HF 2442 (LSB 6585YH (1) 91)

HOUSE FILE 2442

BY  TUREK

A BILL FOR

An Act providing for the repair of certain equipment associated with farm implements, and providing penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  322E.1  Short title.
   This chapter shall be known and may be cited as the “Iowa Fair Repair for Farm Implements Act”.
    Sec. 2.  NEW SECTION.  322E.2  Definitions.
   As used in this chapter, unless the context otherwise requires:
   1.  “Authorized repair provider” means a person other than an original farm equipment manufacturer with whom the manufacturer has entered into an oral or written agreement for a definite or indefinite period, if the manufacturer grants to the person a license to use a trade name, service mark, or related characteristic for the purposes of offering repair services under the name of the manufacturer.
   2.  “Digital electronic equipment” means a product containing an integrated circuit, or a replacement part for use in a product containing an integrated circuit, if manufactured for distribution and sale in the United States, for installation in a farm implement.
   3.  a.  “Embedded software” means programmable instructions provided on firmware delivered with digital electronic equipment for the purposes of product operation, including all relevant patches and fixes made by the original equipment manufacturer.
   b.  “Embedded software” includes but is not limited to a basic internal operating system, an internal operating system, a machine code, an assembly code, a root code, and a microcode. 
   4.  “Fair and reasonable terms” means an equitable price in light of relevant factors, including but not limited to all of the following:
   a.  The net cost to the authorized repair provider for similar information obtained from an original equipment manufacturer, less any discounts, rebates, or other incentive programs.
   b.  The cost to an original farm equipment manufacturer for preparing and distributing the information, excluding any research and development costs incurred in designing, implementing, upgrading, or altering digital electronic equipment, but including amortized capital costs for the preparation and distribution of the information. 
   c.  The price charged by an original farm equipment manufacturer for similar information.
   d.  The price charged by an original farm equipment manufacturer for similar information prior to the launch of a manufacturer’s internet site.
   e.  The ability of aftermarket technicians or shops to afford the information.
   f.  The means by which the information is distributed.
   g.  The extent to which the information is used, including the number of users, and the frequency, duration, and volume of use.
   h.  Inflation.
   5.  “Farm implement” means any of the following:
   a.  A type of motorized equipment that is designed or adapted and used exclusively for the production of agricultural commodities, including a crop as defined in section 202.1 or livestock as defined in section 717.1.
   b.  Farm machinery and equipment exempt from sales tax as provided in section 423.3, subsection 8, if the farm machinery and equipment is a self-propelled implement of husbandry or is customarily drawn or attached to a self-propelled implement of husbandry.
   c.  A farm tractor, fence-line feeder, or implement of husbandry, as defined in section 321.1.
   6.  “Firmware” means a software program or set of instructions programmed on a hardware device to allow the device to communicate with other computer hardware.
   7.  a.  “Independent repair provider” means a person operating a business in this state, if all of the following apply:
   (1)  The business is engaged in the diagnosis, service, maintenance, or repair of digital electronic equipment.
   (2)  The business is not affiliated with an original farm equipment manufacturer or the authorized repair provider of a manufacturer.
   b.  “Independent repair provider” does not include an original farm equipment manufacturer engaged in the diagnosis, service, maintenance, or repair of digital electronic equipment that is not affiliated with the manufacturer.
   8.  “Interest holder” means a person who holds a legal interest in digital electronic equipment, including as an owner, lessee, or licensee.
   9.  a.  “Motor vehicle” means any self-propelled vehicle subject to registration under chapter 321.
   b.  “Motor vehicle” does not include a farm implement.
   10.  “Motor vehicle dealer” means a person engaged in the business of selling at retail motor vehicles or representing or advertising that the person is engaged or intends to engage in such business in this state as provided in section 322.4.
   11.  “Motor vehicle lessor” means a person engaged in the business of leasing motor vehicles for use by others for compensation as provided in chapter 321F.
   12.  “Original farm equipment manufacturer” or “manufacturer” means a person who, in the ordinary course of business, is engaged in the business of doing all of the following:
   a.  Selling or leasing a new farm implement that includes new digital electronic equipment, including replacement parts of equipment, to any person.
   b.  Diagnosing, servicing, maintaining, or repairing digital electronic equipment that is part of a new farm implement, including parts of such digital electronic equipment.
   13.  a.  “Replacement part” means any new or used tangible personal property made available by an original farm equipment manufacturer to an authorized repair provider for purposes of effecting a repair.
   b.  “Replacement part” includes a component of digital electronic equipment that performs the same or similar function as the component being replaced and that restores digital electronic equipment to an operational condition or improves the efficiency or capability of digital electronic equipment that is part of a farm implement.
   14.  “Trade secret” means anything tangible or intangible or electronically stored or kept that constitutes, represents, evidences, or records intellectual property, including secret or confidentially held designs, processes, procedures, formulas, inventions, or improvements, or secret or confidentially held scientific, technical, merchandising, production, financial, business, or management information, or any other trade secret as defined in 18 U.S.C. §1839.
    Sec. 3.  NEW SECTION.  322E.3  Requirements.
   1.  An original farm equipment manufacturer of a farm implement that includes digital electronic equipment shall make diagnostic and repair information, including repair technical updates and embedded software updates and corrections, available to any independent repair provider or interest holder of digital electronic equipment manufactured by the original farm equipment manufacturer for no charge or in the same manner as the manufacturer makes such diagnostic and repair information available to authorized repair providers.
   2.  An original farm equipment manufacturer of a farm implement that includes digital electronic equipment that sells any diagnostic and repair information to any independent repair provider or to any interest holder in a format that is standardized with other original farm equipment manufacturers, and on terms and conditions more favorable than the manner and the terms and conditions pursuant to which the authorized repair provider obtains the same diagnostic and repair information, shall not require an authorized repair provider or interest holder to continue purchasing diagnostic and repair information in a proprietary format, unless such proprietary format includes diagnostic and repair information or functionality that is not available in such standardized format.
   3.  An original farm equipment manufacturer of a farm implement that includes digital electronic equipment sold or used in this state shall make available for purchase by independent repair providers and interest holders all diagnostic repair tools incorporating the same diagnostic, repair, and remote communications capabilities that the original farm equipment manufacturer makes available to the repair or engineering personnel employed by the original farm equipment manufacturer or to any authorized repair provider. An original farm equipment manufacturer shall offer such tools for sale to any independent repair provider or interest holder upon fair and reasonable terms. An original farm equipment manufacturer that provides diagnostic repair information to aftermarket diagnostic tool manufacturers, diagnostics providers, or service information publications and systems shall not be responsible for the content and functionality of such aftermarket diagnostic tools, diagnostics, or service information systems.
   4.  Digital electronic equipment included in a farm implement sold or used in this state for the purpose of providing security-related functions shall not exclude diagnostic and repair information necessary to reset a security-related electronic function from the information provided to an independent repair provider or an interest holder. Information necessary to reset an immobilizer system or other security-related electronic module shall be obtained by an independent repair provider or interest holder, or through the appropriate secure data release systems of the original farm equipment manufacturer.
    Sec. 4.  NEW SECTION.  322E.4  Applicability.
   1.  This chapter does not require an original farm equipment manufacturer to sell replacement parts if the replacement parts are no longer available to the manufacturer or an authorized repair provider of the manufacturer.
   2.  This chapter does not apply to a motor vehicle, or any product or service of a motor vehicle manufacturer, motor vehicle dealer, or motor vehicle lessor.
    Sec. 5.  NEW SECTION.  322E.5  Statutory construction.
   This chapter shall not be construed to do any of the following:
   1.  Require an original equipment manufacturer to divulge a trade secret.
   2.  Except as provided in section 322E.8, abrogate, interfere with, contradict, or alter the terms of any agreement executed and in effect between an authorized repair provider and an original farm equipment manufacturer, including but not limited to the performance or provision of warranty or recall repair work by an authorized repair provider on behalf of a manufacturer pursuant to such agreement.
   3.  Require an original farm equipment manufacturer or an authorized repair provider to provide an interest holder or independent repair provider access to nondiagnostic and nonrepair information provided by a manufacturer to an authorized repair provider pursuant to the terms of an agreement.
    Sec. 6.  NEW SECTION.  322E.6  Rulemaking authority.
   1.  The attorney general shall adopt rules under chapter 17A and forms as necessary to implement this chapter.
   2.  In prescribing rules and forms under this chapter, the attorney general may cooperate with agencies that perform similar functions in other states with a view to effectuating the policy of this chapter to achieve maximum uniformity in the form and content of certification, regulation, and procedural evaluation of manufacturer-established programs, required recordkeeping, required reporting wherever practicable, and required notices to consumers.
    Sec. 7.  NEW SECTION.  322E.7  Subpoenas.
   The attorney general may enforce and ensure compliance with the provisions of this chapter and rules adopted pursuant to section 322E.6, may issue subpoenas requiring the attendance of witnesses and the production of evidence, and may petition any court having jurisdiction to compel compliance with the subpoenas.
    Sec. 8.  NEW SECTION.  322E.8  Certain provisions in agreements void.
   1.  A provision in an agreement entered into by a consumer that waives, limits, or disclaims the rights set forth in this chapter is void as contrary to public policy.
   2.  A provision in an agreement that waives, avoids, restricts, or limits an original farm equipment manufacturer’s compliance with this chapter shall be void and unenforceable.
    Sec. 9.  NEW SECTION.  322E.9  Unfair or deceptive trade practice.
   An original farm equipment manufacturer who violates this chapter commits an unfair or deceptive trade practice as provided in section 714.16, subsection 2, paragraph “a”.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill creates the “Iowa Fair Repair for Farm Implements Act”, which restricts certain practices by an original farm equipment manufacturer of digital electronic equipment that is part of a farm implement such as a tractor subject to repair by the manufacturer, an authorized repair provider affiliated with the manufacturer, an independent repair provider, or a person who holds a legal interest in the equipment.
   The bill provides that a manufacturer must make certain items available to an independent repair provider or a person holding a legal interest in the digital electronic equipment, including diagnostic and repair information. The manufacturer must also provide diagnostic repair tools to an independent repair provider or a person holding a legal interest in the digital electronic equipment, in the same manner as provided to an authorized repair provider. The sales terms must be fair and reasonable as defined in the bill. The bill provides that a manufacturer is not required to provide replacement parts if no longer available to the manufacturer or an authorized repair provider. The bill does not require a manufacturer to divulge a trade secret or abrogate warranty provisions. A provision in an agreement that is entered into by a consumer that waives a right provided in the bill is void.
   The attorney general is responsible for enforcing the provisions of the bill and is required to adopt rules necessary to implement the bill’s provisions. A violation of the bill by a manufacturer is considered an unfair or deceptive trade practice. The attorney general may bring a civil action against the manufacturer, including by seeking injunctive relief or by asking a court to impose a civil penalty not to exceed $40,000 per violation.