H.F. _____ Section 1. NEW SECTION . 322E.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. a. “Agricultural equipment” means equipment that is 4 primarily designed for use in a farming operation. 5 b. “Agricultural equipment” includes any of the following: 6 (1) A tractor, trailer, combine, sprayer, tillage 7 implement, baler, and other equipment used to plant, cultivate, 8 or harvest agricultural products. 9 (2) An attachment to and repair part for equipment described 10 in subparagraph (1). 11 (3) “Agricultural equipment” does not include any of the 12 following: 13 (a) A self-propelled vehicle designed primarily for the 14 transportation of individuals or property on a street or 15 highway. 16 (b) A powersports vehicle, including any of the following: 17 (i) A vehicle for off-road operation. 18 (ii) A personal watercraft that is a motorboat that is 19 designed to be operated by a person sitting, standing, or 20 kneeling on the vessel, rather than the conventional manner of 21 sitting or standing inside the vessel, and that is designed 22 primarily for use off of the public highways, and that uses 23 either an inboard motor powering a water jet pump or an 24 outboard motor-driven propeller. 25 (iii) A snowmobile. 26 (c) Any aircraft used in an agricultural aircraft 27 operation, as defined in 14 C.F.R. §137.3. 28 (d) Any equipment designed and used primarily for 29 irrigation purposes. 30 2. a. “Authorized repair provider” means a person that 31 is unaffiliated with a manufacturer other than through an 32 arrangement with the manufacturer, whether for a definite or an 33 indefinite period, in which the manufacturer, for the purpose 34 of offering to provide services to an equipment owner regarding 35 -1- LSB 6914YC (3) 91 da/js 1/ 9

H.F. _____ the owner’s equipment or a part, grants the person any of the 1 following: 2 (1) A license to use a trade name, service mark, or other 3 proprietary identifier. 4 (2) Authorization under any other arrangement to act on 5 behalf of the manufacturer. 6 b. “Authorized repair provider” includes a manufacturer that 7 offers to provide services to an owner of the manufacturer’s 8 agricultural equipment regarding the owner’s agricultural 9 equipment or a part if the manufacturer does not have an 10 arrangement with an unaffiliated person, as described in 11 paragraph “a” . 12 3. “Data” means, with the consent of an owner, transmitted 13 or compiled information arising from the operation of an 14 owner’s agricultural equipment or its parts. 15 4. “Documentation” means a manual; diagram, including a 16 schematic diagram; reporting output; service code description; 17 security code or password; or similar type of guidance or 18 information, whether in an electronic or tangible format, that 19 a manufacturer provides to an authorized repair provider to 20 assist the authorized repair provider with services performed 21 on the manufacturer’s agricultural equipment or a part. 22 5. a. “Embedded software for agricultural equipment” means 23 any programmable instructions provided on firmware delivered 24 with or loaded to the agricultural equipment, with respect to 25 agricultural equipment operation. 26 b. “Embedded software for agricultural equipment” includes 27 all relevant patches and fixes that the manufacturer makes, 28 including but not limited to items described as a basic 29 internal operating system, internal operating system, machine 30 code, assembly code, root code, and microcode. 31 6. “Equipment dealer” means any person primarily engaged in 32 the retail sale of agricultural equipment. 33 7. “Fair and reasonable terms and costs” means the following: 34 a. (1) With respect to obtaining documentation, parts, 35 -2- LSB 6914YC (3) 91 da/js 2/ 9

H.F. _____ embedded software, firmware, or tools from a manufacturer 1 to provide services, terms that are equivalent to the most 2 favorable terms that the manufacturer offers to an authorized 3 repair provider and costs that are no greater than the 4 manufacturer’s suggested retail price. 5 (2) Except as provided in paragraph “d” , costs considered 6 under subparagraph (1) are calculated using net costs incurred, 7 accounting for any discounts, rebates, or incentives offered. 8 b. With respect to documentation, the manufacturer provides 9 the documentation, including any relevant updates to the 10 documentation, at no charge, except that the manufacturer may 11 charge a fee for a printed copy of the documentation if the 12 amount of the fee covers only the manufacturer’s actual cost to 13 prepare and send the printed copy of the documentation. 14 c. With respect to tools that are software programs, the 15 manufacturer provides the tools that are software programs 16 subject to all of the following: 17 (1) At no charge and without requiring authorization or 18 internet access or otherwise imposing impediments to access or 19 use. 20 (2) In the course of effectuating the diagnosis, 21 maintenance, or repair and enabling the full functionality of 22 the agricultural equipment or part. 23 (3) In a manner that does not impair the efficient and 24 cost-effective performance of the agricultural equipment or 25 part. 26 d. Notwithstanding paragraph “a” , subparagraph (1), parts 27 shall be sold to an owner or an independent repair provider 28 under equitable terms for access to or receipt of any part 29 pertaining to agricultural equipment and in a manner that is 30 any of the following: 31 (1) Is fair to both parties in light of any agreed-upon 32 conditions, the promised quality, and the timeliness of the 33 delivery. 34 (2) Does not discourage or disincentivize repairs to be made 35 -3- LSB 6914YC (3) 91 da/js 3/ 9

H.F. _____ by an owner or an independent repair provider. 1 e. Terms are fair if the terms do not impose on an owner or 2 independent repair provider any of the following: 3 (1) Substantial obligation to use, or any restriction 4 on the use of, a part, embedded software, embedded software 5 for agricultural equipment, firmware, or tool, including a 6 condition that the owner or independent repair provider become 7 an authorized repair provider of the manufacturer. 8 (2) A requirement that a part, embedded software, embedded 9 software for agricultural equipment, firmware, or tool be 10 registered or paired with or approved by the manufacturer or an 11 authorized repair provider before the part, embedded software, 12 embedded software for agricultural equipment, firmware, or tool 13 is operational. 14 8. “Firmware” means a software program or set of 15 instructions programmed on equipment or a part to allow the 16 equipment or part to function or communicate with itself or 17 with other computer hardware. 18 9. a. “Independent repair provider” , except as otherwise 19 provided in paragraph “b” , means a person in the state that is 20 all of the following: 21 (1) Neither a manufacturer’s authorized repair provider nor 22 affiliated with a manufacturer’s authorized repair provider. 23 (2) Engaged in offering or providing services. 24 b. “Independent repair provider” includes all of the 25 following: 26 (1) An authorized repair provider if the authorized repair 27 provider is offering or providing services for a manufacturer 28 other than a manufacturer with which the authorized repair 29 provider has an arrangement described in subsection 2. 30 (2) A manufacturer with respect to offering or providing 31 services for another manufacturer’s agricultural equipment or 32 part. 33 10. “Original equipment manufacturer” or “manufacturer” 34 means a person doing business in the state and engaged in 35 -4- LSB 6914YC (3) 91 da/js 4/ 9

H.F. _____ the business of selling, leasing, or otherwise supplying 1 agricultural equipment or parts manufactured by or on behalf of 2 itself to any individual, business, or other entity. 3 11. “Owner” means a person that owns agricultural equipment, 4 or an agent of the owner. 5 12. “Part” means a new or used replacement part for 6 agricultural equipment that a manufacturer offers for sale 7 or otherwise makes available for the purpose of providing 8 services. 9 13. “Services” means diagnostic, maintenance, or repair 10 services performed on agricultural equipment. 11 14. “Tools” means any software program, hardware implement, 12 or other apparatus used for diagnosis, maintenance, or repair 13 of agricultural equipment or parts, including software or 14 another mechanism that provides, programs, or pairs a new 15 part, calibrates functionality, or performs any other function 16 required to return the agricultural equipment or part to a 17 fully functional condition. 18 15. a. “Trade secret” means the whole or any portion or 19 phase of any scientific or technical information, design, 20 process, procedure, formula, improvement, or confidential 21 business or financial information; a listing of names, 22 addresses, or telephone numbers; or other information relating 23 to any business or profession that is secret and of value. 24 b. To be a trade secret, the owner thereof must have taken 25 measures to prevent the secret from becoming available to 26 persons other than those selected by the owner to have access 27 thereto for limited purposes. 28 Sec. 2. NEW SECTION . 322E.2 Agricultural equipment —— 29 obligations regarding services —— exemption. 30 1. Except as provided in subsection 2, all of the following 31 apply: 32 a. For the purpose of providing services for agricultural 33 equipment in the state, an original equipment manufacturer 34 shall, with fair and reasonable terms and costs, make 35 -5- LSB 6914YC (3) 91 da/js 5/ 9

H.F. _____ available to an independent repair provider or owner of the 1 manufacturer’s equipment any documentation, parts, embedded 2 software, embedded software for agricultural equipment, 3 firmware, tools, or, with owner authorization, data that are 4 intended for use with the equipment or any part, including 5 updates to documentation, parts, embedded software, embedded 6 software for agricultural equipment, firmware, tools, or, with 7 owner authorization, data. 8 b. With respect to agricultural equipment that contains an 9 electronic security lock or other security-related function, a 10 manufacturer shall, with fair and reasonable terms and costs, 11 make available to independent repair providers and owners any 12 documentation, parts, embedded software, embedded software 13 for agricultural equipment, firmware, tools, or, with owner 14 authorization, data needed to reset the lock or function when 15 disabled in the course of providing services. The manufacturer 16 may make the documentation, parts, embedded software, embedded 17 software for agricultural equipment, firmware, tools, or, 18 with owner authorization, data available to independent 19 repair providers and owners through appropriate secure release 20 systems. 21 2. Subsection 1 does not apply to any of the following: 22 a. A part that is no longer available to the original 23 equipment manufacturer. 24 b. Conduct that would require the manufacturer to divulge 25 a trade secret, except that a manufacturer shall not refuse 26 to make available to an independent repair provider or owner 27 any documentation, part, embedded software, embedded software 28 for agricultural equipment, firmware, tool, or, with owner 29 authorization, data necessary to provide services on grounds 30 that the documentation, part, embedded software, embedded 31 software for agricultural equipment, firmware, tool, or, with 32 owner authorization, data itself is a trade secret. 33 3. Neither an original equipment manufacturer nor an 34 agricultural equipment dealer is liable for faulty or otherwise 35 -6- LSB 6914YC (3) 91 da/js 6/ 9

H.F. _____ improper repairs provided by an independent repair provider 1 or owner, including faulty or otherwise improper repairs that 2 cause any of the following: 3 a. Damage to agricultural equipment that occurs during such 4 repairs. 5 b. Any indirect, incidental, special, or consequential 6 damages. 7 c. An inability to use, or a reduced functionality of, a 8 piece of agricultural equipment resulting from the faulty or 9 otherwise improper repair. 10 4. A manufacturer that provides data to an independent 11 repair provider in compliance with this chapter is neither 12 responsible nor liable to the owner, the independent repair 13 provider, or another party for any action that the independent 14 repair provider or another party takes while using or relying 15 on the data. 16 Sec. 3. NEW SECTION . 322E.3 Agricultural equipment —— 17 limitations. 18 1. Subject to subsection 2, nothing in this chapter does any 19 of the following: 20 a. Alters the terms of any contract or other arrangement 21 in force between an original equipment manufacturer and an 22 authorized repair provider, including the performance or 23 provision of warranty or recall repair work and any exclusivity 24 or noncompete clause in a contract. 25 b. Authorizes an independent repair provider or owner to do 26 any of the following: 27 (1) Make any modification to agricultural equipment that 28 deactivates a safety notification system, except as necessary 29 to provide services. 30 (2) Access any function of a tool that enables the 31 independent repair provider or owner to change the settings 32 for a piece of agricultural equipment in a manner that brings 33 the equipment out of compliance with any applicable federal, 34 state, or local safety or emissions law, except as necessary to 35 -7- LSB 6914YC (3) 91 da/js 7/ 9

H.F. _____ provide services. 1 (3) Evade emissions, copyright, trademark, or patent laws. 2 (4) Engage in any other illegal equipment modification 3 activity. 4 c. Requires a manufacturer to provide an independent 5 repair provider or owner access to information, other than 6 documentation, that the manufacturer provides to an authorized 7 repair provider pursuant to a contract or other arrangement 8 with the authorized repair provider except as necessary to 9 comply with section 322E.2. 10 d. Exempts a manufacturer from a product liability claim 11 that is otherwise authorized in law. 12 2. a. With respect to a contract or other arrangement, or 13 renewal of a contract or existing arrangement, that an original 14 equipment manufacturer enters into after the effective date of 15 this Act, any contract term, provision, agreement, or language 16 in the contract or arrangement that waives, avoids, restricts, 17 or limits the manufacturer’s obligations under this chapter is 18 void and unenforceable. 19 b. If an agricultural equipment manufacturer enters into, 20 or is covered under, a nationwide memorandum of understanding 21 regarding a right to repair agricultural equipment, the 22 memorandum of understanding governs an owner’s right to 23 provide services, or to engage the services of an independent 24 repair provider, for that manufacturer’s brand of agricultural 25 equipment, except that if compliance with the memorandum of 26 understanding would deny the owner any rights afforded to the 27 owner in this chapter, including any rights to documentation, 28 data, tools, or embedded software for agricultural equipment 29 necessary for the diagnosis, maintenance, or repair of the 30 owner’s agricultural equipment, the owner is entitled to 31 the documentation, data, tools, or embedded software for 32 agricultural equipment in accordance with this chapter. 33 An agricultural equipment manufacturer that enters into a 34 memorandum of understanding is still obligated to meet the 35 -8- LSB 6914YC (3) 91 da/js 8/ 9

H.F. _____ requirements established in this chapter. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 This bill regulates practices by an original farm equipment 5 manufacturer (manufacturer). The manufacturer must make 6 available to an independent repair provider or owner of the 7 manufacturer’s equipment any documentation, parts, embedded 8 software, embedded software for agricultural equipment, 9 firmware, tools, or, with owner authorization, data that are 10 intended for use with the equipment or any part, including 11 updates to documentation, parts, embedded software, embedded 12 software for agricultural equipment, firmware, tools, or, with 13 owner authorization, data. The original manufacturer must 14 make those items available at fair and reasonable terms and 15 costs. Generally, this includes terms that are equivalent 16 to the most favorable terms that the manufacturer offers for 17 the same item to an authorized repair provider and costs 18 that are no greater than the manufacturer’s suggested retail 19 price. The requirements in the bill are subject to a number of 20 limitations. The bill does not require a manufacturer to evade 21 emissions, copyright, trademark, or patent laws. The bill does 22 not exempt a manufacturer from a product liability claim. Any 23 agreement entered into with a manufacturer that waives, avoids, 24 restricts, or limits the manufacturer’s obligations under the 25 bill’s requirements is void and unenforceable. 26 -9- LSB 6914YC (3) 91 da/js 9/ 9