S.F. _____ Section 1. NEW SECTION . 322E.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Authorized repair provider” means a person other than an 4 original farm equipment manufacturer with whom the manufacturer 5 has entered into an oral or written agreement for a definite 6 or indefinite period, if the manufacturer grants to the 7 person a license to use a trade name, service mark, or related 8 characteristic for the purposes of offering repair services 9 under the name of the manufacturer. 10 2. “Diesel exhaust fluid” means the same as defined in 40 11 C.F.R. §1036.801. 12 3. “Diesel exhaust fluid system” or “system” means a system 13 that utilizes diesel exhaust fluid as part of a selective 14 catalytic reduction process that is operated by one or more 15 digital electronic components. 16 4. “Digital electronic component” means an item containing 17 an integrated circuit, if manufactured as part of a diesel 18 exhaust fluid system that is integrated into farm equipment. 19 5. a. “Embedded software” means programmable instructions 20 provided on firmware delivered with digital electronic 21 components for the purposes of operating a diesel exhaust fluid 22 system integrated into farm equipment, including all relevant 23 patches and fixes made by the original equipment manufacturer. 24 b. “Embedded software” includes but is not limited to an 25 internal operating system, a machine code, an assembly code, a 26 root code, or a microcode. 27 6. “Farm equipment” means a type of diesel-powered motorized 28 equipment that is designed or adapted and used exclusively for 29 the production of agricultural commodities, including a crop 30 as defined in section 202.1 or livestock as defined in section 31 717.1. 32 7. “Firmware” means a software program or set of 33 instructions programmed on a hardware device to allow the 34 device to communicate with other computer hardware. 35 -1- LSB 6873XC (1) 91 da/js 1/ 6

S.F. _____ 8. “Interest holder” means a person who holds a legal 1 interest in farm equipment that includes a diesel exhaust fluid 2 system, if the person is the owner, lessee, or licensee of a 3 digital electronic component that operates a diesel exhaust 4 fluid system integrated into the farm equipment. 5 9. “Original farm equipment manufacturer” or “manufacturer” 6 means a person who, in the ordinary course of business, is 7 engaged in the business of doing all of the following: 8 a. Manufacturing and assembling parts of new farm equipment 9 for sale or lease, if the new farm equipment includes a diesel 10 exhaust fluid system. 11 b. Providing items and documentation for servicing, 12 maintaining, or repairing a diesel exhaust fluid system that 13 is integrated into the new farm equipment, including providing 14 replacement parts. 15 10. “Replacement part” means a part of a digital electronic 16 component that is an element of a diesel exhaust fluid system 17 integrated into farm equipment, if the part is manufactured 18 to perform the same or a similar function as the part being 19 replaced, and the part restores digital electronic components 20 to an operational condition or improves the efficiency or 21 capability of the digital electronic components. 22 11. “Trade secret” means anything tangible or intangible 23 or electronically stored or kept that constitutes, represents, 24 evidences, or records intellectual property, including 25 secret or confidentially held designs, processes, procedures, 26 formulas, inventions, or improvements; secret or confidentially 27 held scientific, technical, merchandising, production, 28 financial, business, or management information; or any other 29 trade secret as defined in 18 U.S.C. §1839. 30 Sec. 2. NEW SECTION . 322E.2 Rulemaking authority. 31 The attorney general shall adopt rules pursuant to chapter 32 17A to administer this chapter. 33 Sec. 3. NEW SECTION . 322E.3 Enforcement authority. 34 1. The attorney general shall enforce this chapter, 35 -2- LSB 6873XC (1) 91 da/js 2/ 6

S.F. _____ including rules adopted under this chapter. 1 2. A district court may prevent and restrain a violation 2 of this chapter through the issuance of an injunction. The 3 attorney general or a county attorney shall institute suits on 4 behalf of the state to prevent and restrain violations of this 5 chapter. 6 Sec. 4. NEW SECTION . 322E.4 Application. 7 1. This chapter shall not be construed to require an 8 original equipment manufacturer to divulge a trade secret. 9 2. a. Except as provided in paragraph “b” , this chapter 10 shall not abrogate, interfere with, contradict, or alter 11 the terms of any agreement executed by an interest holder 12 and another party relating to farm equipment, including 13 performance, a warranty, or recall repair work. 14 b. A provision in an agreement entered into by an interest 15 holder and another party that waives, limits, or disclaims the 16 rights set forth in this chapter is void as contrary to public 17 policy. 18 3. This chapter shall not require an original farm equipment 19 manufacturer or an authorized repair provider to provide 20 an interest holder access to nondiagnostic or nonrepair 21 information provided by the manufacturer to the authorized 22 repair provider pursuant to the terms of an agreement. 23 Sec. 5. NEW SECTION . 322E.5 Terms and conditions of use —— 24 diagnostic and repair information. 25 1. a. An original farm equipment manufacturer shall make 26 diagnostic and repair information regarding the operation of 27 a diesel exhaust fluid system, including technical updates 28 and embedded software updates and corrections, available to 29 any interest holder for no charge or in the same manner as 30 the manufacturer makes such diagnostic and repair information 31 available to the manufacturer’s authorized repair providers 32 doing business in the same region as the interest holder when 33 using the farm equipment. 34 b. The original farm equipment manufacturer is not required 35 -3- LSB 6873XC (1) 91 da/js 3/ 6

S.F. _____ to make the diagnostic and repair information available in a 1 print format. 2 2. An original farm equipment manufacturer shall not 3 require an interest holder to purchase diagnostic and repair 4 information regarding the operation of a diesel exhaust fluid 5 system if the manufacturer sells the diagnostic and repair 6 information to the manufacturer’s authorized repair providers 7 on terms that are more favorable than the terms offered to the 8 interest holder. 9 Sec. 6. NEW SECTION . 322E.6 Terms and conditions of use —— 10 replacement parts and diagnostic and repair tools. 11 1. a. An original farm equipment manufacturer shall make 12 available for purchase by an interest holder a replacement part 13 necessary to operate a diesel exhaust fluid system to the same 14 extent that the manufacturer makes available the same digital 15 electronic component to an authorized repair provider doing 16 business in the same region as the interest holder when using 17 the farm equipment. 18 b. The terms and conditions of the purchase described in 19 paragraph “a” shall be fair and reasonable according to criteria 20 provided in rules adopted by the attorney general. The 21 criteria may be based on the terms and conditions of agreements 22 entered into by the original farm equipment manufacturer and 23 authorized repair providers doing business in the same region 24 as the interest holder when using the farm equipment. 25 2. a. An original farm equipment manufacturer shall make 26 available for purchase by an interest holder a diagnostic 27 repair tool necessary to operate a diesel exhaust fluid system 28 to the same extent that the manufacturer makes available 29 the diagnostic repair tool to an authorized repair provider 30 doing business in the same region as the interest holder 31 when using the farm equipment. The diagnostic repair tool 32 shall incorporate the same diagnostic, repair, and remote 33 communications capabilities that the manufacturer makes 34 available to the repair or engineering personnel employed by 35 -4- LSB 6873XC (1) 91 da/js 4/ 6

S.F. _____ the manufacturer or to any authorized repair provider. 1 b. The terms and conditions of the purchase described in 2 paragraph “a” shall be fair and reasonable according to criteria 3 provided in rules adopted by the attorney general. The 4 criteria may be based on the terms and conditions of agreements 5 entered into by the original farm equipment manufacturer and 6 authorized repair providers doing business in the same region 7 as the interest holder when using the farm equipment. 8 3. The original farm equipment manufacturer shall not 9 condition the availability of a replacement part described 10 in subsection 1 or a diagnostic repair tool described in 11 subsection 2 on a requirement that a replacement part or 12 diagnostic repair tool be registered, paired with, or approved 13 by the manufacturer or an authorized repair provider before 14 the replacement part or diagnostic repair tool is used. The 15 manufacturer shall not impose any additional cost or burden 16 that is not reasonably necessary or that may unreasonably 17 impede the interest holder. 18 Sec. 7. NEW SECTION . 322E.7 Unfair or deceptive trade 19 practice. 20 An original farm equipment manufacturer who violates this 21 chapter commits an unfair or deceptive trade practice as 22 provided in section 714.16, subsection 2, paragraph “a” . 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 This bill restricts certain practices by an original farm 27 equipment manufacturer (manufacturer), if the manufacturer 28 sells diesel-powered farm equipment integrated with a diesel 29 exhaust fluid (DEF) system operated by digital electronic 30 components designed to reduce certain emissions (nitrogen 31 oxides) under regulations promulgated by the United States 32 environmental protection agency (see 40 C.F.R. §1065.735). The 33 bill provides for circumstances in which farm equipment is 34 subject to repair due to a fault in the DEF system. The bill 35 -5- LSB 6873XC (1) 91 da/js 5/ 6

S.F. _____ provides that a manufacturer must make certain items related to 1 the DEF system available to a person holding a legal interest 2 in the farm equipment (interest holder) in the same manner 3 and to the same extent as the manufacturer makes such items 4 available to the manufacturer’s authorized repair providers 5 doing business in the same region as the interest holder. The 6 items include diagnostic and repair information, including 7 technical updates, replacement parts, and diagnostic repair 8 tools. A manufacturer is not required to provide a replacement 9 part that is no longer available to the manufacturer. The 10 bill does not require a manufacturer to divulge a trade secret 11 and the manufacturer cannot abrogate warranty provisions. A 12 provision in an agreement that is entered into by an interest 13 holder that waives a right provided in the bill is void. The 14 attorney general is responsible for enforcing the provisions 15 of the bill and is required to adopt rules necessary to 16 implement the bill’s provisions. A violation of the bill by 17 a manufacturer is considered an unfair or deceptive trade 18 practice. The attorney general or county attorney may bring 19 a civil action against the manufacturer, including by seeking 20 injunctive relief or by asking a court to impose a civil 21 penalty not to exceed $40,000 per violation. 22 -6- LSB 6873XC (1) 91 da/js 6/ 6