House File 556 - IntroducedA Bill ForAn Act 1relating to the availability of diagnostic and repair
2information, diagnostic repair tools, and service parts
3provided by manufacturers of digital electronic products.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  NEW SECTION.  550A.1  Definitions.
   2As used in this chapter, unless the context otherwise
3requires:
   41.  “Authorized repair provider” means a person who is
5engaged in the diagnosis, service, maintenance, or repair of a
6digital electronic product in this state pursuant to an oral
7or written agreement with the manufacturer of the digital
8electronic product to provide such services in the name of the
9manufacturer for a definite or indefinite period of time.
   102.  “Diagnostic and repair information” means any information
11provided to an authorized repair provider by the manufacturer
12of a digital electronic product for the purposes of diagnosis,
13service, maintenance, or repair of the digital electronic
14product. “Diagnostic and repair information” includes manuals,
15diagrams, reporting output, service code descriptions,
16repair technical updates, diagnostic software, service access
17passwords, updates and corrections to firmware, and any related
18information or documentation.
   193.  “Digital electronic product” means a part or product
20containing a microprocessor originally manufactured for
21distribution and sale in the United States.
   224.  “Fair and reasonable terms” means an equitable purchase
23price for a part or product that takes into account but is not
24limited to the following factors:
   25a.  The net cost to an authorized repair provider to purchase
26a similar part or product from a manufacturer, excluding any
27discounts, rebates, or other incentive programs.
   28b.  The cost to a manufacturer to prepare and distribute
29the part or product, excluding any research and development
30costs incurred from the design, implementation, upgrade, or
31alteration of the part or product, but including amortized
32capital costs for the preparation and distribution of the part
33or product.
   34c.  The purchase price charged by other manufacturers for a
35similar part or product.
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   15.  “Independent repair provider” means a person who is
2engaged in the diagnosis, service, maintenance, or repair of
3a digital electronic product in this state not pursuant to a
4written or oral agreement with the manufacturer of the digital
5electronic product to provide such services in the name of the
6manufacturer.
   76.  “Manufacturer” means a person who, in the ordinary course
8of business, is engaged in the selling or leasing of a digital
9electronic product to consumers in this state and is engaged in
10the diagnosis, service, maintenance, or repair of that digital
11electronic product.
   127.  “Owner” means a person who lawfully acquires a digital
13electronic product purchased or used in this state.
   148.  “Person” means the same as defined in section 4.1.
   159.  “Service part” means a replacement part for a digital
16electronic product, either new or used, made available to an
17authorized repair provider by the manufacturer to repair the
18digital electronic product.
   1910.  “Trade secret” means the same as defined in section
20550.2.
21   Sec. 2.  NEW SECTION.  550A.2  Manufacturer requirements —
22prohibitions — limitations.
   231.  A manufacturer shall do all of the following:
   24a.  Make diagnostic and repair information that is provided
25to an authorized repair provider available to an independent
26repair provider or owner in the same manner that such
27information is provided to the authorized repair provider and
28without any additional charge.
   29b.  Make a service part that is provided to an authorized
30repair provider available for purchase by an independent repair
31provider or owner upon fair and reasonable terms. However, the
32manufacturer need not make accessible for purchase any service
33part no longer available to the manufacturer or the authorized
34repair provider.
   35c.  Make a diagnostic repair tool that incorporates the same
-2-1diagnostic repair capabilities made available to an authorized
2repair provider available for purchase by an independent repair
3provider or owner upon fair and reasonable terms.
   42.  A manufacturer that sells diagnostic and repair
5information to an independent repair provider or owner in a
6format that is standardized with other manufacturers shall
7not require an authorized repair provider to purchase such
8information in a proprietary format, unless the proprietary
9format includes information that is not available in a
10standardized format.
   113.  A manufacturer of a digital electronic product used for
12the purpose of providing security-related functions shall not
13exclude diagnostic and repair information that is necessary
14to reset a security-related electronic function from the
15information provided to an independent repair provider or
16owner. If necessary for security purposes, a manufacturer may
17provide such information through a secure data release system.
   184.  A manufacturer that provides diagnostic and repair
19information relating to a digital electronic product to a
20third-party publication or service information system shall
21be deemed to be in compliance with the requirements of this
22section with respect to the digital electronic product.
   235.  Nothing in this section shall be construed to do any of
24the following:
   25a.  Require a manufacturer to divulge information entitled to
26protection as a trade secret.
   27b.  Interfere with, contradict, or alter the terms of an
28agreement executed between a manufacturer and an authorized
29repair provider.
   30c.  Require a manufacturer or authorized repair provider
31to provide access to nondiagnostic or nonrepair information
32provided by a manufacturer to an authorized repair provider
33pursuant to the terms of an agreement executed between the
34manufacturer and authorized repair provider.
35   Sec. 3.  NEW SECTION.  550A.3  Notice of violation — right to
-3-1cure — private right of action — attorney general intervention.
   21.  An independent repair provider or owner who believes
3that a manufacturer has violated this chapter shall notify the
4manufacturer of the alleged violation in writing. Such notice
5shall include a description of the alleged violation.
   62.  Upon receipt of notice of an alleged violation, a
7manufacturer shall respond in writing and shall have a right to
8cure the alleged violation within thirty days of receiving such
9notice.
   103.  Either party may file an action concerning an alleged
11violation of this chapter in the district court for the county
12in which the violation is alleged to have occurred.
   134.  Upon timely application to the court in which an action
14involving a violation of this chapter is pending, the attorney
15general may intervene as a party at any time or may be heard at
16any time. The attorney general’s failure to intervene shall
17not preclude the attorney general from bringing a separate
18action.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
   22This bill requires manufacturers of digital electronic
23products that are sold or used in Iowa to make available
24diagnostic and repair information, diagnostic repair tools, and
25service parts.
   26The bill contains several definitions. The bill includes
27definitions for “authorized repair provider”, “diagnostic
28and repair information”, “digital electronic product”,
29“fair and reasonable terms”, “independent repair provider”,
30“manufacturer”, “owner”, “person”, “service part”, and “trade
31secret”.
   32The bill requires a manufacturer to make diagnostic and
33repair information that is provided to authorized repair
34providers available to independent repair providers and owners
35in the same manner and without any additional charge. A
-4-1manufacturer must make service parts and diagnostic repair
2tools provided to authorized repair providers available for
3purchase by independent repair providers or owners upon fair
4and reasonable terms, as defined in the bill.
   5The bill prohibits a manufacturer that sells diagnostic and
6repair information in a standardized format from requiring its
7authorized repair providers to purchase such information in
8a proprietary format, unless necessary. A manufacturer of a
9digital electronic product used for security-related functions
10is prohibited from excluding certain diagnostic and repair
11information from the information provided to independent repair
12providers or owners.
   13The bill specifies that a manufacturer that provides
14diagnostic and repair information to a third-party publication
15or service information system regarding a digital electronic
16product is deemed to be in compliance with the bill’s
17requirements with respect to that product.
   18The bill provides that nothing in the bill shall be construed
19to require manufacturers to divulge trade secrets, interfere
20with or alter the terms of existing agreements between
21manufacturers and authorized repair providers, or require
22manufacturers or authorized repair providers to provide access
23to nondiagnostic or nonrepair information.
   24The bill provides that an independent repair provider
25or owner who believes that a manufacturer has violated the
26bill shall notify the manufacturer of the alleged violation
27in writing, which must include a description of the alleged
28violation. A manufacturer must respond to a notice of
29an alleged violation in writing and may cure such alleged
30violation within 30 days of receiving the notice. Either party
31may file an action concerning an alleged violation of the bill
32in the district court for the county in which the violation is
33alleged to have occurred. The attorney general may intervene
34as a party in an action brought pursuant to the bill upon
35timely application to the court in which the action is pending.
-5-1The attorney general’s failure to intervene does not preclude
2the attorney general from bringing a separate action.
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