2nd Engrossment - 91st Legislature (2019 - 2020) Posted on 04/14/2020 03:00pm
A bill for an act
relating to commerce; providing for digital fair repair; proposing coding for new
law in Minnesota Statutes, chapter 325E.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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This act may be cited as the "Digital Fair Repair Act."
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(a) For the purposes of this section, the following terms have the
meanings given them.
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(b) "Authorized repair provider" means an individual or business who is unaffiliated
with an original equipment manufacturer and who has (1) an arrangement with the original
equipment manufacturer, for a definite or indefinite period, under which the original
equipment manufacturer grants to the individual or business a license to use a trade name,
service mark, or other proprietary identifier to offer the services of diagnosis, maintenance,
or repair of digital electronic equipment under the name of the original equipment
manufacturer, or (2) other arrangement with the original equipment manufacturer to offer
diagnostic, maintenance, or repair services on behalf of the original equipment manufacturer.
An original equipment manufacturer who offers the services of diagnosis, maintenance, or
repair of its own digital electronic equipment, and who does not have an arrangement
described in this paragraph with an unaffiliated individual or business, is considered an
authorized repair provider with respect to the equipment.
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(c) "Digital electronic equipment" or "equipment" means any product that depends for
its functioning, in whole or in part, on digital electronics embedded in or attached to the
product.
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(d) "Documentation" means any manual, diagram, reporting output, service code
description, schematic diagram, or similar information provided to an authorized repair
provider to affect the services of diagnosis, maintenance, or repair of digital electronic
equipment.
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(e) "Embedded software" means any programmable instructions provided on firmware
delivered with digital electronic equipment or with a part for the equipment to operate
equipment. Embedded software includes all relevant patches and fixes made by the
manufacturer of the equipment or part for these purposes.
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(f) "Fair and reasonable terms" for obtaining a part, tool, or documentation means at
costs and terms, including convenience of delivery and rights of use, equivalent to what is
offered by the original equipment manufacturer to an authorized repair provider, using the
net costs that would be incurred by an authorized repair provider to obtain an equivalent
part, tool, or documentation from the original equipment manufacturer, accounting for any
discounts, rebates, or other incentive programs in arriving at the actual net costs. For
documentation, including any relevant updates, "fair and reasonable terms" means at no
charge, except that when the documentation is requested in physical printed form a fee for
the reasonable actual costs to prepare and send the copy may be charged.
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(g) "Firmware" means a software program or set of instructions programmed on digital
electronic equipment or on a part for the equipment to allow the equipment or part to
communicate with other computer hardware.
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(h) "Independent repair provider" means an individual or business operating in Minnesota
that (1) does not have an arrangement described in paragraph (b) with an original equipment
manufacturer, (2) is not affiliated with any individual or business that has an arrangement
described in paragraph (b), and (3) is engaged in the services of diagnosis, maintenance, or
repair of digital electronic equipment. An original equipment manufacturer or, with respect
to the original equipment manufacturer, an individual or business that has an arrangement
with the original equipment manufacturer or is affiliated with an individual or business that
has such an arrangement with that original equipment manufacturer is considered an
independent repair provider for purposes of the instances it engages in the services of
diagnosis, maintenance, or repair of digital electronic equipment that is not manufactured
by or sold under the name of the original equipment manufacturer.
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(i) "Manufacturer of motor vehicle equipment" means a business engaged in the business
of manufacturing or supplying components used to manufacture, maintain, or repair a motor
vehicle.
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(j) "Motor vehicle" means a vehicle that is designed to transport persons or property on
a street or highway and is certified by the manufacturer under all applicable federal safety
and emissions standards and requirements for distribution and sale in the United States.
Motor vehicle does not include:
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(1) a motorcycle; or
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(2) a recreational vehicle or an auto home equipped for habitation.
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(k) "Motor vehicle dealer" means an individual or business that, in the ordinary course
of business, (1) is engaged in the business of selling or leasing new motor vehicles to an
individual or business pursuant to a franchise agreement, (2) has obtained a license under
section 168.27, and (3) is engaged in the services of diagnosis, maintenance, or repair of
motor vehicles or motor vehicle engines pursuant to the franchise agreement.
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(l) "Motor vehicle manufacturer" means a business engaged in the business of
manufacturing or assembling new motor vehicles.
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(m) "Original equipment manufacturer" means a business engaged in the business of
selling or leasing to any individual or business new digital electronic equipment manufactured
by or on behalf of the original equipment manufacturer.
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(n) "Owner" means an individual or business that owns or leases digital electronic
equipment purchased or used in Minnesota.
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(o) "Part" means any replacement part, either new or used, made available by an original
equipment manufacturer to affect the services of maintenance or repair of digital electronic
equipment manufactured or sold by the original equipment manufacturer.
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(p) "Trade secret" has the meaning given in section 325C.01, subdivision 5.
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(a) For digital electronic equipment and parts for the equipment
sold or used in Minnesota, an original equipment manufacturer must make available, on
fair and reasonable terms, documentation, parts, and tools, inclusive of any updates to
information or embedded software, to any independent repair provider or to the owner of
digital electronic equipment manufactured by or on behalf of, or sold by, the original
equipment manufacturer for purposes of diagnosis, maintenance, or repair. Nothing in this
section requires an original equipment manufacturer to make available a part if the part is
no longer available to the original equipment manufacturer.
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(b) For equipment that contains an electronic security lock or other security-related
function, the original equipment manufacturer must make available to the owner and to
independent repair providers, on fair and reasonable terms, any special documentation,
tools, and parts needed to reset the lock or function when disabled in the course of diagnosis,
maintenance, or repair of the equipment. Documentation, tools, and parts may be made
available through appropriate secure release systems.
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A violation of this section is an unlawful
practice under section 325D.44. All remedies, penalties, and authority granted to the attorney
general under chapter 8 is available to the attorney general to enforce this section.
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(a) Nothing in this section requires an original equipment
manufacturer to divulge a trade secret to an owner or an independent service provider,
except as necessary to provide documentation, parts, and tools on fair and reasonable terms.
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(b) No provision in this section alters the terms of any arrangement described in
subdivision 2, paragraph (b), in force between an authorized repair provider and an original
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 an original
equipment manufacturer pursuant to such arrangement. A provision in the terms of an
arrangement described in subdivision 2, paragraph (b), that purports to waive, avoid, restrict,
or limit the original equipment manufacturer's obligations to comply with this section is
void and unenforceable.
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(c) Nothing in this section requires an original equipment manufacturer or an authorized
repair provider to provide to an owner or independent repair provider access to information,
other than documentation, that is provided by the original equipment manufacturer to an
authorized repair provider pursuant to the terms of an arrangement described in subdivision
2, paragraph (b).
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(a) Nothing in this act applies to (1) a motor vehicle manufacturer,
manufacturer of motor vehicle equipment, or motor vehicle dealer acting in that capacity,
or (2) any product or service of a motor vehicle manufacturer, manufacturer of motor vehicle
equipment, or motor vehicle dealer acting in that capacity.
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(b) Nothing in this section applies to manufacturers or distributors of a medical device
as defined in the Federal Food, Drug, and Cosmetic Act, codified at United States Code,
title 21, section 301 et seq., or a digital electronic product or software manufactured for use
in a medical setting including diagnostic, monitoring, or control equipment or any product
or service that they offer.
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This section applies with respect to equipment sold or in use on
or after January 1, 2020.
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This section is effective January 1, 2021.
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