HF 4800

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/11/2024 02:15pm

A bill for an act
relating to commerce; requiring an original equipment manufacturer to facilitate
the repair of farm equipment; amending Minnesota Statutes 2023 Supplement,
section 325E.72, subdivisions 2, 3, 5, 6, 7, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2023 Supplement, section 325E.72, subdivision 2, is amended
to read:

Subd. 2.

Definitions.

(a) For the purposes of this section, the following terms have the
meanings given.

(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 diagnostic, maintenance, or repair
services for digital electronic equipment new text begin or farm equipment new text end under the name of the original
equipment manufacturer; or (2) an arrangement with the original equipment manufacturer
to offer diagnostic, maintenance, or repair services for digital electronic equipment new text begin or farm
equipment new text end on behalf of the original equipment manufacturer. An original equipment
manufacturer that offers diagnostic, maintenance, or repair services for the original equipment
manufacturer's digital electronic equipment new text begin or farm equipment new text end is considered an authorized
repair provider with respect to the digital electronic equipment new text begin and farm equipment new text end if the
original equipment manufacturer does not have an arrangement described in this paragraph
with an unaffiliated individual or business.

(c) "Contractor" has the meaning given in section 326B.31, subdivision 14.

(d) "Cybersecurity" means the practice of protecting networks, devices, and data from
unauthorized access or criminal use and the practice of ensuring the confidentiality, integrity,
and availability of information.

(e) "Digital electronic equipment" deleted text begin or "equipment" deleted text end means any hardware product that
depends, in whole or in part, on digital electronics embedded in or attached to the product
in order for the product to function, for which the original equipment manufacturer makes
available tools, parts, or documentation to authorized repair providers.

(f) "Documentation" means a manual, diagram, reporting output, service code description,
schematic diagram, or similar information made available by an original equipment
manufacturer to an authorized repair provider to facilitate diagnostic, maintenance, or repair
services for digital electronic equipment new text begin or farm equipment new text end .

(g) "Embedded software" means any programmable instructions provided on firmware
delivered with digital electronic equipment new text begin or farm equipment new text end , or with a part for the
equipment, in order to operate the equipment. Embedded software includes all relevant
patches and fixes made by the manufacturer of the equipment or part in order to operate the
equipment.

(h) new text begin "Equipment" means digital electronic equipment and farm equipment, unless the
context clearly indicates otherwise.
new text end

new text begin (i) new text end "Fair and reasonable terms" means, with respect to:

(1) parts for digital electronic equipment new text begin or farm equipment new text end offered by an original
equipment manufacturer:

(i) costs that are fair to both parties; and

(ii) terms under which an original equipment manufacturer offers the part to an authorized
repair provider and which:

(A) is not conditioned on or imposing a substantial obligation to use or restrict the use
of the part to diagnose, maintain, or repair digital electronic equipment new text begin or farm equipment
new text end sold, leased, or otherwise supplied by the original equipment manufacturer, including a
condition that the owner or independent repair provider become an authorized repair provider
of the original equipment manufacturer; or

(B) a requirement that a part be registered, paired with, or approved by the original
equipment manufacturer or an authorized repair provider before the part is operational or
prohibit an original equipment manufacturer from imposing any additional cost or burden
that is not reasonably necessary or is designed to be an impediment on the owner or
independent repair provider;

(2) tools, software, and documentation for digital electronic equipment offered by an
original equipment manufacturer deleted text begin : deleted text end new text begin ,
new text end

deleted text begin (i) deleted text end costs that are equivalent to the lowest actual cost for which the original equipment
manufacturer offers the tool deleted text begin , deleted text end new text begin or new text end software deleted text begin , or documentation deleted text end to an authorized repair provider,
including any discount, rebate, or other financial incentive offered to an authorized repair
provider; and

deleted text begin (ii) deleted text end new text begin (3) tools, software, and documentation for digital electronic equipment or farm
equipment offered by an original equipment manufacturer, new text end terms that are equivalent to the
most favorable terms under which an original equipment manufacturer offers the tool,
software, or documentation to an authorized repair provider, including the methods and
timeliness of delivery of the tool, software, or documentation, do not impose on an owner
or an independent repair provider:

deleted text begin (A) deleted text end new text begin (i) new text end a substantial obligation to use or restrict the use of the tool, software, or
documentation to diagnose, maintain, or repair digital electronic equipment new text begin or farm
equipment new text end sold, leased, or otherwise supplied by the original equipment manufacturer,
including a condition that the owner or independent repair provider become an authorized
repair provider of the original equipment manufacturer; or

deleted text begin (B) deleted text end new text begin (ii) new text end a requirement that a tool be registered, paired with, or approved by the original
equipment manufacturer or an authorized repair provider before the part or tool is operational;
and

deleted text begin (3) deleted text end new text begin (4) new text end documentation offered by an original equipment manufacturer: that the
documentation is made available by the original equipment manufacturer at no charge,
except that when the documentation is requested in physical printed form, a charge may be
included for the reasonable actual costs of preparing and sending the copy.

new text begin (j) "Farm equipment" has the meaning given in section 325E.061, subdivision 2, except
that farm equipment does not include the equipment described in section 325E.068,
subdivision 2.
new text end

new text begin (k) "Farm equipment manufacturer" means a person, partnership, corporation, association,
or other form of business enterprise engaged in the manufacturing, assembly, or wholesale
distribution of farm equipment. Farm equipment manufacturer includes a successor in
interest of the farm equipment manufacturer, including a purchaser of assets or stock, a
surviving corporation resulting from a merger or liquidation, a receiver or assignee, or a
trustee of the original farm equipment manufacturer.
new text end

deleted text begin (i) deleted text end new text begin (l) new text end "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 providing diagnostic,
maintenance, or repair services for digital electronic equipment new text begin or farm equipment new text end . 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 an arrangement with that original
equipment manufacturer, is considered an independent repair provider for purposes of the
instances the original equipment manufacturer engages in diagnostic, maintenance, or repair
services for digital electronic equipment new text begin or farm equipment new text end that is not manufactured by or
sold under the name of the original equipment manufacturer.

deleted text begin (j) deleted text end new text begin (m) new text end "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.

deleted text begin (k) deleted text end new text begin (n) new text end "Motor vehicle" means a vehicle that is: (1) designed to transport persons or
property on a street or highway; and (2) certified by the manufacturer under (i) all applicable
federal safety and emissions standards, and (ii) all requirements for distribution and sale in
the United States. Motor vehicle does not include a recreational vehicle or an auto home
equipped for habitation.

deleted text begin (l) deleted text end new text begin (o) new text end "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 providing diagnostic, maintenance, or repair services
for motor vehicles or motor vehicle engines pursuant to a franchise agreement.

deleted text begin (m) deleted text end new text begin (p) new text end "Motor vehicle manufacturer" means a business engaged in the business of
manufacturing or assembling new motor vehicles.

deleted text begin (n) deleted text end new text begin (q) new text end "Original equipment manufacturer" means any individual or business that, in the
normal course of business, is engaged in the business of selling or leasing to any individual
or business new digital electronic equipment new text begin or farm equipment new text end manufactured by or on
behalf of the original equipment manufacturer.

deleted text begin (o) deleted text end new text begin (r) new text end "Owner" means an individual or business that owns or leases digital electronic
equipment new text begin or farm equipment new text end purchased or used in Minnesota.

deleted text begin (p) deleted text end new text begin (s) new text end "Part" means any replacement part or assembly of parts, either new or used, made
available by an original equipment manufacturer to authorized repair providers to facilitate
the maintenance or repair of digital electronic equipment new text begin or farm equipment new text end manufactured
or sold by the original equipment manufacturer.

new text begin (t) "Parts pairing" means a manufacturer's use of software to identify component parts
through a unique identifier.
new text end

deleted text begin (q) deleted text end new text begin (u) new text end "Personally identifiable information" means any representation of information
that permits the identity of an individual to whom the information applies to be reasonably
inferred by either direct or indirect means.

new text begin (v) "Proprietary firmware" means permanent software programmed into read-only
memory that the manufacturer has restricted from use, private modification, copying, or
republication.
new text end

deleted text begin (r) deleted text end new text begin (w) new text end "Tool" means any software program, hardware implement, or other apparatus
used for diagnosis, maintenance, or repair of digital electronic equipment new text begin or farm equipment new text end ,
including software or other mechanisms that provide, program, pair a part, calibrate
functionality, or perform any other function required to repair the original equipment or
part back to fully functional condition, including updates.

deleted text begin (s) deleted text end new text begin (x) new text end "Trade secret" has the meaning given in section 325C.01, subdivision 5.

deleted text begin (t) deleted text end new text begin (y) new text end "Video game console" means a computing device, such as a console machine, a
handheld console device, or another device or system, and its components and peripherals,
that is primarily used by consumers for playing video games but which is neither a general
nor an all-purpose computer. A general or all-purpose computer includes but is not limited
to a desktop computer, laptop, tablet, or cell phone.

Sec. 2.

Minnesota Statutes 2023 Supplement, section 325E.72, subdivision 3, is amended
to read:

Subd. 3.

Requirements.

(a) For digital electronic equipment new text begin , farm equipment, new text end and parts
for the equipment sold or used in Minnesota, an original equipment manufacturer must
make available to any independent repair provider or to the owner of digital electronic
equipment new text begin or farm equipment new text end manufactured by or on behalf of, or sold by, the original
equipment manufacturer, on fair and reasonable terms, documentation, parts, and tools,
inclusive of any updates to information or embedded software, for diagnostic, maintenance,
or repair purposes. new text begin Documentation, parts, and tools must be made available either directly
by the original equipment manufacturer or an authorized repair provider or distributor.
new text end Nothing in this section requires an original equipment manufacturer to make available a
part, tools, or documentation if it is no longer available to the original equipment
manufacturer.

(b) Such parts, tools, and documentation shall be made available within 60 days after
the first sale of the digital electronic equipment new text begin or farm equipment new text end in Minnesota.

new text begin (c) A farm equipment manufacturer must make available tools, software, and
documentation for farm equipment to owners at no charge. If a physical tool is requested,
a farm equipment manufacturer may charge a fee to pay for reasonable, actual costs incurred
to prepare and send a physical tool.
new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 325E.72, is amended by adding a
subdivision to read:

new text begin Subd. 3a. new text end

new text begin Prohibitions. new text end

new text begin An original equipment manufacturer must not use parts pairing,
proprietary firmware, or any other mechanism to:
new text end

new text begin (1) prevent the installation or functioning of any otherwise functional part, including a
replacement part or component that is not approved by the manufacturer;
new text end

new text begin (2) inhibit or reduce the functioning of any part, so that replacement by an independent
repair provider or the device owner causes the device to operate with reduced functionality
or performance;
new text end

new text begin (3) create false, misleading, deceptive, or undismissable alerts or warnings about parts;
new text end

new text begin (4) charge additional fees or increased prices for future repairs; or
new text end

new text begin (5) limit who can purchase parts or perform repair services.
new text end

Sec. 4.

Minnesota Statutes 2023 Supplement, section 325E.72, subdivision 5, is amended
to read:

Subd. 5.

Limitations.

(a) Nothing in this section requires an original equipment
manufacturer to divulge a trade secret or license any intellectual property to an owner or
an independent service provider, except as necessary to provide documentation, parts, and
tools on fair and reasonable terms.

(b) Nothing in this section alters the terms of any arrangement described in subdivision
2, paragraph (b), 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 the arrangement, in force between an authorized repair provider
and an original equipment manufacturer. 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.

(c) new text begin Nothing in this section requires that an original equipment manufacturer or authorized
repair provider is held liable for any damage or injury to any farm equipment caused by an
independent repair provider or owner that: (1) occurs during the course of repairing,
diagnosing, or maintaining the farm equipment; and (2) is not attributable to the original
equipment manufacturer or authorized repair provider, unless the failure is attributable to
design or manufacturing defects.
new text end

new text begin (d) Nothing in this section requires a manufacturer to provide any part or equipment
used solely to develop the manufacturer's products.
new text end

new text begin (e) Nothing in this section allows a modification that permanently deactivates a safety
notification system in the course of diagnosing, maintaining, or repairing farm equipment.
new text end

new text begin (f) Nothing in this section allows a modification that causes a piece of equipment to
become permanently out of compliance with any applicable safety or emissions laws.
new text end

new text begin (g) new text end 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).

deleted text begin (d) deleted text end new text begin (h) new text end Nothing in this section requires an original equipment manufacturer or authorized
repair provider to make available any parts, tools, or documentation for the purpose of
making modifications to any digital electronic equipment new text begin or farm equipment new text end .

deleted text begin (e) deleted text end new text begin (i) new text end Nothing in this section shall be construed to require the original equipment
manufacturer to sell service parts if the service parts are no longer provided by the original
equipment manufacturer or made available to authorized repair providers of the original
equipment manufacturer.

deleted text begin (f) deleted text end new text begin (j) new text end Nothing in this section shall require an original manufacturer to make available
special documentation, tools, and parts that would disable or override antitheft security
measures set by the owner of the equipment without the owner's authorization.

deleted text begin (g) deleted text end new text begin (k) new text end Nothing in this section shall apply if the original equipment manufacturer provides
equivalent or better, readily available replacement equipment at no charge to the customer.

deleted text begin (h) deleted text end new text begin (l) new text end Nothing in this section requires the original manufacturer to provide access to
parts, tools, or documentation for work that is required to be done or supervised by an
individual or contractor licensed under chapter 326B or with any individual or contractor
who does not possess the relevant license required for that work.

Sec. 5.

Minnesota Statutes 2023 Supplement, section 325E.72, subdivision 6, is amended
to read:

Subd. 6.

Exclusions.

(a) Nothing in this section 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.

(b) Nothing in this section applies to manufacturers or distributors of a medical device
as defined in the Federal Food, Drug, and Cosmetic Act, 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 the manufacturer or distributor of a medical device offers.

(c) Nothing in this section applies to manufacturers, distributors, importers, or dealers
of any off-road or nonroad equipment, including without limitation deleted text begin farm and utility tractors;
farm implements; farm machinery; deleted text end forestry equipment; industrial equipment; utility
equipment; construction equipment; compact construction equipment; road-building
equipment; electronic vehicle charging infrastructure equipment; mining equipment; turf,
yard, and garden equipment; outdoor power equipment; portable generators; marine,
all-terrain sports, and recreational vehicles, including without limitation racing vehicles;
stand-alone or integrated stationary or mobile internal combustion engines; generator sets
and fuel cell power; power tools; and any tools, technology, attachments, accessories,
components, and repair parts for any of the foregoing.

(d) Nothing in this section shall be construed to require any original equipment
manufacturer or authorized repair provider to make available any parts, tools, or
documentation required for the diagnosis, maintenance, or repair of a video game console
and its components and peripherals.

(e) Nothing in this section applies to an energy storage system, as defined in section
216B.2422, subdivision 1, paragraph (f).

(f) Nothing in this section requires an original equipment manufacturer to make available
parts, documentation, or tools related to cybersecurity, except as necessary for the repair or
maintenance of equipment. Notwithstanding anything in this section to the contrary, an
original equipment manufacturer is not required to make available parts, documentation,
or tools related to cybersecurity which: (1) could reasonably give a recipient or third-party
access to trade secret or personally identifiable information owned or possessed by an
original equipment manufacturer for itself or on behalf of another person; (2) is protected
from disclosure under other laws of this state; or (3) could reasonably be used to compromise
cybersecurity or cybersecurity equipment.

(g) Nothing in this section applies to information technology equipment that is intended
for use in critical infrastructure, as defined in United States Code, title 42, section 5195c(e).

Sec. 6.

Minnesota Statutes 2023 Supplement, section 325E.72, subdivision 7, is amended
to read:

Subd. 7.

Liability, defenses, and warranties.

No original equipment manufacturer or
authorized repair provider shall be liable for any damage or injury caused to any digital
electronic equipment, new text begin farm equipment, new text end person, or property that occurs as a result of repair,
diagnosis, maintenance, or modification performed by an independent repair provider or
owner, including but not limited to any indirect, incidental, special, or consequential damages;
any loss of data, privacy, or profits; or an inability to use, or reduced functionality of, the
digital electronic equipment new text begin or farm equipment new text end .