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A07416 Summary:

BILL NOA07416A
 
SAME ASSAME AS S06309
 
SPONSORLupardo (MS)
 
COSPNSRLentol, Schimminger, D'Urso, Ortiz, Dickens, Reyes, Crouch, Magnarelli, Glick, Simon, Gunther, Blake, Gottfried, Ashby, Seawright, McDonough, Miller B, Pheffer Amato, Weprin, Steck, Brabenec, Mosley, Rosenthal L, Niou, Colton, Fahy, Griffin, Fall, McDonald, Galef
 
MLTSPNSRBraunstein, Cook, De La Rosa, Englebright, Giglio, Simotas
 
Add §399-nn, Gen Bus L
 
Relates to the sale of digital electronic equipment and requires original equipment manufacturers to provide diagnostic and repair information.
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A07416 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7416A
 
SPONSOR: Lupardo (MS)
  TITLE OF BILL: An act to amend the general business law, in relation to the sale of digital electronic equipment and providing diagnostic and repair information   PURPOSE OR GENERAL IDEA OF BILL: This bill require original equipment manufacturers (OEM) to make diag- nostic and repair information for digital electronic parts and equipment available to independent repair providers and consumers if such parts and repair information are also available to OEM authorized repair providers.   SUMMARY OF PROVISIONS: Section 1. Titled "Digital Fair Repair Act" Section 2. Adds a new § 399-nn of the General Business Law. 1. Definitions 2. Requires OEMs to make available, for purposes of diagnosis, mainte- nance, or repair, to any independent repair provider, or to the owner of digital electronic equipment manufactured by or on behalf of, or sold by, the OEM, on fair and reasonable terms, documentation, parts, and tools, inclusive of any updates to information or embedded software. Nothing in this section requires an OEM to make available a part if the part is no longer available to the OEM. For equipment that contains an electronic security lock or other securi- ty-related function, the OEM shall 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. Such documentation, tools, and parts may be made available through appropriate secure release systems. 3. Does not require an OEM to divulge a trade secret to an owner or an independent service provider. Does not alter the terms of any arrange- ment between and OEM and authorized repair provider. Does not require an OEM of a medical device to comply with any provision that is not permit- ted under federal law. 4. Excludes motor vehicle manufacturers, manufacturer of motor vehicle equipment, or motor vehicle dealers and medical devices or a digital electronic product or embedded software found in medical settings. 5. Provides for enforcement by the Attorney General. Limits the civil penalty to $500 per violation. Section 3. Applicability. This act applies with respect to equipment sold or in use on or after the effective date of this act. Section 4. Effective date. This act shall take effect on the one hundred and twentieth day after it shall have become a law.   JUSTIFICATION: This bill will protect consumers from the monopolistic practices of digital electronics manufacturers. This legislation will require manufacturers to make non-trade secret diagnostic and repair information available for sale to third party repairers. Nothing prevents third party repairers from being technically competent to complete digital repairs other than the lack of information being withheld by manufactur- ers. In too many instances, repairs of digital items are intentionally limit- ed by the manufacturer. Manufacturers will require consumers to pay for repair services exclusively through their repair division or manufactur- er-authorized repair providers. The practices by manufacturers essen- tially create a monopoly on these repair services. These limited authorized channels result in inflated, high repair prices, poor service or non-existent service in rural areas and unnecessarily high turnover rates for electronic products. Another concern is the significant amount of electronic waste created by the inability to affordably repair broken electronics. Lack of competi- tion in the digital repair industry creates high costs for consumers, businesses, and government operations, limits used equipment markets and results in the early retirement of equipment with a remaining useful life. This bill will open the digital repair market up to competition and all its consumer, entrepreneurial and environmental benefits.   PRIOR LEGISLATIVE HISTORY: Formerly A-8192 (Morelle) of 2017-18, Died in Consumer Protection Committee. Formerly A-6068 (Morelle) of 2015-16: Died in Consumer Protection Committee.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: This legislation will have no fiscal implications for the State.   EFFECTIVE DATE: This act shall take effect on the 120th day after it becomes law.
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