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.