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A07006 Summary:

COSPNSRLupardo, Magnarelli, Glick, Gottfried, Bronson, Rosenthal L, Steck, McDonald, Dickens, Reyes, Simon, Gunther, Seawright, Pheffer Amato, Niou, Colton, Griffin, Fall, Galef, Zinerman, Burke, Hunter, Woerner, Rivera J, Mamdani, Jackson, Forrest, Barron, Thiele, Miller B, Clark, Hevesi, Blankenbush, Jean-Pierre, Perry, Kim, Wallace, Carroll, Lunsford, Burdick, Gallagher, Jacobson, Burgos, Gibbs, Kelles, Gonzalez-Rojas, Zebrowski, Englebright, Stern
MLTSPNSRBraunstein, Davila, De La Rosa
Add §399-nn, Gen Bus L
Relates to the sale of digital electronic equipment; requires original equipment manufacturers to provide diagnostic and repair information.
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A07006 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
  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 infor- mation   PURPOSE OR GENERAL IDEA OF BILL: This bill requires 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. Nothing in this section requires an OEM to make available a part if the part is no longer avail- able to the OEM. For equipment that contains an electronic security lock or other security-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 access and 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. Provides for limitations to the requirements. This section does not require an OEM to divulge a trade secret to an owner or an independent service provider; or alter the terms of any arrangement between =n OEM and authorized repair provider. It does not require on OEM or authorized repair provider to, make available parts, tools, or documentation for making modifications to digital electronic equipment. It also does not require an OEM or authorized repair provider to make available parts, tools, or documentation for certain public safety communications equip- ment used for emergency response or prevention. * any digital electronic equipment whose diagnosis, maintenance, or repair would be inconsistent with or in violation of federal law. * diagnosis, maintenance, or repair of any home appliance with a digital electronic product embedded within it. 4. Provides for specific exclusions from the provisions of the bill including, but not limited to, the following products: * motor vehicles and motor vehicle equipment; * medical devices; and * off road equipment including, but not limited to, farm and utility, forestry, industrial, construction, and mining equipment. 5. Provides that no original equipment manufacturer or authorized repair provider shall be liable for any damage or injury caused to digital electronic equipment by an independent repair provider or owner which occurs during the course of repair, diagnosis, maintenance, or modifica- tion, including but not limited to indirect, incidental, special or consequential damages; any loss of data, privacy or profits; or any, inability to use, or reduced functionality of, the digital electronic equipment. 6. Provides for enforcement by the Attorney General. Section 3. Effective date. This act shall take effect one year after it shall have become a law.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION: This version makes technical clarifications to the bill, including providing that the requirements will apply to products with a value over ten dollars, adjusted annually based on the consumer price index. Anoth- er adds that nothing in the section will require that an OEM or author- ized repair provider make available any parts, tools or documentation if the intended use is for making modifications to digital electronic equipment. Others provide that nothing in the section will require an OEM or authorized repair provider to make available parts, tools or documentation for 1) public safety communications equipment used for emergency response or prevention purposes by an emergency service organ- ization, 2) where it may be in violation of federal law such as with gaming and entertainment consoles, related software, and components, or 3) home appliances with digital electronics embedded within them. Manufacturers, distributors, importers, or dealers of off-road equipment are added to the exclusions, those to whom the requirements would not apply. Amendments also include extending the effective date of the bill from 120 days to one year 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 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 manufacturers. In too many instances,, repairs of digital items are intentionally limited by the manufacturer. Manufacturers will require consumers to pay for repair services exclusively through their repair division or manu- facturer-authorized repair providers. The practices by manufacturers essentially 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 competition 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 envi- ronmental benefits.   PRIOR LEGISLATIVE HISTORY: A7416-A of 2019-20 (Lupardo)   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: This legislation will have no fiscal implications for the State.   EFFECTIVE DATE: This act shall take effect one year after it becomes law.
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