SB 302

SENATE BILL NO. 302
A bill to require certain original equipment manufacturers
and authorized repair providers of agricultural equipment to make diagnostic,
maintenance, and repair parts, tools, and documentation available to
independent repair providers and owners of that equipment; to provide for the
powers and duties of certain state and local governmental officers and
entities; and to provide remedies and civil sanctions.
the people of the state of michigan enact:
Sec. 1. This act may be
cited as the "agricultural equipment repair act".
Sec. 3. As used in this
act:
(a) "Agricultural equipment" means a tractor, trailer, combine, sprayer, tillage implement,
baler, or other personal property, including any digital electronic component
embedded in or attached to the equipment, that is specifically designed to be used
on a farm or ranch and used for planting, growing, or harvesting agricultural
products or used for raising or breeding livestock. Agricultural equipment
includes any mechanical system specifically designed to be used on a farm or
ranch for the conveyance or storage of agriculture or animal products in a raw
or unprocessed state, regardless of whether the mechanical system is affixed to
real property. Agricultural equipment does not include any of the following:
(i) A
self-propelled vehicle designed specifically for the transportation of
individuals or property on a highway or roadway and that is certified by the
manufacturer under any applicable federal safety and emission standards and
requirements for distribution and sale in the United States.
(ii)
An off-highway vehicle.
(iii)
A personal watercraft.
(iv) A
snowmobile.
(v)
Any construction equipment.
(b) "Authorized repair provider" means a person that
has an arrangement with an original equipment manufacturer under which the
original equipment manufacturer grants to the person a license to use a trade
name, service mark, or other proprietary identifier for the purposes of
offering diagnosis, maintenance, or repair services for agricultural equipment
on behalf of the person or the original equipment manufacturer.
(c) "Construction
equipment" means a vehicle or machinery to which all of the following
apply:
(i)
The vehicle or machinery is designed and specifically used for any of the
following:
(A) The grading of a highway or
roadway, the paving of a highway or roadway, earth moving, or other
construction work on a highway or roadway.
(B) The construction of a structure,
including, but not limited to, a dwelling.
(C) The construction or maintenance
of railroad rights-of-way.
(ii)
The vehicle or machinery is only incidentally operated or moved over a highway
or roadway.
(iii)
The vehicle or machinery is not designed or specifically used for the
transportation of individuals or property.
(d) "Documentation"
means a manual, diagram, reporting output, service code description, schematic diagram, library of diagnosed issues, security code, password, or other guidance or
information, whether
in an electronic or a tangible format, that is required to diagnose problems
with, or perform maintenance or repair of, agricultural equipment.
(e) "Fair and reasonable
costs" means all
of the following:
(i)
For a tool that is not software or a part, costs to which both of the following
apply:
(A) The costs are fair to the
original equipment manufacturer or authorized repair provider and the
independent repair provider or owner, considering the market value of the tool
or part in this state, any conditions that are agreed to by the parties, the
promised quality, and timeliness of delivery.
(B) The costs do not discourage or
disincentivize an independent repair provider or owner from making a repair to
agricultural equipment.
(ii)
For a tool that is software, costs that are equivalent to the actual cost for
which an original equipment manufacturer offers the software to an authorized
repair provider, except that the original equipment manufacturer or authorized
repair provider may charge additional fees related to necessary or additional
services utilized in making the software available to the independent repair
provider or owner, including, but not limited to, training or installation
assistance.
(iii)
For documentation, costs that are equivalent to the actual cost for which an
original equipment manufacturer offers the documentation to an authorized
repair provider, unless the documentation is requested in physical form, in
which case the costs may include a fee that is equivalent to the actual cost of
preparing and sending the documentation in physical form.
(f) "Fair and reasonable
terms" means a burden or condition that is necessary for the provision of
the part, tool, or documentation, within the ordinary course of business and
that is not designed to be an impediment on an independent repair provider or
owner. Fair and reasonable terms do not include any of the following:
(i)
Imposing an obligation on an independent repair provider or owner to use
a part, tool, or documentation to diagnose, maintain, or repair agricultural
equipment.
(ii)
Requiring an independent repair provider or owner to become an
authorized repair provider.
(iii)
Requiring a part, tool, or documentation to
be registered with, paired with, or approved by an original equipment
manufacturer or an authorized repair provider before
the use of the part, tool, or documentation.
(iv)
Imposing an additional burden or material change that would adversely affect
the timeliness or method of delivery of a part, tool, or documentation.
(v)
For a tool that is software, imposing an
unreasonable impediment to accessing the software, including, but not
limited to, requiring prior authorization by
the original equipment manufacturer for use of the software or denying a request for the software to be
downloaded or delivered via an alternative method.
(g) "Independent repair
provider" means a person operating in this state that is not an authorized
repair provider and that is engaged in diagnosis, maintenance, or repair
services for agricultural equipment.
(h) "Off-highway vehicle"
means a self-propelled vehicle that is designed to travel on wheels or tracks
in contact with the ground, designed primarily for use off of highways, and
generally and commonly used to transport individuals for recreational purposes.
Off-highway vehicle does not include any of the following:
(i) A
military vehicle.
(ii) A
golf cart.
(iii)
A vehicle designed and used to carry a person with a disability.
(i) "Original equipment
manufacturer" means a person that manufactures agricultural equipment and
sells the equipment to another person.
(j) "Owner" means a
person that owns agricultural equipment. Owner does not include an original
equipment manufacturer.
(k) "Part" means a
component or subcomponent of agricultural equipment that is sold, supplied, or
made available by an original equipment manufacturer and
that is necessary for diagnosing, maintaining, or repairing the agricultural equipment.
(l)
"Snowmobile" means a self-propelled vehicle primarily designed or
altered for travel on snow or ice when supported in part by skis, belts, or
cleats and designed primarily for use off of highways. Snowmobile does not
include machinery used strictly for the grooming of snowmobile trails or ski
slopes.
(m) "Tool" means a
software program, hardware implement, or other apparatus that is necessary for diagnosing, maintaining, or
repairing agricultural equipment, including, but not limited to, software or
other mechanisms that provision, program, or pair a new part, calibrate
functionality, or perform any other function required to bring the product back
to fully functional condition.
(n) "Trade secret"
means that term as defined in section 2 of the uniform trade secrets act, 1998
PA 448, MCL 445.1902.
Sec. 5. (1) Beginning January 1, 2027, and except as otherwise
provided in subsection (2) and section 7, an original equipment
manufacturer or authorized repair provider of
agricultural equipment that is sold and used in
this state shall make available to an independent repair provider or owner, at fair and reasonable costs and on fair and reasonable terms, any part, tool, or documentation that is needed to diagnose, maintain, or repair the
agricultural equipment.
(2) An original equipment
manufacturer may make parts, tools, and documentation available to an
independent repair provider or owner through an authorized repair provider that
consents to sell or make available parts, tools, or documentation on behalf of
the original equipment manufacturer.
Sec.
7. If an original equipment manufacturer enters into and is covered under a
nationwide memorandum of understanding regarding a right to repair agricultural
equipment, the memorandum of understanding governs an owner's right to repair,
or right to engage the services of an independent repair provider for the
repair of, the agricultural equipment of the original equipment manufacturer.
This section does not apply if the original equipment manufacturer violates the
terms of the memorandum of understanding.
Sec. 9. (1) This act does not require an original
equipment manufacturer to do either of the
following:
(a) Divulge a trade secret to an independent service provider
or owner.
(b) Provide a part that is used by the original equipment manufacturer only to design, develop, manufacture, test, or improve its products.
(2) This act does not do any
of the following:
(a) Alter the terms of an arrangement described in section
3(b) between an authorized repair provider and an original equipment
manufacturer, except that a provision of the arrangement
that limits the original equipment manufacturer's or authorized repair provider's obligation to comply
with this act is void and unenforceable.
(b) Authorize a repair to agricultural equipment that
deactivates a safety notification system or that is otherwise illegal.
(c) Authorize access to a tool function that enables an
independent repair provider or owner to change the settings of agricultural
equipment in a manner that brings the equipment out of compliance with an
applicable safety or emission law.
(d) Authorize the evasion of an emission or copyright law.
(3) This act does not apply to
leased or rented agricultural equipment.
Sec.
11. An original equipment manufacturer or authorized repair provider is not
liable under this act for any of the following:
(a) A faulty or otherwise improper
repair provided by an independent repair provider or owner, including, but not
limited to, a faulty or otherwise improper repair that causes any of the
following:
(i)
Any damage to the agricultural equipment during the repair.
(ii)
An inability to use, or a reduced functionality of, any piece of the
agricultural equipment that results from the repair.
(iii)
An injury or death of an individual that results from the repair.
(b) A violation of a state emission
or safety standard resulting from a faulty, illegal, or otherwise improper
repair to agricultural equipment provided by an independent repair provider or
owner.
Sec.
13. (1) If the attorney general has probable cause to believe that an original
equipment manufacturer is engaged in or has engaged in a violation of section
5, and gives notice in accordance with this section, the attorney general may
bring an action in accordance with principles of equity to restrain the
original equipment manufacturer from engaging in the violation of section 5.
(2) The action described in
subsection (1) may be brought in the circuit court of the county where the
defendant is established or conducts business or, if the defendant is not
established in this state, in the circuit court of Ingham County.
(3) The court in an action described
in subsection (1) may award costs to the prevailing party and may require
damages to be awarded to the independent repair provider or owner impacted by
the violation of section 5.
(4) Unless waived by the court on
good cause shown not less than 30 days before the commencement of an action
described in subsection (1), the attorney general shall notify the original
equipment manufacturer of the intended action and give the original equipment
manufacturer an opportunity to cease and desist from the alleged violation of
section 5 or to confer with the attorney general in person, by counsel, or by
other representative, as to the proposed action before the filing date.
(5) An original equipment
manufacturer that knowingly violates the terms of an injunction, order, decree,
or judgment issued under this section is subject to a civil fine of not more
than $25,000.00 for each violation.
(6) For the purpose of this section,
the court issuing an injunction, order, decree, or judgment retains jurisdiction,
the cause must be continued, and the attorney general may petition for recovery
of a civil fine as provided under this section.