HB3466 100TH GENERAL ASSEMBLY

LRB100 10676 JLS 20900 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3466

Introduced , by Rep. Thomas M. Bennett

SYNOPSIS AS INTRODUCED:

New Act

Creates the Motor Vehicle Repair Fairness Act. Provides that motor vehicle manufacturers must make available to independent repair providers of parts manufactured by such motor vehicle manufacturer, diagnostic and repair documentation, including repair technical updates and updates and corrections to embedded software, in the same manner as the motor vehicle manufacturer makes such diagnostic and repair documentation, including repair technical updates and updates and corrections to embedded software, available to its authorized repair provider. Defines terms. Authorizes the imposition of a $500 civil penalty. Provides that the Attorney General may bring an action to recover the penalty.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Motor Vehicle Repair Fairness Act.

Section 5. Definitions. In this Act:

"Authorized repair provider" means an individual or an entity that has an arrangement for a definite or indefinite period in which a motor vehicle manufacturer grants to a separate individual or entity a license to use a trade name, service mark, or related characteristic for the purposes of offering repair services under the name of the motor vehicle manufacturer.

"Embedded software" means any programmable instructions provided on firmware delivered with the equipment for the purposes of equipment operation, including all relevant patches and fixes made by the original motor vehicle manufacturer for this purpose, including, but not limited to, a basic internal operating system, an internal operating system, a machine code, an assembly code, a root code, and a microcode.

"Fair and reasonable terms" means an equitable price in light of relevant factors including, but not limited to:

(1) the net cost to the authorized repair provider for similar information obtained from an original equipment manufacturer, less any discounts, rebates, or other incentive programs;

(2) the cost to the original equipment manufacturer for preparing and distributing the information, excluding any research and development costs incurred in designing and implementing, upgrading, or altering the product, but including amortized capital costs for the preparation and distribution of the information;

(3) the price charged by other original equipment manufacturers for similar information;

(4) the price charged by original equipment manufacturers for similar information prior to the launch of original equipment manufacturer web sites;

(5) the ability of aftermarket technicians or shops to afford the information;

(6) the means by which the information is distributed;

(7) the extent to which the information is used, which includes the number of users, and frequency, duration, and volume of use; and

(8) inflation.

"Firmware" means a software program or set of instructions programmed on a hardware device to allow the device to communicate with other computer hardware.

"Independent repair provider" means a person or business operating in this State which is not affiliated with a motor vehicle manufacturer or a motor vehicle manufacturer's authorized repair provider, which is engaged in the diagnosis, service, maintenance, or repair of motor vehicle equipment.

"Motor vehicle" means any vehicle that is designed for transporting persons or property on a street or highway and is certified by the motor vehicle manufacturer under all applicable federal safety and emissions standards and requirements for distribution and sale in the United States. Motor vehicle does not include:

(1) a motorcycle; or

(2) a recreational vehicle or manufactured home equipped for Habitation.

"Motor vehicle manufacturer" means any person or business engaged in the business of manufacturing or assembling new motor vehicles.

"Part" means any replacement part, either new or used, made available by the motor vehicle manufacturer to an authorized repair provider for purposes of effecting repair and includes embedded software, firmware, digital electronic, equipment, or a part for such equipment.

"Trade secret" means anything tangible or intangible or electronically stored or kept which constitutes, represents, evidences, or records intellectual property, including secret or confidentially held designs, processes, procedures, formulas, inventions, or improvements, or secret or confidentially held scientific, technical, merchandising, production, financial, business, or management information, or any other trade secret as defined in 18 U.S.C. 1839, as such Section existed on January 1, 2017.

Section 10. Duty of motor vehicle manufacturer.

(a) For parts sold and used in this State, the motor vehicle manufacturer of such part shall make available to any independent repair provider of parts manufactured by such motor vehicle manufacturer, diagnostic and repair documentation, including repair technical updates and updates and corrections to embedded software, for no charge or in the same manner as the motor vehicle manufacturer makes such diagnostic and repair documentation, including repair technical updates and updates and corrections to embedded software, available to its authorized repair provider.

(b) Nothing in this Section requires the motor vehicle manufacturer to sell parts if the parts are no longer available to the original equipment manufacturer or the authorized repair provider of the motor vehicle manufacturer.

(c) Any motor vehicle manufacturer that sells any diagnostic, service, or repair documentation to any independent repair provider in a format that is standardized with other original equipment manufacturers, and on terms and conditions more favorable than the manner and the terms and conditions pursuant to which the authorized repair provider obtains the same diagnostic, service, or repair documentation, shall be prohibited from requiring any authorized repair provider to continue purchasing diagnostic, service, or repair documentation in a proprietary format, unless such proprietary format includes diagnostic, service, or repair documentation or functionality that is not available in such standardized format.

(d) A motor vehicle manufacturer of equipment sold or used in this State shall make available for purchase by independent repair providers all diagnostic repair tools incorporating the same diagnostic, repair, and remote communications capabilities that such motor vehicle manufacturer makes available to its own repair or engineering staff or any authorized repair provider. A motor vehicle manufacturer shall offer such tools for sale to any independent repair provider upon fair and reasonable terms. A motor vehicle manufacturer that provides diagnostic repair documentation to aftermarket diagnostic tool manufacturers, diagnostics providers, or service information publications and systems shall have fully satisfied its obligations under this Section and thereafter not be responsible for the content and functionality of such aftermarket diagnostic tools, diagnostics, or service information systems.

(e) Original motor vehicle manufacturer parts sold or used in this State for the purpose of providing security-related functions may not exclude diagnostic, service, and repair documentation necessary to reset a security-related electronic function from information provided to an independent repair provider. If excluded under this Act, the documentation necessary to reset an immobilizer system or security-related electronic module shall be obtained by an independent repair provider through the appropriate secure data release systems.

Section 15. Trade secrets. Nothing in this Act shall be construed to require a motor vehicle manufacturer to divulge a trade secret.

Section 20. Warranty and recall service. No provision in this Act shall be read, interpreted, or construed to abrogate, interfere with, contradict, or alter the terms of any agreement executed and in force between an authorized repair provider and a motor vehicle manufacturer, including, but not limited to, the performance or provision of warranty or recall repair work by an authorized repair provider on behalf of a motor vehicle manufacturer pursuant to such authorized repair agreement, except that any provision in such an authorized repair agreement that purports to waive, avoid, restrict, or limit a motor vehicle manufacturer's compliance with this Section shall be void and unenforceable.

Section 25. Access to certain non-diagnostic and repair documentation. Nothing in this Act shall be construed to require motor vehicle manufacturers or authorized repair providers to provide independent repair provider access to non-diagnostic and repair documentation provided by a motor vehicle manufacturer to an authorized repair provider pursuant to the terms of an authorizing agreement.

Section 30. Civil penalty. Any motor vehicle manufacturer found in violation of this Act is liable for a civil penalty of not more than $500 for each violation. The penalty may be recovered in a civil action by the Attorney General in the manner authorized under the Consumer Fraud and Deceptive Business Practices Act.