101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB2088

 

Introduced 2/15/2019, by Sen. Laura Fine

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Creates the Digital Fair Repair Act. Provides that original equipment manufacturers shall: (i) make available to any independent repair provider or owner of equipment manufactured by the original equipment manufacturer the same diagnostic and repair documentation in the same manner as that information is made available to the manufacturer's authorized repair providers; and (ii) make available for purchase by the owner, his or her authorized agent, or any independent repair provider, parts, inclusive of any updates to the embedded software of the parts, upon fair and reasonable terms. Requires original equipment manufacturers to make available for purchase by owners and independent repair providers all diagnostic repair tools incorporating the same diagnostic, repair, and remote communications capabilities that the original equipment manufacturer makes available to its own repair or engineering staff or an authorized repair provider. Requires an independent repair provider that purchases or acquires embedded software or service parts to notify the owner of the equipment in writing of certain warranties prior to performing any services on digital electronic equipment. Provides, with one exception, an authorized provider shall have all the rights and remedies provided under the Act. Provides for enforcement by the Attorney General. Authorizes the Attorney General to seek to enjoin violations and to recover civil penalties. Requires the Attorney General to establish an outreach program to inform the public of rights under the Act. Defines terms. Excludes motor vehicle manufacturers. Provides for recovery of damages and attorney's fees. Provides for the protection of trade secrets. Amends the Consumer Fraud and Deceptive Business Practices Act to incorporate a violation of the Digital Fair Repair Act as a violation of that Act. Effective January 1, 2020.


LRB101 09559 JLS 54657 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2088LRB101 09559 JLS 54657 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Digital Fair Repair Act.
 
6    Section 5. Definitions. In this Act:
7    (a) "Authorized repair provider" means an individual or
8business who is unaffiliated with an original equipment
9manufacturer and who has an arrangement with the original
10equipment manufacturer, for a definite or indefinite period,
11under which the original equipment manufacturer grants to the
12individual or business a license to use a trade name, service
13mark, or other proprietary identifier for the purposes of
14offering the services of diagnosis, maintenance, or repair of
15digital electronic equipment under the name of the original
16equipment manufacturer, or other arrangement with the original
17equipment manufacturer to offer such services on behalf of the
18original equipment manufacturer. An original equipment
19manufacturer who offers the services of diagnosis,
20maintenance, or repair of its own digital electronic equipment,
21and who does not have an arrangement described in this
22subsection with an unaffiliated individual or business, shall
23be considered an authorized repair provider with respect to

 

 

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1such equipment.
2    (b) "Digital electronic equipment" or "equipment" means
3any product that depends for its functioning, in whole or in
4part, on digital electronics embedded in or attached to the
5product.
6    (c) "Documentation" means any manual, diagram, reporting
7output, service code description, schematic diagram, or
8similar kinds of information provided to an authorized repair
9provider for purposes of its effecting the services of
10diagnosis, maintenance, or repair of digital electronic
11equipment.
12    (d) "Embedded software" means any programmable
13instructions provided on firmware delivered with digital
14electronic equipment, or with a part for such equipment, for
15purposes of equipment operation, including all relevant
16patches and fixes made by the manufacturer of such equipment or
17part for these purposes.
18    (e) "Fair and reasonable terms" for obtaining a part or
19tool or documentation means at costs and terms, including
20convenience of delivery, and including rights of use,
21equivalent to what is offered by the original equipment
22manufacturer to an authorized repair provider, using the net
23costs that would be incurred by an authorized repair provider
24in obtaining an equivalent part or tool or documentation from
25the original equipment manufacturer, accounting for any
26discounts, rebates, or other incentive programs in arriving at

 

 

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1the actual net costs. For documentation, including any relevant
2updates, "fair and reasonable terms" means at no charge, except
3that, when the documentation is requested in physical printed
4form, a charge may be included for the reasonable actual costs
5of preparing and sending the copy.
6    (f) "Firmware" means a software program or set of
7instructions programmed on digital electronic equipment, or on
8a part for such equipment, to allow the equipment or part to
9communicate with other computer hardware.
10    (g) "Independent repair provider" means an individual or
11business operating in this State, who does not have an
12arrangement described in subsection (a) with an original
13equipment manufacturer, and who is not affiliated with any
14individual or business who has such an arrangement, and who is
15engaged in the services of diagnosis, maintenance, or repair of
16digital electronic equipment, except that an original
17equipment manufacturer or, with respect to that original
18equipment manufacturer, an individual or business who has such
19an arrangement with that original equipment manufacturer, or
20who is affiliated with an individual or business who has such
21an arrangement with that original equipment manufacturer,
22shall be considered an independent repair provider for purposes
23of those instances in which it engages in the services of
24diagnosis, maintenance, or repair of digital electronic
25equipment that is not manufactured by or sold under the name of
26that original equipment manufacturer.

 

 

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1    (h) "Manufacturer of motor vehicle equipment" means a
2business engaged in the business of manufacturing or supplying
3components that are used in the manufacture, maintenance, or
4repair of a motor vehicle.
5    (i) "Motor vehicle" means a vehicle that is designed for
6transporting persons or property on a street or highway and is
7certified by the manufacturer under all applicable federal
8safety and emissions standards and requirements for
9distribution and sale in the United States. "Motor vehicle"
10does not include:
11        (1) a motorcycle; or
12        (2) a recreational vehicle or an auto home equipped for
13    habitation.
14    (j) "Motor vehicle dealer" means an individual or business
15who, in the ordinary course of business, is engaged in the
16business of selling or leasing new motor vehicles to an
17individual or business pursuant to a franchise agreement, has
18obtained a license under the Illinois Vehicle Code, and is
19engaged in the services of diagnosis, maintenance, or repair of
20motor vehicles or motor vehicle engines pursuant to that
21franchise agreement.
22    (k) "Motor vehicle manufacturer" means a business engaged
23in the business of manufacturing or assembling new motor
24vehicles.
25    (l) "Original equipment manufacturer" means a business
26engaged in the business of selling or leasing new digital

 

 

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1electronic equipment manufactured by or on behalf of itself, to
2any individual or business.
3    (m) "Owner" means an individual or business who owns or
4leases digital electronic equipment purchased or used in this
5State.
6    (n) "Part" means any replacement part, either new or used,
7made available by an original equipment manufacturer for
8purposes of effecting the services of maintenance or repair of
9digital electronic equipment manufactured or sold by the
10original equipment manufacturer.
11    (o) "Trade secret" has the meaning given it in 18 U.S.C.
121839.
 
13    Section 10. Requirements.
14    (a) For digital electronic equipment, and parts for such
15equipment, sold or used in this State, an original equipment
16manufacturer shall make available, for purposes of diagnosis,
17maintenance, or repair, to any independent repair provider, or
18to the owner of digital electronic equipment manufactured by or
19on behalf of, or sold by, the original equipment manufacturer,
20on fair and reasonable terms, documentation, parts, and tools,
21inclusive of any updates to information or embedded software.
22Nothing in this Section requires an original equipment
23manufacturer to make available a part if the part is no longer
24available to the original equipment manufacturer.
25    (b) For equipment that contains an electronic security lock

 

 

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1or other security-related function, the original equipment
2manufacturer shall make available to the owner and to
3independent repair providers, on fair and reasonable terms, any
4special documentation, tools, and parts needed to reset the
5lock or function when disabled in the course of diagnosis,
6maintenance, or repair of the equipment. Such documentation,
7tools, and parts may be made available through appropriate
8secure release systems.
 
9    Section 15. Enforcement by Attorney General. Violation of
10any of the provisions of this Act is an unlawful practice under
11the Consumer Fraud and Deceptive Business Practices Act. All
12remedies, penalties, and authority granted to the Attorney
13General by that Act shall be available to him or her for the
14enforcement of this Act.
 
15    Section 20. Limitations.
16    (a) Nothing in this Act shall be construed to require an
17original equipment manufacturer to divulge a trade secret to an
18owner or an independent service provider except as necessary to
19provide documentation, parts, and tools on fair and reasonable
20terms.
21    (b) No provision of this Act shall be construed to alter
22the terms of any arrangement described in subsection (a) of
23Section 5 in force between an authorized repair provider and an
24original equipment manufacturer, including, but not limited

 

 

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1to, the performance or provision of warranty or recall repair
2work by an authorized repair provider on behalf of an original
3equipment manufacturer pursuant to such arrangement, except
4that any provision in such terms that purports to waive, avoid,
5restrict, or limit the original equipment manufacturer's
6obligations to comply with this Act shall be void and
7unenforceable.
8    (c) Nothing in this Act shall be construed to require an
9original equipment manufacturer or an authorized repair
10provider to provide to an owner or independent repair provider
11access to information, other than documentation, that is
12provided by the original equipment manufacturer to an
13authorized repair provider pursuant to the terms of an
14arrangement described in subsection (a) of Section 5.
 
15    Section 25. Exclusions. Nothing in this Act applies to a
16motor vehicle manufacturer, manufacturer of motor vehicle
17equipment, or motor vehicle dealer acting in that capacity, or
18to any product or service of a motor vehicle manufacturer,
19manufacturer of motor vehicle equipment, or motor vehicle
20dealer acting in that capacity.
 
21    Section 30. Applicability. This Act applies with respect to
22equipment sold or in use on or after the effective date of this
23Act.
 

 

 

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1    Section 90. The Consumer Fraud and Deceptive Business
2Practices Act is amended by changing Section 2Z as follows:
 
3    (815 ILCS 505/2Z)  (from Ch. 121 1/2, par. 262Z)
4    Sec. 2Z. Violations of other Acts. Any person who knowingly
5violates the Automotive Repair Act, the Automotive Collision
6Repair Act, the Digital Fair Repair Act, the Home Repair and
7Remodeling Act, the Dance Studio Act, the Physical Fitness
8Services Act, the Hearing Instrument Consumer Protection Act,
9the Illinois Union Label Act, the Installment Sales Contract
10Act, the Job Referral and Job Listing Services Consumer
11Protection Act, the Travel Promotion Consumer Protection Act,
12the Credit Services Organizations Act, the Automatic Telephone
13Dialers Act, the Pay-Per-Call Services Consumer Protection
14Act, the Telephone Solicitations Act, the Illinois Funeral or
15Burial Funds Act, the Cemetery Oversight Act, the Cemetery Care
16Act, the Safe and Hygienic Bed Act, the Illinois Pre-Need
17Cemetery Sales Act, the High Risk Home Loan Act, the Payday
18Loan Reform Act, the Mortgage Rescue Fraud Act, subsection (a)
19or (b) of Section 3-10 of the Cigarette Tax Act, subsection (a)
20or (b) of Section 3-10 of the Cigarette Use Tax Act, the
21Electronic Mail Act, the Internet Caller Identification Act,
22paragraph (6) of subsection (k) of Section 6-305 of the
23Illinois Vehicle Code, Section 11-1431, 18d-115, 18d-120,
2418d-125, 18d-135, 18d-150, or 18d-153 of the Illinois Vehicle
25Code, Article 3 of the Residential Real Property Disclosure

 

 

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1Act, the Automatic Contract Renewal Act, the Reverse Mortgage
2Act, Section 25 of the Youth Mental Health Protection Act, the
3Personal Information Protection Act, or the Student Online
4Personal Protection Act commits an unlawful practice within the
5meaning of this Act.
6(Source: P.A. 99-331, eff. 1-1-16; 99-411, eff. 1-1-16; 99-642,
7eff. 7-28-16; 100-315, eff. 8-24-17; 100-416, eff. 1-1-18;
8100-863, eff. 8-14-18.)
 
9    Section 99. Effective date. This Act takes effect January
101, 2020.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    New Act
4    815 ILCS 505/2Zfrom Ch. 121 1/2, par. 262Z