HB1287

SECTION 1. The legislature finds that the vast majority of electronic products available for purchases today are repair monopolized, with tech companies often withholding the information and parts needed to repair, modify, or even recycle their products.

The legislature also find that Hawaii entrepreneurs are capable of offering the same services, and in the interest of business and consumers alike, should be provided this right.

The legislature further finds that the ability to repair electronic equipment rather than replace it would allow residents to save money and reduce waste.

The purpose of this Act is to expand consumer choice by requiring manufacturers of certain electronic products to provide necessary information and parts to allow consumers to either repair their own products or provide the option for local repair businesses to do so.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"CHAPTER

DIGITAL RIGHT TO REPAIR ACT

§ -1 Definitions. As used in this chapter:

"Authorized repair provider" means, with respect to an original equipment manufacturer, an individual or business that is un affiliated with the original equipment manufacturer and that has an intellectual property arrangement with the original equipment manufacturer.

"Authorized repair provider" includes an original equipment manufacturer that offers to provide diagnostic, maintenance, or repair services for digital electronic equipment manufactured by or on behalf of, or sold or otherwise supplied by, an original manufacturer, and that does not have an intellectual property arrangement with an unaffiliated individual or business.

"Digital electronic equipment" or "equipment" means any product that is used or sold in the State and the functioning for which it depends, in whole or in part, on digital electronics embedded in, or attached to, the product.

"Documentation" means any manual, diagram, reporting output, service code description, schematic diagram, or other information provided to an authorized repair provider for use in effecting the provision of diagnostic, maintenance, or repair services for digital electronic equipment.

"Embedded software" means any programmable instructions provided on firmware delivered with digital electronic equipment, or with an application part thereof, for purposes of equipment operation. "Embedded software" includes all relevant patches and fixes to digital electronic equipment, or any application part thereof, made by the original equipment manufacturer for purposes of equipment operation.

"Fair and reasonable terms" with respect to:

(1) Obtaining a part or tool or documentation, means at cost and upon terms, including rights of use, convenience of delivery, and convenience of enabling functionality, that are equivalent to the most favorable costs and terms under which the original equipment manufacturer offers the part, tool, or documentation to an authorized repair provider using:

(A) The net costs that would be incurred by the authorized repair provider in obtaining an equivalent part or tool; or

(B) Documentation from the original equipment manufacturer accounting for any discounts, rebates, or other incentive programs in arriving at the actual net costs;

(2) Documentation requested in physical printed form, including any relevant documentation updates, means only the reasonable actual costs of preparing and sending physical documentation; and

(3) Documentation not requested in physical printed form, including any relevant documentation updates, means at no charge.

"Firmware" means a software program or set of instructions programmed on digital electronic equipment, or any part thereof, to allow the equipment or part to communicate with other computer hardware.

"Independent repair provider:

(1) Means, with respect to an original equipment manufacturer, an individual or business operating in the State, that:

(A) Is engaged in the services of diagnosis, maintenance, or repair of digital electronic equipment;

(B) Does not have an intellectual property arrangement with the original equipment manufacturer of the subject digital electronic equipment; and

(C) Is not affiliated with any individual or business having an intellectual property arrangement with the original equipment manufacturer of the subject digital electronic equipment; and

(2) Includes an original equipment manufacturer or an individual business that:

(A) Has an arrangement with that original equipment manufacturer4 or is affiliated with an individual or business that has an arrangement with that original equipment manufacturer; and

(B) Engages in the services of diagnosis, maintenance, or repair of digital electronic equipment that is not manufactured by or on behalf of, or sold or otherwise supplied by, that original equipment manufacturer.

"Intellectual property arrangement" means an arrangement between an original equipment manufacturer and an authorized repair provider under which the original equipment manufacturer grants to the individual or business a license to use a trade name, service mark, or other proprietary identifier for the purposes of offering to provide diagnostic, maintenance, or repair services for digital electronic equipment manufactured by, or on behalf of, or sold or otherwise supplied by, an original equipment manufacturer.

"Original equipment manufacturer" means a business engaged in the business of selling or leasing to any individual or business new digital electronic equipment manufactured by or on behalf of the manufacturing business.

"Owner" means an individual or business that owns or leases digital electronic information.

"Part" means any new or used replacement part made available by an original equipment manufacturer for purposes of effecting the service of maintenance or repair of digital electronic equipment manufactured by or on behalf of or sold or otherwise supplied by, the original equipment manufacturer.

"Trade secret" shall have the same meaning as in section 482B-12.

§ -2 Requirements. (a) Each original equipment manufacturer shall make available to each applicable owner and independent repair provider, on fair and reasonable terms, documentation, parts, tools, including any updates to information or embedded software, used in the diagnosis, maintenance, or repair of the applicable equipment; provided that nothing in this section shall be construed as requiring an original equipment manufacturer to make available a part that is no longer available to the original equipment manufacturer.

(b) For digital electronic equipment containing an electronic security lock or other security-related function, the original equipment manufacturer shall make available to each applicable owner and independent repair provider, on fair and reasonable terms, any special documentation, tools, and parts, necessary to reset any lock or function that is disabled during the diagnosis, maintenance, or repair of the equipment; provided that the original equipment manufacturer may make available the special documentation, tools, and parts through appropriate secure release systems.

§ -3 Remedies. Any person who violates this chapter shall be deemed to have engaged in an unfair method of competition and unfair or deceptive act or practice in the conduct of any trade or commerce within the meaning of section 480-2.

§ -4 Limitations and exclusions. (a) Nothing in this chapter shall be construed as:

(1) Requiring an original equipment manufacturer to divulge a trade secret to an owner or independent repair provider, except as necessary to provide documentation, parts, and tools on fair and reasonable terms;

(2) Altering the terms of any intellectual property arrangement in force between an authorized repair provider and an original equipment manufacturer, including the performance or provision of warranty or including the performance or provision of warranty or recall repair work by an authorized repair provider on behalf of an original equipment manufacturer pursuant to the arrangement; provided that any provision in the terms that purports to waive, avoid, restrict, or limit the original equipment manufacturer's obligations to comply with this chapter shall be void and unenforceable; or

(3) Requiring an original equipment manufacturer or authorized repair provider to provide to an owner or independent repair provider access to information, other than documentation, that is provided by the original equipment manufacturer to an authorized repair provider pursuant to the terms of an intellectual property arrangement.

(b) Nothing in this chapter shall apply to a motor vehicle manufacturer, motor vehicle equipment manufacturer, or motor vehicle dealer acting in the manufacturer or dealer's capacity as a motor vehicle manufacturer, motor vehicle equipment manufacturer, or motor vehicle dealer.

§ -5 Applicability. This chapter shall apply to equipment sold or in use on or after the effective date of this Act."

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1287
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII