NC
North Carolina House Bill H938

North Carolina 2025-2026 Regular Session

North Carolina House Bill H938 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-H 1
4-HOUSE BILL 938
3+H D
4+HOUSE BILL DRH40498-NH-167
5+
56
67
78 Short Title: Right to Repair Digital Electronics Act. (Public)
8-Sponsors: Representatives Longest, Belk, T. Brown, and Pittman (Primary Sponsors).
9-For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10-Referred to: Rules, Calendar, and Operations of the House
11-April 14, 2025
12-*H938 -v-1*
9+Sponsors: Representative Longest.
10+Referred to:
11+
12+*DRH40498 -NH-167*
1313 A BILL TO BE ENTITLED 1
1414 AN ACT ESTABLISHING FAIR REPAIR REQUIREMENTS FOR MANUFACTURERS OF 2
1515 DIGITAL ELECTRONIC PRODUCTS . 3
1616 The General Assembly of North Carolina enacts: 4
1717 SECTION 1. Chapter 75 of the General Statutes is amended by adding a new Article 5
1818 to read: 6
1919 "Article 9. 7
2020 "Fair Repair Requirements Act. 8
2121 "§ 75-150. Definitions. 9
2222 The following definitions apply in this Article: 10
2323 (1) Authorized repair provider. – An oral or written arrangement for a definite or 11
2424 indefinite period in which a manufacturer or distributor transfers to a separate 12
2525 business organization or individual license to use a trade name, service mark, 13
2626 or relative characteristic for the purposes of offering repair services under the 14
2727 name of the manufacturer. 15
2828 (2) Digital electronic product. – A part or machine containing a microprocessor 16
2929 originally manufactured for distribution and sale in the United States. 17
3030 (3) Documentation. – Manuals, diagrams, reporting output, or service code 18
3131 descriptions provided to the authorized repair provider for the purposes of 19
3232 repair. 20
3333 (4) Embedded software. – Programmable instructions provided on firmware 21
3434 delivered with the digital electronic product for the purposes of product 22
3535 operation, including all relevant patches and fixes made by the manufacturer 23
3636 for this purpose, including, but not limited to, "basic internal operating 24
3737 system," "internal operating system," "machine code," "assembly code," "root 25
3838 code," and "microcode." 26
3939 (5) Fair and reasonable terms. – An equitable price in light of relevant factors, 27
4040 including all of the following: 28
4141 a. The net cost to the authorized repair provider for similar parts obtained 29
4242 from manufacturers, less any discounts, rebates, or other incentive 30
4343 programs. 31
4444 b. The cost to the manufacturer for preparing and distributing the parts 32
4545 or product, excluding any research and development costs incurred in 33
46-designing and implementing, upgrading, or altering the product, but 34 General Assembly Of North Carolina Session 2025
47-Page 2 House Bill 938-First Edition
48-including amortized capital costs for the preparation and distribution 1
49-of the parts. 2
50-c. The price charged by other manufacturers for similar parts or products. 3
51-(6) Independent repair provider. – An individual or business operating in the State 4
52-that is not affiliated with a manufacturer or a manufacturer's authorized dealer 5
53-of a digital electronic product that is engaged in the diagnosis, service, 6
54-maintenance, or repair of a digital electronic product. A manufacturer's 7
55-authorized dealer shall be considered an independent repair provider when the 8
56-dealer engages in the diagnosis, service, maintenance, or repair of a digital 9
57-electronic product that is not affiliated with the manufacturer. 10
58-(7) Manufacturer. – An individual or business who, in the ordinary course of its 11
59-business, is engaged in the business of selling or leasing new digital electronic 12
60-products to consumers or other end users and is engaged in the diagnosis, 13
61-service, maintenance, or repair of that product. 14
62-(8) Owner. – An individual or business who lawfully acquires a digital electronic 15
63-product purchased or used in the State. 16
64-(9) Remote diagnostics. – A remote data transfer function between a digital 17
65-electronic product and a provider of repair services, including for purposes of 18
66-diagnostics, settings controls, or location identification. 19
67-(10) Service parts. – Replacement parts, either new or used, made available by the 20
68-manufacturer to the authorized repair provider for the purposes of repair. 21
69-(11) Trade secret. – Anything tangible or intangible or electronically stored or kept 22
70-that constitutes, represents, evidences, or records intellectual property, 23
71-including secret or confidentially held designs, processes, procedures, 24
72-formulas, inventions or improvements or secrets of confidentially held 25
73-scientific, technical, merchandising, production, financial, business or 26
74-management information, or anything within the definition of 18 U.S.C. § 27
75-1839(3). 28
76-"§ 75-151. Fair repair requirements. 29
77-(a) Manufacturers of digital electronic products sold or used in this State are required to 30
78-do all of the following: 31
79-(1) Make available to independent repair facilities or owners of products 32
80-manufactured by the manufacturer diagnostic and repair information, 33
81-including repair technical updates, diagnostic software, service access 34
82-passwords, updates and corrections to firmware, and related documentation, 35
83-free of charge and in the same manner the manufacturer makes available to its 36
84-authorized repair providers. 37
85-(2) Make available for purchase by the product owner, or the authorized agent of 38
86-the owner, service parts, including updates to the firmware of the parts, for 39
87-purchase upon fair and reasonable terms. Nothing in this section requires the 40
88-manufacturer to sell service parts if the service parts are no longer available 41
89-to the manufacturer or the authorized repair channel of the manufacturer. 42
90-(b) Manufacturers that sell diagnostic, service, or repair information to an independent 43
91-repair provider or a third-party provider in a format that is standardized with other manufacturers, 44
92-and on terms and conditions more favorable than the manner and the terms and conditions 45
93-pursuant to which an authorized repair provider obtains the same diagnostic, service, or repair 46
94-information, are prohibited from requiring an authorized repair provider to continue purchasing 47
95-diagnostic, service, or repair information in a proprietary format, unless the proprietary format 48
96-includes diagnostic, service, repair, or dealership operations information or functionality that is 49
97-not available in a standardized format. 50 General Assembly Of North Carolina Session 2025
98-House Bill 938-First Edition Page 3
99-(c) Manufacturers of digital electronic products sold or used in this State shall make 1
100-available for purchase by owners and independent repair facilities all diagnostic repair tools, 2
101-incorporating the same diagnostic repair and remote diagnostic capabilities that the manufacturer 3
102-makes available to its own repair or engineering staff or any authorized repair providers, upon 4
103-fair and reasonable terms. 5
104-(d) Manufacturers that provide repair information to aftermarket tool, diagnostics, or 6
105-third-party service information publications and systems have fully satisfied their obligations 7
106-under this section and thereafter are not responsible for the content and functionality of 8
107-aftermarket diagnostic tools or service information systems. 9
108-(e) Manufacturers of digital electronic products sold or used in the State for the purposes 10
109-of providing security-related functions may not exclude diagnostic, service, and repair 11
110-information necessary to reset a security-related electronic function from information provided 12
111-to owners and independent repair facilities. If necessary for security purposes, manufacturers 13
112-may provide information necessary to reset and unlock system or security-related electronic 14
113-modules to owners and independent repair facilities through an appropriate secure data release 15
114-system. 16
115-"§ 75-152. No requirement to divulge trade secret. 17
116-This Article does not require the manufacturer to divulge a trade secret. 18
117-"§ 75-153. No abrogation of contract. 19
118-This Article shall not be interpreted or construed to abrogate, interfere with, contradict, or 20
119-alter the terms of an agreement executed between an authorized repair provider and a 21
120-manufacturer, including, but not limited to, performing warranty or recall repair work by an 22
121-authorized repair provider on behalf of a manufacturer pursuant to the authorized repair 23
122-agreement. Except in the case of a dispute arising between a manufacturer and its authorized 24
123-repair provider related to either party's compliance with an existing repair agreement, an 25
124-authorized repair provider has all of the rights and remedies provided in this section. 26
125-"§ 75-154. No access to certain information. 27
126-This Article does not require manufacturers or authorized repair providers to provide an 28
127-owner or independent repair provider access to nondiagnostic and nonrepair information 29
128-provided by a manufacturer to an authorized repair provider pursuant to the terms of an 30
129-authorizing agreement. 31
130-"§ 75-155. Right to cure. 32
131-(a) An independent repair provider or owner who believes that a manufacturer has failed 33
132-to provide information, including documentation, updates to firmware, safety and security 34
133-corrections, diagnostics, documentation, or a tool required by this section, must notify the 35
134-manufacturer in writing and give the manufacturer 30 days from the time the manufacturer 36
135-receives the complaint to cure the failure. If the manufacturer cures the complaint within 30 days, 37
136-damages are limited to actual damages in any subsequent litigation. 38
137-(b) If the manufacturer fails to respond to the notice provided in subsection (a) of this 39
138-section, or if an independent repair facility or owner is not satisfied with the manufacturer's cure, 40
139-the independent repair facility or owner may file a complaint in district court. The complaint 41
140-must include all of the following: 42
141-(1) Written information confirming that the complainant has attempted to acquire 43
142-and use, through the then-available standard support function provided by the 44
143-manufacturer, all relevant diagnostics, tools, service parts, documentation, 45
144-and updates to embedded software, including communication with customer 46
145-assistance via the manufacturer's then-standard process, if made available by 47
146-the manufacturer. 48
147-(2) Evidence of manufacturer notification as required in subsection (a) of this 49
148-section." 50
149-SECTION 2. This act becomes effective October 1, 2025. 51
46+designing and implementing, upgrading, or altering the product, but 34
47+including amortized capital costs for the preparation and distribution 35
48+of the parts. 36
49+H.B. 938
50+Apr 10, 2025
51+HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
52+Page 2 DRH40498-NH-167
53+c. The price charged by other manufacturers for similar parts or products. 1
54+(6) Independent repair provider. – An individual or business operating in the State 2
55+that is not affiliated with a manufacturer or a manufacturer's authorized dealer 3
56+of a digital electronic product that is engaged in the diagnosis, service, 4
57+maintenance, or repair of a digital electronic product. A manufacturer's 5
58+authorized dealer shall be considered an independent repair provider when the 6
59+dealer engages in the diagnosis, service, maintenance, or repair of a digital 7
60+electronic product that is not affiliated with the manufacturer. 8
61+(7) Manufacturer. – An individual or business who, in the ordinary course of its 9
62+business, is engaged in the business of selling or leasing new digital electronic 10
63+products to consumers or other end users and is engaged in the diagnosis, 11
64+service, maintenance, or repair of that product. 12
65+(8) Owner. – An individual or business who lawfully acquires a digital electronic 13
66+product purchased or used in the State. 14
67+(9) Remote diagnostics. – A remote data transfer function between a digital 15
68+electronic product and a provider of repair services, including for purposes of 16
69+diagnostics, settings controls, or location identification. 17
70+(10) Service parts. – Replacement parts, either new or used, made available by the 18
71+manufacturer to the authorized repair provider for the purposes of repair. 19
72+(11) Trade secret. – Anything tangible or intangible or electronically stored or kept 20
73+that constitutes, represents, evidences, or records intellectual property, 21
74+including secret or confidentially held designs, processes, procedures, 22
75+formulas, inventions or improvements or secrets of confidentially held 23
76+scientific, technical, merchandising, production, financial, business or 24
77+management information, or anything within the definition of 18 U.S.C. § 25
78+1839(3). 26
79+"§ 75-151. Fair repair requirements. 27
80+(a) Manufacturers of digital electronic products sold or used in this State are required to 28
81+do all of the following: 29
82+(1) Make available to independent repair facilities or owners of products 30
83+manufactured by the manufacturer diagnostic and repair information, 31
84+including repair technical updates, diagnostic software, service access 32
85+passwords, updates and corrections to firmware, and related documentation, 33
86+free of charge and in the same manner the manufacturer makes available to its 34
87+authorized repair providers. 35
88+(2) Make available for purchase by the product owner, or the authorized agent of 36
89+the owner, service parts, including updates to the firmware of the parts, for 37
90+purchase upon fair and reasonable terms. Nothing in this section requires the 38
91+manufacturer to sell service parts if the service parts are no longer available 39
92+to the manufacturer or the authorized repair channel of the manufacturer. 40
93+(b) Manufacturers that sell diagnostic, service, or repair information to an independent 41
94+repair provider or a third-party provider in a format that is standardized with other manufacturers, 42
95+and on terms and conditions more favorable than the manner and the terms and conditions 43
96+pursuant to which an authorized repair provider obtains the same diagnostic, service, or repair 44
97+information, are prohibited from requiring an authorized repair provider to continue purchasing 45
98+diagnostic, service, or repair information in a proprietary format, unless the proprietary format 46
99+includes diagnostic, service, repair, or dealership operations information or functionality that is 47
100+not available in a standardized format. 48
101+(c) Manufacturers of digital electronic products sold or used in this State shall make 49
102+available for purchase by owners and independent repair facilities all diagnostic repair tools, 50
103+incorporating the same diagnostic repair and remote diagnostic capabilities that the manufacturer 51 General Assembly Of North Carolina Session 2025
104+DRH40498-NH-167 Page 3
105+makes available to its own repair or engineering staff or any authorized repair providers, upon 1
106+fair and reasonable terms. 2
107+(d) Manufacturers that provide repair information to aftermarket tool, diagnostics, or 3
108+third-party service information publications and systems have fully satisfied their obligations 4
109+under this section and thereafter are not responsible for the content and functionality of 5
110+aftermarket diagnostic tools or service information systems. 6
111+(e) Manufacturers of digital electronic products sold or used in the State for the purposes 7
112+of providing security-related functions may not exclude diagnostic, service, and repair 8
113+information necessary to reset a security-related electronic function from information provided 9
114+to owners and independent repair facilities. If necessary for security purposes, manufacturers 10
115+may provide information necessary to reset and unlock system or security-related electronic 11
116+modules to owners and independent repair facilities through an appropriate secure data release 12
117+system. 13
118+"§ 75-152. No requirement to divulge trade secret. 14
119+This Article does not require the manufacturer to divulge a trade secret. 15
120+"§ 75-153. No abrogation of contract. 16
121+This Article shall not be interpreted or construed to abrogate, interfere with, contradict, or 17
122+alter the terms of an agreement executed between an authorized repair provider and a 18
123+manufacturer, including, but not limited to, performing warranty or recall repair work by an 19
124+authorized repair provider on behalf of a manufacturer pursuant to the authorized repair 20
125+agreement. Except in the case of a dispute arising between a manufacturer and its authorized 21
126+repair provider related to either party's compliance with an existing repair agreement, an 22
127+authorized repair provider has all of the rights and remedies provided in this section. 23
128+"§ 75-154. No access to certain information. 24
129+This Article does not require manufacturers or authorized repair providers to provide an 25
130+owner or independent repair provider access to nondiagnostic and nonrepair information 26
131+provided by a manufacturer to an authorized repair provider pursuant to the terms of an 27
132+authorizing agreement. 28
133+"§ 75-155. Right to cure. 29
134+(a) An independent repair provider or owner who believes that a manufacturer has failed 30
135+to provide information, including documentation, updates to firmware, safety and security 31
136+corrections, diagnostics, documentation, or a tool required by this section, must notify the 32
137+manufacturer in writing and give the manufacturer 30 days from the time the manufacturer 33
138+receives the complaint to cure the failure. If the manufacturer cures the complaint within 30 days, 34
139+damages are limited to actual damages in any subsequent litigation. 35
140+(b) If the manufacturer fails to respond to the notice provided in subsection (a) of this 36
141+section, or if an independent repair facility or owner is not satisfied with the manufacturer's cure, 37
142+the independent repair facility or owner may file a complaint in district court. The complaint 38
143+must include all of the following: 39
144+(1) Written information confirming that the complainant has attempted to acquire 40
145+and use, through the then-available standard support function provided by the 41
146+manufacturer, all relevant diagnostics, tools, service parts, documentation, 42
147+and updates to embedded software, including communication with customer 43
148+assistance via the manufacturer's then-standard process, if made available by 44
149+the manufacturer. 45
150+(2) Evidence of manufacturer notification as required in subsection (a) of this 46
151+section." 47
152+SECTION 2. This act becomes effective October 1, 2025. 48