87R9784 JES-D By: Meza H.B. No. 4063 A BILL TO BE ENTITLED AN ACT relating to the diagnosis, maintenance, and repair of electronics-enabled heavy equipment. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is amended by adding Chapter 113 to read as follows: CHAPTER 113. DIAGNOSIS, MAINTENANCE, AND REPAIR OF ELECTRONICS-ENABLED HEAVY EQUIPMENT Sec. 113.001. DEFINITIONS. In this chapter: (1) "Authorized repair provider" means an individual or business entity that is not an affiliate of but has an arrangement with an original equipment manufacturer: (A) under which the original equipment manufacturer grants to the individual or business entity a license to use a trade name, service mark, or other proprietary identifier for the purpose of offering diagnosis, maintenance, or repair services for electronics-enabled heavy equipment under the name of the original equipment manufacturer; or (B) to offer diagnosis, maintenance, or repair for electronics-enabled heavy equipment on behalf of the original equipment manufacturer. (2) "Documentation" means any manual, diagram, reporting output, service code description, schematic, or other guidance or information used in the diagnosis, maintenance, or repair of electronics-enabled heavy equipment. (3) "Electronics-enabled heavy equipment" means heavy equipment that, to function, depends wholly or partly on digital electronics embedded in or attached to the equipment. (4) "Embedded software" means any programmable instructions provided on firmware that is delivered with electronics-enabled heavy equipment or with a replacement part for that equipment for the purpose of equipment operation, including all relevant patches and fixes made by the original equipment manufacturer of the equipment or replacement part for that purpose. (5) "Fair and reasonable terms" means: (A) making a part or tool available under costs and terms equivalent to the most favorable cost and terms offered to an original equipment manufacturer's authorized repair provider for obtaining an equivalent part or tool, accounting for any discounts, rebates, or other incentive program offered to the authorized repair provider; and (B) making documentation available at no cost, except that an original equipment manufacturer may charge the reasonable actual cost of preparing and sending a copy of the documentation when the documentation is requested in physical printed form. (6) "Firmware" means a software program or set of instructions programmed on electronics-enabled heavy equipment or on a replacement part for the equipment that allows the equipment or replacement part to communicate with itself or other computer hardware. (7) "Heavy equipment" has the meaning assigned by Section 23.1241, Tax Code. (8) "Independent repair provider" means an individual or business entity operating in this state who does not, on the individual's or entity's own behalf or through an affiliate, have an arrangement with an original equipment manufacturer as described by Subdivision (1) and who is engaged in diagnosis, maintenance, or repair of electronics-enabled heavy equipment. (9) "Original equipment manufacturer" means a business entity that sells, leases, or supplies new electronics-enabled heavy equipment. (10) "Owner" means an individual or business entity who owns or leases electronics-enabled heavy equipment purchased or used in this state. (11) "Replacement part" means a new or used replacement part made available by the original equipment manufacturer for the purpose of maintenance or repair of electronics-enabled heavy equipment manufactured, sold, or supplied by the original equipment manufacturer. (12) "Tool" means any software program, including embedded software, hardware implement, or other apparatus used for diagnosis, maintenance, or repair of electronics-enabled heavy equipment, including software or another mechanism that: (A) provisions, programs, or pairs a new part; (B) calibrates functionality; or (C) performs any other function required to restore the equipment to fully functional condition. (13) "Trade secret" has the meaning assigned by 18 U.S.C. Section 1839, as that section existed on January 1, 2021. Sec. 113.002. REQUIREMENTS FOR ORIGINAL EQUIPMENT MANUFACTURERS. (a) For electronics-enabled heavy equipment, including parts for that equipment, sold or used in this state, the original equipment manufacturer of the equipment or part shall make available on fair and reasonable terms to any independent repair provider or to an owner of electronics-enabled heavy equipment manufactured by or on behalf of, sold by, or supplied by the original equipment manufacturer: (1) documentation, replacement parts, and tools; and (2) for equipment containing an electronic security lock or other security-related function, any special documentation, replacement part, or tool needed to disable and reset the lock or function when disabled in the course of diagnosis, maintenance, or repair of the equipment. (b) An original equipment manufacturer may make available the documentation, replacement part, or tool under Subsection (a)(2) through an appropriate secure release system. Sec. 113.003. CONSTRUCTION OF CHAPTER. Nothing in this chapter may be construed to: (1) require an original equipment manufacturer to divulge a trade secret to an owner or an independent service provider except as necessary to provide documentation, replacement parts, and tools on fair and reasonable terms as provided by this chapter; (2) alter the terms of an arrangement described by Section 113.001(1) between an authorized repair provider and original equipment manufacturer, except that any provision in an agreement between an authorized repair provider and original equipment manufacturer that purports to waive, avoid, restrict, or limit the original equipment manufacturer's obligation to comply with this chapter is void and unenforceable; (3) require an authorized repair provider to make documentation, parts, or tools available on fair and reasonable terms; or (4) allow: (A) modifications to electronics-enabled heavy equipment that deactivate safety notification systems; or (B) noncompliance with applicable law, including federal emissions laws, copyright laws, and occupational safety laws prohibiting certain modifications to heavy equipment. Sec. 113.004. DECEPTIVE TRADE PRACTICE. A violation of this chapter is a deceptive trade practice in addition to the practices described by Subchapter E, Chapter 17, and is actionable under that subchapter. SECTION 2. To the extent of a conflict between Chapter 113, Business & Commerce Code, as added by this Act, and a provision of an agreement between an authorized repair provider and original equipment manufacturer entered into before the effective date of this Act, the provision of the agreement prevails. SECTION 3. This Act takes effect September 1, 2021.