04/08/2025 08:00 AM House COMMUNITY & REGIONAL AFFAIRS

                 HB 162-DIGITAL PRODUCT REPAIR                                                                              
                                                                                                                                
8:05:18 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  HIMSCHOOT announced  that the  first order  of business                                                               
would be HOUSE  BILL NO. 162, "An Act relating  to the diagnosis,                                                               
maintenance, and repair of products  that use digital electronics                                                               
to operate;  adding an  unlawful act to  the Alaska  Unfair Trade                                                               
Practices  and  Consumer Protection  Act;  and  providing for  an                                                               
effective date."                                                                                                                
                                                                                                                                
8:06:13 AM                                                                                                                    
                                                                                                                                
KIP ANGAIAK,  Staff, Representative  Maxine Dibert,  Alaska State                                                               
Legislature,  presented  HB  162   on  behalf  of  Representative                                                               
Dibert,  prime   sponsor.    He  shared   the  sponsor  statement                                                               
[included in the committee packet], which read as follows                                                                       
[original punctuation provided]:                                                                                                
                                                                                                                                
     The   inclusion  of   digital   components  in   modern                                                                    
     equipment has  allowed manufacturers to  limit consumer                                                                    
     repair opportunities at the  expense of Alaskans. House                                                                    
     Bill  162 offers  a  balanced  solution, ensuring  fair                                                                    
     access to  the information  and tools needed  to repair                                                                    
     digital   equipment  including   consumer  electronics,                                                                    
     household  appliances,  ATVs,  as well  as  small  snow                                                                    
     removal, lawn care, and farm equipment.                                                                                    
                                                                                                                                
     Manufacturers  have   made  repairs   difficultif   not                                                                    
     impossibleby   withholding   repair  documentation  and                                                                    
     restricting specialized tools  from public access. This                                                                    
     forces Alaskan consumers to  replace rather than repair                                                                    
     their   equipment,   adding   unnecessary   costs   and                                                                    
     inconveniences.  These  burdens  are  even  greater  in                                                                    
     Alaska, where authorized  service providers are scarce,                                                                    
     and shipping  to out-of-state  repair centers  is often                                                                    
     unfeasible. In  rural and remote areas,  equipment like                                                                    
     ATVs, snow  machines, and  small tractors  are critical                                                                    
     to daily  life. The barriers to  self-repair created by                                                                    
     manufacturers  are  not only  costly  but  can also  be                                                                    
     dangerous.                                                                                                                 
                                                                                                                                
     HB 162  will ensure  Alaskans have access  to essential                                                                    
     documentation, tools, and parts  at fair market prices.                                                                    
     This  will  empower  consumers to  repair  rather  than                                                                    
     replace  their  equipment,  saving money  and  reducing                                                                    
     waste.  Additionally,  it  will  foster  a  competitive                                                                    
     marketplace for independent  repair businesses, keeping                                                                    
     jobs and resources in-state.                                                                                               
                                                                                                                                
     Alaskans   are    known   for    self-sufficiency   and                                                                    
     resourcefulness. We don't just like to make things                                                                         
     workwe   need to.  HB 162  supports  this tradition  by                                                                    
     keeping repair options  accessible, reducing waste, and                                                                    
     helping Alaskans maintain the equipment they rely on.                                                                      
                                                                                                                                
     I strongly urge you to support HB 162.                                                                                     
                                                                                                                                
8:08:43 AM                                                                                                                    
                                                                                                                                
MR. ANGAIAK presented the sectional analysis for HB 162                                                                         
[included in the committee packet], which read as follows                                                                       
[original punctuation provided]:                                                                                                
                                                                                                                                
     Section 1. Establishes the short title.                                                                                    
                                                                                                                                
     Section 2.  Amends AS 45.45  Trade Practices  by adding                                                                    
     Article 12A. Digital Product Repair and the following                                                                      
     sections:                                                                                                                  
                                                                                                                                
     Sec.   45.45.800   requires    that   digital   product                                                                    
     manufacturers:                                                                                                             
     • Make  documentation, parts,  and tools  necessary for                                                                    
     diagnosis, maintenance, or repair of digital products                                                                      
     available  to independent  service providers  or owners                                                                    
     their products.                                                                                                            
     •  Include changes  to documentation,  parts and  tools                                                                    
     made through updates, improvements, or repairs.                                                                            
                                                                                                                                
     Sec. 45.45.810  requires digital  product manufacturers                                                                    
     to  make  available  documentation,  tools,  and  parts                                                                    
     needed to  reset security-related features that  may be                                                                    
     disabled during  the diagnosis, maintenance,  or repair                                                                    
     of the                                                                                                                     
     product.                                                                                                                   
                                                                                                                                
     Sec.    45.45.820   states    that   digital    product                                                                    
     manufacturers  don't have  to make  parts available  if                                                                    
     they no longer                                                                                                             
     have access to the parts.                                                                                                  
                                                                                                                                
     Sec. 45.45.830  requires digital  product manufacturers                                                                    
     to make documentation, parts, and tools available to                                                                       
     independent   service  providers   or  owners   of  the                                                                    
     products  at a  reasonable price.  Manufacturers cannot                                                                    
     charge                                                                                                                     
     independent service providers or  owners a price higher                                                                    
     than what they charge authorized service providers for                                                                     
     the same documentation, parts, or tools.                                                                                   
     •  Farm  equipment  is exempted  from  the  independent                                                                    
     service provider requirement.                                                                                              
                                                                                                                                
     Sec.  45.45.840  states  that  an  independent  service                                                                    
     provider:                                                                                                                  
     • Works  in the business of  diagnosis, maintenance, or                                                                    
     repair of digital products in Alaska                                                                                       
     • Is  not a digital product  manufacturer, doesn't have                                                                    
     a contract or license with, and isn't affiliated with                                                                      
     anyone who has  a contract or a license  with a digital                                                                    
     product manufacturer.                                                                                                      
                                                                                                                                
     Sec. 45.45.850  states that a  person is  an authorized                                                                    
     service  provider under  AS 45.45.80045.45.890  if they                                                                    
     have:                                                                                                                      
     •  A  license  to   offer  digital  product  diagnosis,                                                                    
     repair, or  maintenance under the  manufacturer's name,                                                                    
     or                                                                                                                         
     •  A contract  with a  digital product  manufacturer to                                                                    
     provide diagnosis, repair, or maintenance of the                                                                           
     manufacturer's products.                                                                                                   
                                                                                                                                
     A  digital product  manufacturer who  offers diagnosis,                                                                    
     maintenance,  or   repair  of   its  own   products  is                                                                    
     considered  an  authorized  service  provider  for  the                                                                    
     purposes of AS 45.45.800-45.45.890.                                                                                        
                                                                                                                                
     Sec.    45.45.860   states    that   digital    product                                                                    
     manufacturers don't  have to disclose trade  secrets to                                                                    
     independent   service   providers  or   owners   unless                                                                    
     necessary  to  make  documentation,  parts,  and  tools                                                                    
     available.                                                                                                                 
                                                                                                                                
     Sec. 45.45.870 states that:                                                                                                
     •   Agreements   that   waive,   restrict,   or   limit                                                                    
     obligations  of digital  product manufacturers  are not                                                                    
     enforceable.                                                                                                               
     • Digital  product manufacturers cannot be  held liable                                                                    
     for injuries or damages that occur during diagnosis,                                                                       
     maintenance,  or  repair  of  products  by  independent                                                                    
     service providers or owners.                                                                                               
     •   This  act   does  not   apply  to   the  diagnosis,                                                                    
     maintenance, or repair of motor vehicles                                                                                   
                                                                                                                                
     Sec.  45.45.880  states  that  information  other  than                                                                    
     product documentation in a  license or contract between                                                                    
     digital  product manufacturers  and authorized  service                                                                    
     providers  isn't  required  to  be  made  available  to                                                                    
     independent service providers or owners.                                                                                   
                                                                                                                                
     Sec. 45.45.890 provides definitions.                                                                                       
                                                                                                                                
     Section 3. Amends AS  45.50.471(b) by adding violations                                                                    
     of   SB  111   Digital  Product   Repair  statutes   AS                                                                    
     45.45.800-45.45.890 to  the list  of unfair  methods of                                                                    
     competition and unfair or deceptive acts or practices                                                                      
     declared to be unlawful.                                                                                                   
                                                                                                                                
      Section 4. Amends the uncodified law of the State of                                                                      
    Alaska   by    adding   a   section    describing   the                                                                     
     applicability of this Act.                                                                                                 
                                                                                                                                
     Section 5.  Amends the uncodified  law of the  State of                                                                    
     Alaska  by  adding a  section  stating  the Act  cannot                                                                    
     change the  terms of a  license or contract that  is in                                                                    
     effect before the effective date of this Act.                                                                              
                                                                                                                                
      Section 6. Provides the effective date of January 1,                                                                      
     2026.                                                                                                                      
                                                                                                                                
8:13:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOLLAND asked whether  subparagraph (B) on page 5,                                                               
line  6 of  the  bill  includes offroad  vehicles  or whether  it                                                               
strictly applies to motor vehicles.                                                                                             
                                                                                                                                
MR. ANGAIAK  said the bill sponsor  is working on a  carveout for                                                               
all automobiles and most farm equipment dealers.                                                                                
                                                                                                                                
8:15:28 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HIMSCHOOT opened invited testimony.                                                                                    
                                                                                                                                
8:15:47 AM                                                                                                                    
                                                                                                                                
JOE TORMA, General  Manager, Green Star of  Interior Alaska, gave                                                               
background information  on Green Star of  Interior Alaska ("Green                                                               
Star"), a  company that handles  almost all the  electronic waste                                                               
("e-waste")  in the  Fairbanks North  Star  Borough and  Interior                                                               
with  a mission  to  encourage communities  to  reduce waste  and                                                               
increase  recycling.   The amount  of e-waste  is exacerbated  by                                                               
many of the  issues the bill seeks to address.   He elaborated on                                                               
Green Star's triage system for  repurposing certain parts, noting                                                               
that they make  low-cost systems available, such  as computers or                                                               
electronic  devices,  which  are  made  available  to  low-income                                                               
Alaskans and nonprofits  through a technology grant  program.  He                                                               
detailed the  difficulties of consistent, reliable  device repair                                                               
in the  state and urged  Alaska to grant manufacturers  access to                                                               
the  documentation, tools,  parts,  and necessary  authorizations                                                               
that  allow  repairs to  be  written  to  keep these  devices  in                                                               
service.                                                                                                                        
                                                                                                                                
8:21:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOLLAND inquired  about the warranty implications,                                                               
the  value  of  those  warranties, and  how  to  determine  which                                                               
devices to fix.                                                                                                                 
                                                                                                                                
MR.  TORMA said  most  of  the devices  they  see  are not  under                                                               
warranty; nonetheless, in almost  all warranty cases, shipping is                                                               
prohibited from  an organization like  Green Star.  He  shared an                                                               
example of a laptop they attempted to fix.                                                                                      
                                                                                                                                
8:24:52 AM                                                                                                                    
                                                                                                                                
BENJAMIN  HEDGES,  Reuse  Specialist,   Green  Star  of  Interior                                                               
Alaska, said often times, manufacturers  won't honor the warranty                                                               
unless the request is submitted by the original owner.                                                                          
                                                                                                                                
REPRESENTATIVE PRAX  shared his  understanding that  many product                                                               
manufacturers are  concerned about  copyright to  safeguard their                                                               
intellectual property.                                                                                                          
                                                                                                                                
MR.  TORMA said  if a  manufacturer is  determined to  persist in                                                               
exclusive ownership, there still needs to  be a path for users to                                                               
device users  make returns  and honor the  warranty.   Many times                                                               
consumers are not  aware that the device can be  repaired, and if                                                               
it can be, buying a new  product is the easier solution.  Without                                                               
extended  producer  responsibility  (EPR) laws,  the  gaps  would                                                               
continue to exist, he said.                                                                                                     
                                                                                                                                
8:28:02 AM                                                                                                                    
                                                                                                                                
HOWARD  MAXWELL,  Staff,  Representative  Maxine  Dibert,  Alaska                                                               
State Legislature,  noted that often times,  intellectual license                                                               
and  trade secrets  are  protected by  federal  legislation.   He                                                               
stated that  the bill  makes some  protections for  trade secrets                                                               
and emphasized that the goal  is to help everyday Alaskans repair                                                               
their products.                                                                                                                 
                                                                                                                                
8:29:10 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HALL  asked how many  companies in Alaska  do this                                                               
type of work.                                                                                                                   
                                                                                                                                
MR. TORMA responded only Green Star.                                                                                            
                                                                                                                                
8:30:32 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOLLAND  asked whether a manufacturer  would honor                                                               
the warranty on a device that the user attempted to repair.                                                                     
                                                                                                                                
MR. MAXWELL offered to follow  up with the requested information.                                                               
In  response to  a series  of follow  up questions,  he clarified                                                               
that the  bill would  make some allowances  for software  but not                                                               
code.    There  would  also be  carveouts  for  advanced  medical                                                               
devices.  He offered to follow  up on a question about protecting                                                               
access to security  functions and how to  avoid creating security                                                               
vulnerabilities.                                                                                                                
                                                                                                                                
8:37:26 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX opined  that defining "intellectual property"                                                               
would be important.                                                                                                             
                                                                                                                                
MR. MAXWELL pointed  out that without an  actual service provider                                                               
in the state, it's easier and cheaper  for users to buy a new one                                                               
than repair  it, which  may be  intentional on  the manufacturers                                                               
part.                                                                                                                           
                                                                                                                                
8:40:47 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HIMSCHOOT asked what happens with e-waste right now.                                                                   
                                                                                                                                
MR. ANGAIAK offered to follow up with the requested information.                                                                
                                                                                                                                
8:42:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  inquired about the broad  definition of                                                               
"digital equipment"  and how it  would include  offroad vehicles,                                                               
for example.                                                                                                                    
                                                                                                                                
MR. ANGAIAK reiterated  that the sponsor is  working in proximity                                                               
with  Senator  Dunbar's  office  to create  a  carveout  for  all                                                               
automobiles, most farm equipment, and other offroad vehicles.                                                                   
                                                                                                                                
REPRESENTATIVE   RUFFRIDGE   asked   whether   "carveout"   means                                                               
exempting or including them in the bill.                                                                                        
                                                                                                                                
CO-CHAIR  HIMSCHOOT pointed  out  that most  modern vehicles  are                                                               
computerized.                                                                                                                   
                                                                                                                                
MR.  MAXWELL  said currently,  anything  with  a digital  element                                                               
would be  included in the  bill.  All automobiles  are completely                                                               
exempt, but the  idea is to empower local dealers  to sell parts,                                                               
software, and allow people in remote areas to make repairs.                                                                     
                                                                                                                                
8:46:14 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   RUFFRIDGE  sought   to  better   understand  the                                                               
carveouts.                                                                                                                      
                                                                                                                                
MR. MAXWELL  clarified that  the intent is  not to  exclude them.                                                               
Dealers are worried  that they would be "side  stepped" if people                                                               
obtained wholesale parts.  The goal  is to find a compromise that                                                               
allows dealers to make profit  while enabling the everyday person                                                               
to  make  repairs  to  their equipment  without  shipping  to  an                                                               
authorized dealer.                                                                                                              
                                                                                                                                
REPRESENTATIVE  RUFFRIDGE  pointed out  that  there  would be  no                                                               
benefit to being an authorized  service provider if the bill were                                                               
to pass.                                                                                                                        
                                                                                                                                
MR.  MAXWELL said  there's  a  lot of  warranty  work and  repair                                                               
services that  would still be  offered by the  authorized service                                                               
provider.   He pointed out that  in rural Alaska, many  people go                                                               
without critical devices because they're  not empowered to make a                                                               
repair.                                                                                                                         
                                                                                                                                
8:52:38 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HIMSCHOOT shared a personal  anecdote and announced that                                                               
the bill was held over.