Colorado Passes First “Right to Repair” Bill

By Greg Aimonette

On April 25, 2023, Colorado became the first state to pass a Consumer Right to Repair Agricultural Equipment Bill, which takes the repair and updating of agricultural equipment away from purely manufacturer authorized repair centers and grants it directly to the farmer and independent repair centers. 

Previously, manufacturers of tractors, trailers, balers, and combines have generally required all repair and software updates directly through a manufacturer-owned or authorized repair center.  This created a manufacturers’ monopoly on documentation, data, tools, and even embedded software necessary to repair equipment or load software updates.  Any undue delay while waiting for a manufacturer-authorized technician can cause huge business losses for farmers, ranchers, agribusiness consortiums, and ultimately their insurers.  Stakes are even higher during crucial harvest or cultivating seasons or during hailstorms, floods, or other drastic weather events.   Colorado House Bill 23-1011 requires the manufacturer to provide parts, embedded software, firmware, tools, and any required documentation to independent repair providers and owners.  Failure by the manufacturer to comply with this requirement is a deceptive trade practice, and any new contractual provision that the manufacturer creates that would limit this obligation is null and void.  The only caveat is that independent repair providers and owners are not authorized to make modifications to the equipment that would make it unsafe or out of compliance with safety laws.  The Bill is intended to allow for a wider market and competition for repair services, decrease the waiting time for repairs to crucial farm equipment, reduce insurance claims for crop loss, and increase the productivity of the American farmer.  Conversely, there may be a rise in contributory negligence against equipment owners for making their own repairs and upgrades as well as an uptick in negligent repair claims due to the creation of new repair services not familiar with the manufacturers’ equipment.

The Colorado Bill becomes enforceable on January 1, 2024.  Similar laws are pending approval in Florida, Maryland, Missouri, Texas, and Vermont.  The effect on agricultural subrogation, product defect, negligent repair, and coverage litigation remains to be seen.