STAND. COM. REP. NO.186-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 2801




Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii


Your Committee on Transportation, to which was referred H.B. No. 2801 entitled:


begs leave to report as follows:

The purpose of this bill is to regulate warrantors of vehicle protection products.

The National Vehicle Protection Association (NVPA) testified in support of this measure. The Department of Commerce and Consumer Affairs (DCCA) testified in opposition to this measure.

Many antitheft products and theft deterrent devices are currently being sold on the market. These devices are generally not sold to the public directly from the manufacturer but rather, they are sold through automobile dealers. Oftentimes, warranties accompany these devices which provides that the company will back up its warranty by paying a specified, agreed upon, maximum amount for damages incurred by the customer as a result of the failure of the product. However, concerns have been raised that individuals are considering this warranty to be a form of insurance on the vehicle. Moreover, according to NVPA, a lawsuit is currently pending regarding this issue and the legislatures of Texas and New York have attempted to deal with this problem by clarifying that these warranties are not insurance policies.

Your Committee understands the concerns of NVPA, especially with regard to the lawsuit against a producer of these vehicle protection devices. However, concerns were also raised regarding the need for such legislation and whether or not this problem really exists. According to DCCA, no known complaints have been filed with their office against producers of these protection devices. Jurisdiction over the products addressed by this measure and the specific products covered under the definition of "Vehicle Protection Product Warranty" are also issues of concern. Nevertheless, your Committee believes that these types of products and warranties merit further discussion.

Since many of the legal and jurisdictional questions regarding this measure do not fall under the purview of your Committee on Transportation, your Committee respectfully requests that your Committees on Consumer Protection and Commerce and Judiciary and Hawaiian Affairs further scrutinize this issue and the merits of this legislation regarding consumer protection.

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2801 and recommends that it pass Second Reading and be referred to the Committees on Consumer Protection and Commerce and Judiciary and Hawaiian Affairs.


Respectfully submitted on behalf of the members of the Committee on Transportation,