STAND. COM. REP. NO.  652-18


Honolulu, Hawaii

                , 2018


RE:   H.B. No. 1620

      H.D. 1





Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii




     Your Committee on Intrastate Commerce, to which was referred H.B. No. 1620 entitled:




begs leave to report as follows:


     The purpose of this measure is to prohibit vehicle insurers from charging insureds an additional fee for repairs made with original equipment manufacturer parts if the vehicle manufacturer recommends original equipment manufacturer parts.


     The Automotive Body and Paint Association of Hawaii, Auto Body Hawaii, Island Fender, Oka's Auto Body, Kuroda Auto Repair, Inc., Hawaii Automobile Dealer's Association, and several concerned individuals supported this bill.  The Department of Commerce and Consumer Affairs, LKQ Corporation, Property Casualty Insurers Association of America, State Farm Mutual Automobile Insurance Company, Hawaii Insurers Council, Auto Care Association, Mascot Auto Parts, Sigs Collision Centers, National Association of Mutual Insurance Companies, Automotive Recyclers Association, and GEICO opposed this measure.  The Prism Group LLC submitted comments on this bill.

     Your Committee has amended this measure by:


     (1)  Deleting the contents of the measure as received by your Committee, and substituting therefor, provisions establishing the Vehicle Repair Practices Task Force to, among other things, address the concerns of consumers with regard to insurance coverage for original equipment manufacturer parts and aftermarket parts used in the repair of their vehicles and submit a report to the Legislature prior to the Regular Session of 2019;


     (2)  Changing its effective date to July 1, 3000, to encourage further discussion; and


     (3)  Making technical, nonsubstantive amendments for clarity, consistency, and style. 


     As affirmed by the record of votes of the members of your Committee on Intrastate Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1620, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1620, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.



Respectfully submitted on behalf of the members of the Committee on Intrastate Commerce,