HOUSE OF REPRESENTATIVES
THIRTIETH LEGISLATURE, 2019
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO SERVICE CONTRACTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 481X-1, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) This chapter shall not apply to:
(1) Express or implied warranties;
(3) Agreements issued by automobile clubs; and
(3)] (4) Warranties, service contracts, and maintenance
agreements offered by public utilities on their transmission devices to the
extent they are regulated by the public utilities commission or the department
of commerce and consumer affairs."
SECTION 2. Section 481X-2, Hawaii Revised Statutes, is amended as follows:
1. By adding two new definitions to be appropriately inserted and to read:
""Automobile club" means a legal entity that, in consideration of dues, assessments, or periodic payments of money, promises its members or subscribers to assist them in matters relating to motor travel or the operation, use, or maintenance of a motor vehicle by supplying services that may include, but are not limited to, towing service and emergency road service.
"Road hazard" means a hazard that is encountered while driving a motor vehicle, which may include but not be limited to potholes, rocks, wood debris, metal parts, glass, plastic, curbs, or composite scraps."
2. By amending the definition of "service contract" to read:
means a contract or agreement for a separately stated consideration and a
(1) To perform
or indemnify the repair, replacement, or maintenance of property for
operational or structure failure due either to a defect in materials or
artisanship, or to normal wear and tear, with or without additional provision
for incidental payment or indemnity under limited circumstances, including but
not limited to towing, rental, and emergency road service[
(2) For performance of one or more of the following services:
(A) The repair or replacement of tires or wheels on a motor vehicle damaged as a result of coming into contact with a road hazard;
(B) The removal of dents, dings, or creases on a motor vehicle that can be repaired using the process of paintless dent removal without affecting the existing paint finish and without replacing vehicle body panels, sanding, bonding, or painting;
(C) The repair of chips or cracks in a motor vehicle windshield or the replacement of a motor vehicle windshield as a result of damage caused by a road hazard;
(D) The replacement of a motor vehicle key or key-fob in the event that the key or key-fob becomes inoperable, lost, or stolen; or
(E) Other services which may be approved by the commissioner, if not inconsistent with other provisions of this chapter.
Service contracts may provide for the repair, replacement, or maintenance of property damaged by power surges, or accidentally damaged during handling."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2050.
Motor Vehicle Service Contracts
Specifies that the regulation of motor vehicle service contracts does not apply to agreements issued by automobile clubs. Clarifies the allowable scope of motor vehicle service contracts regulated by the Insurance Commissioner to include contracts for certain motor vehicle repair and replacement services. (HB154 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.