HOUSE OF REPRESENTATIVES

H.B. NO.

1422

TWENTY-EIGHTH LEGISLATURE, 2015

H.D. 1

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.  Chapter 481X, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§481X-     Claims under an extended warranty; provider disclosure.  When a contract holder makes a claim under an extended warranty for the first time within the applicable time period of the extended warranty, the provider shall disclose to the contract holder that, pursuant to section 481X-7(b), if the claim is charged against the extended warranty, the contract holder shall no longer be entitled to a refund of the full purchase price of the extended warranty."

     SECTION 2.  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; provided that express or implied warranties shall not be deemed to include extended warranties;

     (2)  Maintenance agreements; and

     (3)  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 3.  Section 481X-2, Hawaii Revised Statutes, is amended by amending the definition of "service contract" to read:

     ""Service contract" means a contract or agreement for a separately stated consideration and a specific duration, to perform or indemnify the repair, replacement, or maintenance of property for operational or structural 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.  Service contracts may provide for the repair, replacement, or maintenance of property damaged by power surges, or accidentally damaged during handling.  A "service contract" includes an extended warranty."

     SECTION 4.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on June 30, 2112.


 


 

Report Title:

Service Contracts; Extended Warranties; Disclosure

 

Description:

Applies the law on service contracts to include extended warranties.  Requires providers to disclose to contract holders submitting a claim for the first time under an extended warranty that if the service is charged to the extended warranty the contract holder will no longer be entitled to a full refund.  Effective 6/30/2112.  (HD1)

 

 

 

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