HOUSE OF REPRESENTATIVES

H.B. NO.

1620

TWENTY-NINTH LEGISLATURE, 2018

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO MOTOR VEHICLE REPAIRS.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that motor vehicle owners have the right to expect that their vehicles are repaired properly following a collision.  Proper repairs include the installation of original equipment manufacturer parts, that is, the parts that vehicle manufacturers have tested and engineered to ensure proper fit, function, and most importantly, safety.  Repairing vehicles with original equipment manufacturer parts helps to ensure the safety and proper performance of repaired motor vehicles.

     The legislature further finds that to reduce costs, some insurance companies only pay for vehicle repairs made with aftermarket parts, despite vehicle manufacturer recommendations to the contrary.  These aftermarket parts, also called non-original equipment manufacturer parts or generic parts, are not made by the original manufacturer and can be unsafe because they are not crash-tested and are inferior to original equipment manufacturer parts in fit and finish.

     Furthermore, many motor vehicle insurers do not allow insureds to decide whether repairs are made with aftermarket parts or original equipment manufacturer parts, and they may in fact refuse to reimburse insureds for the additional costs of installing original equipment manufacturer parts, even when necessary to restore a vehicle to its pre-collision condition.  This practice of the insurance industry has resulted in lawsuits across the nation when aftermarket parts installed in repaired vehicles have failed in subsequent collisions.

     The purpose of this Act is to establish a vehicle repair practices task force within the department of commerce and consumer affairs to address the concerns of consumers with regard to the use of original equipment manufacturer parts or aftermarket parts in the repair of their vehicles.

     SECTION 2.  (a)  There is established within the department of commerce and consumer affairs, the vehicle repair practices task force.  The task force shall address the concerns of consumers with regard to the use of original equipment manufacturer parts or aftermarket parts in the repair of their vehicles.  The task force shall submit a report with findings and recommendations, including proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2019.  The report shall address and include:

     (1)  Current motor vehicle insurance practices and coverages in Hawaii and nationally for repairs to insured vehicles, including coverage options and costs relating to the use of original equipment manufacturer parts or aftermarket parts in repairing an insured vehicle;

     (2)  Studies by nationally accredited institutions or government agencies regarding the fitness, quality, and safety of aftermarket vehicle parts in comparison to comparable original equipment manufacturer parts;

     (3)  A cost-benefit analysis of the consumer using original equipment manufacturer parts or aftermarket parts in repairing the consumers vehicle; and

     (4)  Proposed legislation to provide affordable, safe, and reliable vehicle repair options to Hawaii's consumers, including legislation focused on businesses related to repairing vehicles and insuring vehicles.

     (b)  The director of commerce and consumer affairs shall be the chair of the vehicle repair practices task force, who shall invite as members of the task force:

     (1)  Two members from the insurance industry;

     (2)  Two members from the vehicle repair industry; and

     (3)  One member from the aftermarket parts industry.

     The members of the task force shall serve without compensation, and all necessary expense, including travel expenses, shall be paid by the department of commerce and consumer affairs.  No member shall be made subject to section 84-17, Hawaii Revised Statutes, solely because of that member's participation as a member of the task force.  The task force shall be exempt from chapter 92, Hawaii Revised Statutes.

     (c)  The vehicle repair practices task force shall dissolve on June 30, 2019.

     SECTION 3.  This Act shall take effect on July 1, 3000.



 

Report Title:

Vehicle Repair Practices Task Force; Motor Vehicle Insurance; Repair; Original Equipment Manufacturer Parts; Aftermarket Parts

 

Description:

Establishes Vehicle Repair Practices Task Force to study and report, among other things, vehicle repairs made with and insurance coverage of original equipment manufacturer parts or aftermarket parts.  (HB1620 HD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.