THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 481I-2, Hawaii Revised Statutes, is
 2 amended by amending the definition of "collateral charges" to
 3 read as follows:
 4      ""Collateral charges" means those additional charges to a
 5 consumer wholly incurred as a result of the acquisition of the
 6 motor vehicle.  For the purposes of this chapter, collateral
 7 charges include, but are not limited to, finance and interest
 8 charges, manufacturer-installed or agent-installed items, general
 9 excise tax, license and registration fees, title charges, and
10 similar government charges."
11      SECTION 2.  Section 481I-3, Hawaii Revised Statutes, is
12 amended by amending subsection (b) to read as follows:
13      "(b) If the manufacturer, its agents, distributors, or
14 authorized dealers are unable to conform the motor vehicle to any
15 applicable express warranty by repairing or correcting any defect
16 or condition which substantially impairs the use, market value,
17 or safety of the motor vehicle after a reasonable number of
18 documented attempts, then the manufacturer shall provide the

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 1 consumer with a replacement motor vehicle or accept return of the
 2 vehicle from the consumer and refund to the consumer the
 3 following:  the full purchase price including but not limited to
 4 charges for undercoating, dealer preparation, transportation and
 5 installed options, and all collateral and incidental charges,
 6 [excluding finance and interest charges,] and less a reasonable
 7 offset for the consumer's use of the motor vehicle.
 8      If either a replacement motor vehicle or a refund is
 9 awarded, an "offset" may be made for damage to the vehicle not
10 attributable to normal wear and tear, if unrelated to the
11 nonconformity.  If a replacement motor vehicle is awarded, a
12 reasonable offset shall be made for the use of the motor vehicle
13 and an additional offset may be made for loss to the fair market
14 value of the vehicle resulting from damage beyond normal wear and
15 tear, unless the damage resulted from the nonconformity.  When
16 the manufacturer supplies a replacement motor vehicle, the
17 manufacturer shall be responsible for the general excise tax, and
18 license and registration fees.  Refunds made pursuant to this
19 subsection shall be deemed to be refunds of the sales price and
20 treated as such for purposes of section 237.3.  Refunds shall be
21 made to the consumer and lienholder, if any, as their interests

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 1 may appear on the records of ownership.  If applicable, refunds
 2 shall be made to the lessor and lessee pursuant to the rules
 3 adopted by the department of commerce and consumer affairs."
 4      SECTION 3.  Statutory material to be repealed is bracketed.
 5 New statutory material is underscored.
 6      SECTION 4.  This Act shall take effect on October 1, 2000.
 8                           INTRODUCED BY:  _______________________

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