Bill Text: HI SB823 | 2019 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating To Motor Vehicle Repairs.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Engrossed) 2019-04-05 - Received notice of disagreement (Sen. Com. No. 685). [SB823 Detail]

Download: Hawaii-2019-SB823-Amended.html

THE SENATE

S.B. NO.

823

THIRTIETH LEGISLATURE, 2019

S.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 properly repaired following a collision.  The legislature further finds that to reduce costs, some insurance companies only pay for vehicle repairs made with aftermarket crash parts, despite vehicle manufacturer recommendations to the contrary.

     Furthermore, many motor vehicle insurers do not allow insured consumers to decide whether repairs are made with aftermarket crash parts or original equipment manufacturer crash parts, and may refuse to reimburse insured consumers for the additional costs of installing original equipment manufacturer crash parts, even when necessary to restore a vehicle to its pre-collision condition.  The legislature also finds that consumers should receive appropriate disclosures concerning comparisons between and prices of aftermarket crash parts and original equipment manufacturer crash parts.

     The purpose of this Act is to:

     (1)  Require insurers to provide a clear choice to insured consumers when offering a new or renewal motor vehicle policy coverage to authorize a repair provider to utilize a like kind and quality crash part or the original equipment manufacturer crash part;

     (2)  Specify that an insured consumer who chooses the use of an original equipment manufacturer crash part that would affect the insured consumer's Advanced Driver Assist Systems or safety systems shall not be required to pay the additional cost of the original equipment manufacturer crash part that is in excess of the equivalent like kind and quality crash part; and

     (3)  Specify that an insured consumer who chooses the use of an original equipment manufacturer crash part that would not affect the insured consumer's Advanced Driver Assist Systems or safety systems shall pay the additional cost of the original equipment manufacturer crash part that is in excess of the equivalent like kind and quality crash part, unless the use of a like kind and quality crash part would void an existing manufacturer's warranty or the insured consumer's vehicle lease agreement.

     SECTION 2.  Section 431:10C-313.6, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§431:10C-313.6[]]  Original equipment manufacturer's and like kind and quality crash parts.  (a)  An insurer shall clearly make available a choice to the insured consumer, at the time the insurer offers a new or renewal motor vehicle policy coverage, of authorizing a repair provider to utilize a like kind and quality crash part of an equal or better quality than the original equipment manufacturer crash part if [such] the crash part is available or an original equipment manufacturer crash part for motor vehicle body repair work.  If the insured consumer chooses the use of an original equipment manufacturer crash part that would affect the insured consumer's Advanced Driver Assist Systems or safety systems, the insured consumer shall not pay the additional cost of the original equipment manufacturer crash part that is in excess of the equivalent like kind and quality crash part.  If the insured [or claimant] consumer chooses the use of an original equipment manufacturer crash part[,] that would not affect the insured consumer's Advanced Driver Assist Systems or safety systems, the insured [or claimant] consumer shall pay the additional cost of the original equipment manufacturer crash part that is in excess of the equivalent like kind and quality crash part, unless [original equipment parts are required by the vehicle manufacturer's warranty.] use of a like kind and quality crash part would void an existing manufacturer's warranty or the insured consumer's vehicle lease agreement.

     (b)  A like kind and quality crash part under subsection (a), of an equal or better quality than the original equipment manufacturer crash part, shall carry a guarantee in writing for the quality of the like kind and quality crash part and the equivalent performance in a vehicle's Advanced Driver Assist Systems and safety systems for not less than ninety days or for the same guarantee period as the original equipment manufacturer crash part, whichever is longer.  The guarantee shall be provided by the insurer.

     (c)  Like kind and quality crash parts, certified [or] and approved by governmental or industry organizations, shall be utilized [if available].

     (d)  For any crash part authorized under subsection (a), a repair provider shall:

     (1)  Provide an insured consumer with the cost of the original equipment manufacturer crash part and the like kind and quality crash part, which shall detail the cost markup for each crash part; and

     (2)  Disclose to an insured consumer any potential impact that use of a like kind and quality crash part may have on a vehicle manufacturer's warranty, or whether any crash part that meets the vehicle manufacturer's specifications is acceptable for purposes of maintaining or receiving benefits under the vehicle manufacturer's warranty.

     (e)  This section shall apply to crash parts for vehicles that are not more than ten years old, as of the date of the collision.

     (f)  For the purposes of this section:

     "Crash part" means an exterior sheet metal or plastic body part, such as a hood, door, fender, bumper component, grille, headlight, tail light or other lamp, or other cosmetic trim part most frequently damaged in a vehicle accident.

     "Like kind and quality" means an aftermarket part that is not manufactured by the original vehicle manufacturer."

     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, and shall be repealed on July 1, 2029; provided that section 431:10C-313.6, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the effective date of this Act.

 


 


 

Report Title:

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

 

Description:

Requires insurers to provide a choice to the insured consumer of authorizing a repair provider to utilize a like kind and quality crash part or the original equipment manufacturer crash part.  Specifies the circumstances when an insured consumer who chooses the use of an original equipment manufacturer crash part must pay the additional cost of the original equipment manufacturer crash part that is in excess of the equivalent like kind and quality crash part. Defines crash part and like kind and quality.  Sunsets 7/1/2029.  Effective 7/1/2050.  (SD1)

 

 

 

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

 

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