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

H.D. 1

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO MOTOR VEHICLE REPAIRS.

 

 

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

 


     SECTION 1.  Under Hawaii law, an insured may authorize a motor vehicle repair provider to use an "aftermarket part" or a like kind and quality part of an equal or better quality than the original, if available, or an original part for body repair work.  If an insured chooses installation of an original equipment manufacturer part, the insured must pay the difference in cost between the aftermarket and original equipment manufacturer part unless original equipment parts are required by the vehicle's manufacturer's warranty.  The price difference between the original equipment manufacturer and aftermarket parts can be considerable.

     Several motor vehicle insurers already allow insureds, who prefer original equipment manufacturer parts, to indicate their preference.  This enables consumers to choose appropriate coverage meeting their needs.  Requiring motor vehicle insurers to provide consumers clear notice of this choice enables consumers to make better decisions when purchasing motor vehicle insurance.

     The purpose of this Act is to:

     (1)  Require insurers to clearly give consumers notice of the choice of whether to use an aftermarket part, if available, or an original equipment manufacturer part for motor vehicle body repair work, and that notice must be given at the time the insurer offers new or renewal motor vehicle policy coverage; and

     (2)  Require the legislative reference bureau to study the safety hazards of aftermarket parts, licensure of motor vehicle body repair shops, and the fiscal impacts this Act will have on consumers.

     SECTION 2.  Section 431:10C-313.6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  An insurer shall clearly make available a choice to the insured, at the time the insurer offers new or renewal motor vehicle policy coverage, of authorizing a repair provider to utilize a like kind and quality part of an equal or better quality than the original equipment manufacturer part if such part is available or an original equipment manufacturer part for motor vehicle body repair work.  If the insured or claimant chooses the use of an original equipment manufacturer part, the insured or claimant shall pay the additional cost of the original equipment manufacturer part that is in excess of the equivalent like kind and quality part, unless original equipment parts are required by the vehicle manufacturer's warranty."

     SECTION 3.  (a)  The legislative reference bureau shall conduct a study to determine whether:

     (1)  The use of aftermarket parts pose any safety hazards to consumers if they are installed properly;

     (2)  Motor vehicle body repair shops should be licensed by the State; and

     (3)  The provisions as required by this Act will require consumers to pay higher insurance prices.

     (b)  The legislative reference bureau shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2020.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2050.


 


 

Report Title:

Motor Vehicle Insurance; Repairs; Original Equipment Manufacturer Parts; Aftermarket Parts; Legislative Reference Bureau; Study

 

Description:

Requires insurers to clearly give consumers notice of the choice of whether to use an aftermarket part, if available, or an original equipment manufacturer part for motor vehicle body repair work.  Requires the Legislative Reference Bureau to study the safety hazards of aftermarket parts, licensure of motor vehicle body repair shops, and impacts of requiring insurers to give consumers notice as required by this measure.  (SB823 HD1)

 

 

 

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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