Bill > SB1119

This bill amends Hawaii's motor vehicle industry licensing laws to introduce several significant changes in the relationship between vehicle manufacturers, distributors, and dealers. The bill adds provisions allowing manufacturers to sell or activate vehicle accessories and features remotely after the initial sale, while requiring them to pay franchised dealers a percentage of the revenue from such sales. It expands definitions of key terms like "sale," "selling," and "common entity" to provide more clarity and protect dealers' interests. The bill establishes more detailed reimbursement procedures for dealers performing warranty work, including specific guidelines for calculating parts and labor compensation rates and creating a dispute resolution process for challenging these rates. Additionally, the bill strengthens protections for dealers in franchise transfers and successions, making it harder for manufacturers to unreasonably deny transfers to qualified successors or family members. The legislation also places new restrictions on manufacturers' ability to chargeback dealers for warranty claims and requires more transparency in various dealer-manufacturer interactions, ultimately aiming to create a more equitable regulatory environment for motor vehicle dealers in Hawaii.

Transportation and Infrastructure

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1119&year=2026