Bill > HB938

This bill modifies Hawaii's Motor Vehicle Industry Licensing Act to address several key aspects of the automotive sales and service industry. The bill introduces provisions allowing manufacturers and distributors to sell certain vehicle accessories, features, and upgrades directly to consumers through remote electronic transmission, while requiring them to compensate dealers with at least 20% of the gross revenue from such sales if the vehicle was sold by a franchised dealer within the past five years. It clarifies the definition of "common entity" and expands the definitions of terms like "franchise," "manufacturer," and "sale" to encompass modern automotive sales practices. The bill also strengthens dealer protections by prohibiting manufacturers from requiring dealers to purchase electric vehicle charging stations at their own expense without proper notice, and by establishing more detailed procedures for franchise transfers, succession, and warranty reimbursement. Additionally, the bill provides more robust mechanisms for dealers to contest parts and labor reimbursement rates, limits manufacturers' ability to charge back dealers for warranty claims, and ensures that dealers receive timely and fair compensation for warranty work and recall repairs. The legislation aims to create a more equitable relationship between automotive manufacturers, distributors, and dealerships by addressing evolving technologies and sales methods in the automotive industry.