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THE SENATE |
S.B. NO. |
35 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to the motor vehicle industry licensing act.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. In 2010, the legislature passed Act 164, Session Laws of Hawaii (2010), to update protections for local auto dealers in their relations with manufacturers in response to the current difficult economic climate and major changes in the automotive industry, including the introduction of clean technology. The purpose of this Act is to update statutory cross references within the motor vehicle industry licensing act to reflect the statutory changes contained in Act 164.
SECTION 2. Section 437-28.5, Hawaii Revised Statutes, is amended to read as follows:
"§437-28.5 Procedures,
protections, rights, and remedies made available to licensees. (a) The
same procedures, protections, rights, and remedies provided to a dealer under [section
437-28(a)(21) and] section 437-3.6, section 437‑28(a)(21), and
part II shall apply to a distributor that is not a manufacturer.
(b) Notwithstanding the terms, provisions, or
conditions of any dealer or distributor agreement [or], franchise,
or [the terms or provisions of any] waiver and notwithstanding any other
legal or administrative remedies available, any person who is licensed under
this chapter and whose business or property is injured by a violation of
section 437-28(a)(21)[,] or part II may bring a civil action in a
court of competent jurisdiction in the State to enjoin further violations and
to recover any damages together with the costs of the suit. Laws of the State
of Hawaii shall apply to any action initiated under this [section.] subsection.
(c) Any person that brings or defends against a
civil action under subsection (b) may be entitled to recover reasonable
attorneys' fees as a part of any damages or injunction; provided that the
person substantially prevails in establishing or defending against a violation
of section 437‑28(a)(21)[.] or part II.
(d) Upon a cancellation or failure to renew a distributorship agreement, the party canceling or failing to renew the agreement, at the distributor's option, shall either:
(1) Compensate the distributor at the fair market
value [for] of the distributor's capital investment, which shall
include but not be limited to the going business value of the business,
goodwill, property, and improvement owned or leased by the distributor for the
purpose of the distributorship[,]; the distributor's inventory of
parts[, including compensation related to]; the distributor's
dealer operations and franchise agreements with other dealers; and motor
vehicles possessed by the distributor in connection with the distributorship[,]
plus reasonable attorney's fees incurred in collecting compensation; provided
that [the], to be eligible for compensation pursuant to this
paragraph, an investment shall have been made with reasonable and prudent
judgment for the purpose of the distributorship agreement; or
(2) Compensate the distributor for damages including reasonable
attorney's fees [as aforesaid,] incurred in collecting compensation
resulting from the cancellation or failure to renew the distributorship
agreement.
[As used in this paragraph, "good
faith" means the duty of each party to any franchise agreement to fully
comply with that agreement, or to act in a fair and equitable manner towards
each other.]"
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, 2011.
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INTRODUCED BY: |
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Report Title:
Motor Vehicle Industry Licensing Act
Description:
Amends section of motor vehicle industry licensing act to reflect updated statutory cross-references and make nonsubstantive technical amendments.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.