STAND. COM. REP. NO. 1908-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 2490

S.D. 1

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 2490, S.D. 1, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE MOTOR VEHICLE INDUSTRY LICENSING ACT,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Specify certain recall reimbursement or repair requirements for manufacturers where a stop-sale order has been issued;

(2) Authorize a license holder to engage in business at motor vehicle dealer locations that are affiliated by common ownership under the same license;

(3) Clarify when certain manufacturers' or distributors' sales or service performance standards shall be deemed unreasonable, arbitrary, or unfair; and

(4) Prohibit a manufacturer or distributor from requiring a dealer to perform certain construction or renovations to the dealer's facilities; purchase items for a dealership facility in certain circumstances; or provide certain customer and proprietary data; unless certain conditions are met.

The Motor Vehicle Industry Licensing Board supported this measure. The Hawaii Automobile Dealers' Association and Alliance of Automobile Manufacturers provided comments.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2490, S.D. 1, H.D. 2, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair