HB1464 HD1

SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

MOTOR VEHICLE MECHANICAL SYSTEMS

§ -1 Definitions. As used in this chapter, unless the context otherwise requires:

"Dealer" means any person or business who, in the ordinary course of its business, lawfully sells or leases new motor vehicles to consumers or other end users pursuant to a franchise agreement and diagnoses, services, maintains, or repairs motor vehicles or motor vehicle engines pursuant to the franchise agreement. "Dealer", notwithstanding its affiliation with any manufacturer, includes an independent repair facility for the purposes of those instances when the dealer diagnoses, services, maintains, or repairs motor vehicles or motor vehicle engines that are not affiliated with the dealer's franchise manufacturer.

"Franchise agreement" means an oral or written arrangement for a definite or indefinite period during which a manufacturer or distributor grants to a motor vehicle dealer a license to use a trade name, service mark, or related characteristic and in which there is a community of interest in the marketing of new motor vehicles or services related thereto at wholesale, retail, leasing, or otherwise.

"Heavy-duty vehicle" means any vehicle having a gross vehicle weight rating of more than fourteen thousand pounds.

"Independent repair facility" means a person or business operating in the State that is not affiliated with a manufacturer or manufacturer's authorized dealer of motor vehicles, which diagnoses, services, maintains, or repairs motor vehicles or motor vehicle engines.

"Manufacturer" means any person or business engaged in the business of manufacturing or assembling new motor vehicles.

"Mechanical data" means any vehicle-specific data, including telematics system data, generated, stored in, or transmitted by a motor vehicle used for or otherwise related to the diagnosis, repair, or maintenance of the vehicle.

"Motor vehicle" means any self-propelled vehicle to be operated on the public highways.

"Owner" means a person or business who owns or leases a motor vehicle registered in the State.

"Telematics system" means any system in a motor vehicle that collects information generated by the operation of the vehicle and transmits the information, also known as "telematics system data", using wireless communications to a remote receiving point where it is stored.

§ -2 Motor vehicles with telematics system; heavy-duty vehicles; inter-operable, standardized, open-access platform; mechanical data. (a) Beginning with model year 2022, a manufacturer of motor vehicles sold in the State, including heavy-duty vehicles, that utilizes a telematics system shall be required to equip such vehicles with an inter-operable, standardized, and open-access platform across all of the manufacturer's makes and models. The platform shall be capable of securely communicating all mechanical data emanating directly from the motor vehicle via direct data connection to the platform. The platform shall be directly accessible by the owner of the vehicle through a mobile-based application and upon the authorization of the vehicle owner, all mechanical data shall be directly accessible by an independent repair facility, limited to the time to complete the repair or for a period of time agreed to by the vehicle owner for the purposes of maintaining, diagnosing, and repairing the motor vehicle. Access shall include the ability to send commands to in-vehicle components if needed for purposes of maintenance, diagnostics and repair.

(b) The director of commerce and consumer affairs shall establish for prospective vehicle owners a motor vehicle telematics system notice that includes but is not limited to the following:

(1) An explanation of motor vehicle telematics and its purposes;

(2) A description summarizing the mechanical data collected, stored, and transmitted by a telematics system;

(3) The prospective owner's ability to access the vehicle's mechanical data through a mobile device; and

(4) An owner's right to authorize an independent repair facility to access the vehicle's mechanical data for vehicle diagnostics, repair, and maintenance purposes.

The notice form shall provide for the prospective owner's signature certifying that the prospective owner has read the telematics system notice.

(c) When selling or leasing motor vehicles containing a telematics system, a dealer shall provide the motor vehicle telematics system notice to the prospective owner, obtain the prospective owner's signed certification that the prospective owner has read the notice, and provide a copy of the signed notice to the prospective owner.

A dealer's failure to comply with this subsection shall be grounds for any action by the licensing authority relative to the dealer's license, up to and including revocation.

(d) For purposes of this section, "immobilizer system" means an electronic device designed for the sole purpose of preventing the theft of a motor vehicle by preventing the motor vehicle in which it is installed from starting without the correct activation or authorization code.

§ -3 Protection of manufacturer trade secrets. (a) Nothing in this chapter shall be construed to require a manufacturer to divulge a trade secret.

(b) For purposes of this section, "trade secret" means anything tangible or intangible or electronically stored or kept that constitutes, represents, evidences, or records intellectual property, including secret or confidentially held designs, processes, procedures, formulas, inventions or improvements, or secret or confidentially held scientific, technical, merchandising, production, financial, business or management information, or anything within the definition in title 18 United States Code section 1839(3).

§ -4 Construction of chapter with other laws or franchise agreements. Notwithstanding any law to the contrary, nothing in this chapter shall be construed to abrogate, interfere with, contradict, or alter the terms of any franchise agreement executed and in force between a dealer and a manufacturer, including but not limited to the performance or provision of warranty or recall repair work by a dealer on behalf of a manufacturer pursuant to such franchise agreement; provided that any provision in a franchise agreement that purports to waive, avoid, restrict, or limit a manufacturer's compliance with this chapter shall be void and unenforceable.

§ -5 Access to non-diagnostic and repair information not required. Nothing in this chapter shall be construed to require manufacturers or dealers to provide an owner or independent repair facility access to non-diagnostic and repair information provided by a manufacturer to a dealer or by a dealer to a manufacturer pursuant to the terms of a franchise agreement.

§ -6 Remedies for violation. (a) In addition to any other remedies that may be available, any violation of this chapter shall be deemed to be unfair competition and a restraint of trade under chapter 480.

(b) An independent repair facility or owner that believes that a manufacturer has failed to provide information or a tool required by this chapter shall notify the manufacturer, in writing, through the National Automotive Service Task Force Service Information Request process, or its successor organization or process, and give the manufacturer thirty days from the time the manufacturer receives the complaint to cure the failure. If the manufacturer cures the complaint within the time period, damages shall be limited to actual damages in any subsequent litigation.

(c) If a manufacturer fails to respond to the notice provided pursuant to subsection (b), or if an independent repair facility or owner is not satisfied with the manufacturer's cure, the independent repair facility or owner may file a complaint in the circuit court or, if applicable, in the federal district court for the district of Hawaii.

The complaint shall include but not be limited to:

(1) Written information confirming that the complainant has visited the relevant manufacturer website and attempted to effect a proper repair utilizing information provided on the website, including communication with customer assistance via the manufacturer's toll-free call-in assistance, if made available by the manufacturer;

(2) Written information confirming that the complainant has obtained and utilized the relevant manufacturer's scan or diagnostic tool necessary for the repair; and

(3) Evidence of manufacturer notification as set out in subsection (b).

(d) Except in the case of a dispute arising between a franchisor manufacturer and its franchisee dealer related to either party's compliance with an existing franchise agreement, a dealer shall have all the rights and remedies provided in this chapter, including but not limited to exercising the rights and remedies allowed an independent repair facility.

(e) Notwithstanding subsections (b) and (c), any owner or independent repair facility authorized by an owner who has been denied access to mechanical data in violation of section ‑2(a) may initiate a civil action seeking any remedies under law. Each denial of access in violation of these sections shall be compensable by an award of treble damages or $10,000, whichever amount is greater."

SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 3. This Act shall take effect on July 1, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	1464
THIRTY-THIRD LEGISLATURE, 2025		H.D. 1
STATE OF HAWAII