RELATING TO AUTOMOTIVE REPAIR.

HB1464

HOUSE OF REPRESENTATIVES

H.B. NO.

1464

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to automotive repair
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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

"
Chapter

MOTOR
VEHICLES; AUTOMOTIVE REPAIR;

RIGHT TO
REPAIR

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

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"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.

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"Fair
and reasonable terms" means in determining whether a price is on
"fair and reasonable terms", consideration may be given to relevant
factors, including but not limited to:

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(1)
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The net cost to the manufacturer-franchised
dealerships for similar information obtained from manufacturers, less any
discounts, rebates, or other incentive programs;

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(2)
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The cost to the manufacturer to prepare and
distribute the information, excluding any research and development costs
incurred in designing and implementing, upgrading, or altering the onboard
computer and its software or any other vehicle part or component; provided that
amortized capital costs for the preparation and distribution of the information
may be included;

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(3)
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The price charged by other manufacturers for
similar information;

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(4)
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The price charged by manufacturers for similar
information prior to the launch of manufacturer websites;

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(5)
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The ability of aftermarket technicians or
shops to afford the information;

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(6)
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The means by which the information is
distributed;

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(7)
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The extent to which the information is used,
which includes the number of users, and the frequency, duration, and volume of
use; and

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(8)
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Inflation.

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"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.

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

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"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.

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"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; provided that for the purposes of this chapter, a
dealer, notwithstanding its affiliation with any manufacturer, shall be
considered 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.

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

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"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.

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

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

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"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.

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"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).

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Access by owners of motor vehicles and
independent repair facilities to motor vehicle manufacturer diagnostic and
repair information and diagnostic repair tools otherwise made available to
dealers.
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(a)
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Except as provided in subsection (e), for
model year 2002 motor vehicles and thereafter and model year 2013 heavy-duty
vehicles and thereafter, a manufacturer of motor vehicles sold in the State
shall make available for purchase by owners of motor vehicles manufactured by the
manufacturer and by independent repair facilities the same diagnostic and
repair information, including repair technical updates, that the manufacturer
makes available to its dealers through the manufacturer's internet-based
diagnostic and repair information system or other electronically accessible
manufacturer's repair information system.

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All
content in the manufacturer's repair information system shall be made available
to owners and to independent repair facilities in the same form and manner and
to the same extent as it is to dealers utilizing the diagnostic and repair
information system.
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Each manufacturer
shall provide access to the manufacturer's diagnostic and repair information
system for purchase by owners and independent repair facilities on a daily,
monthly, and yearly subscription basis and upon fair and reasonable terms.

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(b)
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A manufacturer that sells any diagnostic,
service, or repair information to an independent repair facility or other third-party
provider in a format that is standardized with other manufacturers, and on
terms and conditions more favorable than the manner and the terms and
conditions by which a dealer obtains the same diagnostic, service, or repair
information, shall be prohibited from requiring any dealer to continue
purchasing diagnostic, service, or repair information in a proprietary format,
unless the proprietary format includes diagnostic, service, repair, or
dealership operations information or functionality that is not available in the
standardized format.

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(c)
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Beginning with model year 2002 motor vehicles
and thereafter and model year 2013 heavy-duty vehicles and thereafter, each
manufacturer of motor vehicles sold in the State shall make available for
purchase by owners and independent repair facilities all diagnostic repair
tools incorporating the same diagnostic, repair and wireless capabilities that the
manufacturer makes available to its dealers.
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The tools shall incorporate the same
functional repair capabilities that the manufacturer makes available to
dealers.
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Each manufacturer shall offer the
tools for sale to owners and to independent repair facilities upon fair and
reasonable terms.

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Any
diagnostic tool or information necessary to diagnose, service, or repair a
motor vehicle that a manufacturer sells to an independent repair facility in a
manner and on terms and conditions more favorable than the manner and the terms
and conditions by which a dealer obtains the same diagnostic tool or
information necessary to diagnose, service or repair a motor vehicle, shall
also be offered to the dealer in the same manner and on the same terms and
conditions as provided to the independent repair facility.

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With
respect to a manufacturer that sells to an independent repair facility any
diagnostic tool necessary to diagnose, service, or repair a motor vehicle and the
diagnostic tool communicates with the vehicle using the same non-proprietary
interface used by other manufacturers, the manufacturer delivering such a
diagnostic tool shall be prohibited from requiring any dealer from continuing
to purchase that manufacturer's proprietary tool and interface, unless such
proprietary interface has a capability not available in the non-proprietary
interface.

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Each
manufacturer shall provide diagnostic repair information to each aftermarket
scan tool company and each third-party service information provider with whom
the manufacturer has appropriate licensing, contractual, or confidentiality
agreements for the sole purpose of building aftermarket diagnostic tools and
third-party service information publications and systems.
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Once a manufacturer makes the information
available pursuant to this section, the manufacturer shall be considered to
have satisfied its obligations under this section and thereafter not be
responsible for the content and functionality of aftermarket diagnostic tools
or service information systems.

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(d)
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Beginning with model year 2018, except as
provided in subsection (e), manufacturers of motor vehicles sold in the State,
including heavy-duty vehicles that are not heavy-duty vehicles built to custom
specifications sold in the State for commercial purposes, shall provide access
to their onboard diagnostic and repair information system, as required under
this section, using an off-the-shelf personal computer with sufficient memory,
processor speed, connectivity, and other capabilities as specified by the
vehicle manufacturer and:

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(1)
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A non-proprietary vehicle interface device
that complies with the Society of Automotive Engineers standard J2534, Society
of Automotive Engineers J1939, commonly referred to as SAE J2534 and SAE J1939,
the International Organization for Standardization standard 22900, commonly
referred to as ISO 22900 or any successor to SAE J2534, SAE J1939 or ISO 22900
as may be accepted or published by the Society of Automotive Engineers or the
International Organization for Standardization;

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(2)
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An onboard diagnostic and repair information
system integrated and entirely self-contained within the vehicle, including but
not limited to service information systems integrated into an onboard display;
or

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(3)
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A system that provides direct access to
onboard diagnostic and repair information through a non-proprietary vehicle
interface, such as ethernet, universal serial bus, or digital versatile disc.

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Each
manufacturer shall provide access to the same onboard diagnostic and repair
information available to its dealers, including technical updates to such
onboard systems, through such non-proprietary interfaces as referenced in this subsection.

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Nothing in this chapter shall be
construed to require a dealer to use a non-proprietary vehicle interface
specified in this subsection, nor shall this chapter be construed to prohibit a
manufacturer from developing a proprietary vehicle diagnostic and reprogramming
device; provided that the manufacturer also complies with this subsection, makes
this device available to independent repair facilities upon fair and reasonable
terms, and otherwise complies with subsection (a).

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Notwithstanding
anything in the preceding paragraph, motor vehicle owners' and independent
repair facilities' access to vehicle on-board diagnostic systems shall be
standardized and not require any authorization by the manufacturer, directly or
indirectly, unless the authorization system for access to vehicle networks and
their on-board diagnostic systems is standardized across all makes and models
sold in the State and is administered by an entity unaffiliated with a
manufacturer.

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No
manufacturer shall be prohibited from making proprietary tools available to
dealers if the tools are for a specific specialized diagnostic or repair
procedure developed for the sole purpose of a customer service campaign meeting
the requirements set out in title 49 Code of Federal Regulations section 579.5,
or performance of a specific technical service bulletin or recall after the
vehicle was produced, and where original vehicle design was not originally
intended for direct interface through a non-proprietary interface as described
in this subsection.

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Provision
of the proprietary tools under this subsection shall not constitute a violation
of this chapter even if the tools provide functions not available through the
interface set forth in this subsection; provided that the proprietary tools are
also available to the aftermarket upon fair and reasonable terms.
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Nothing in this subsection shall authorize
manufacturers to exclusively develop proprietary tools, without a
non-proprietary equivalent, for diagnostic or repair procedures that fall
outside the provisions of this subsection or to otherwise operate in a manner
inconsistent with this subsection.

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(e)
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Manufacturers of motor vehicles sold in the State
may exclude diagnostic, service, and repair information necessary to reset an
immobilizer system or security-related electronic modules from information
provided to owners and independent repair facilities.
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If excluded under this subsection, the
information necessary to reset an immobilizer system or security-related
electronic modules shall be obtained by owners and independent repair
facilities through the secure data release model system currently used by the
National Automotive Service Task Force or other known, reliable, and accepted
systems.

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(f)
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Beginning with model year 2022, a manufacturer
of motor vehicles sold in the State, including heavy-duty vehicles having a
gross vehicle weight rating of more than fourteen thousand pounds, 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.
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The
platform shall be capable of securely communicating all mechanical data
emanating directly from the motor vehicle via direct data connection to the
platform.
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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.
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Access shall include the ability to send
commands to in-vehicle components if needed for purposes of maintenance,
diagnostics and repair.

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(g)
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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:

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

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

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

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

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

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(h)
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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.

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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.

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Protection of manufacturer trade secrets.
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Nothing in this chapter shall be construed to
require a manufacturer to divulge a trade secret.

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Construction of chapter with other laws or
franchise agreements.
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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.

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Access to non-diagnostic and repair
information not required.
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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.

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Remedies for violation of chapter.
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(a)
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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.

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(b)
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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.
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If the manufacturer cures the complaint
within the time period, damages shall be limited to actual damages in any
subsequent litigation.

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(c)
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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.

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The
complaint shall include but not be limited to:

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(1)
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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;

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

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

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(d)
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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.

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(e)
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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 sections - 2(d)(1)
or (f) may initiate a civil action seeking any remedies under law.
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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."

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

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SECTION 3.
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This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Automotive
Repair; Right to Repair

Description:

Provides
access by owners of motor vehicles and independent repair facilities to motor
vehicle manufacturer diagnostic and repair information and diagnostic repair
tools otherwise made available to dealers.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.