HB 2630 Summary

• Amends Hawaii's Motor Vehicle Industry Licensing Act to clarify that all provisions apply to existing franchise and ancillary agreements as of the date of enactment.

• Adds definitions for "ancillary agreement" (written agreements between dealer and manufacturer/distributor relating to dealership operations) and "relevant market area" (county-based for populations under 500,000; ten-mile radius for larger counties).

• Expands grounds for license suspension, revocation, or denial to include manufacturer/distributor violations such as requiring dealers to waive legal remedies, imposing unfair non-Hawaii legal requirements, preventing dealership relocation, establishing unfair performance standards, and discriminatory vehicle allocation practices.

• Establishes detailed warranty compensation procedures requiring manufacturers to reimburse dealers based on submitted repair orders for parts markup and labor rates, with thirty-day payment deadlines and restrictions on chargebacks and audits.

• Requires manufacturers to provide ninety days' notice before terminating franchises, allow dealers 180 days to cure performance deficiencies, and compensate dealers for inventory, equipment, and capital investments upon termination without good cause.