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HI HB938

Bill

Status

Introduced

1/23/2025

Primary Sponsor

Chris Todd

Click for details

Origin

House of Representatives

2026 Regular Session

AI Summary

  • Requires manufacturers and distributors to compensate franchised dealers a minimum of 20% of gross revenue when selling vehicle accessories, features, or upgrades directly to consumers through remote electronic transmission within 5 years of the original sale

  • Expands the Motor Vehicle Industry Licensing Act to cover "common entities" (persons with more than 10% equity interest controlled by manufacturers or distributors) and prohibits manufacturers from competing with dealers by selling new vehicles directly to consumers in Hawaii

  • Prohibits manufacturers from requiring dealers to purchase electric vehicle charging stations at the dealer's expense unless the dealer has notified the manufacturer of intent to sell that manufacturer's electric vehicles

  • Strengthens dealer protections for franchise transfers and successions by limiting grounds for denial to felony convictions, failure to meet business qualifications, or unwillingness to be bound by existing franchise terms

  • Establishes detailed procedures for dealers to claim retail parts markup and labor rate reimbursement for warranty work, requiring manufacturers to pay or contest claims within 30 days and extending chargeback notice periods from 30 to 60 days

Legislative Description

Relating To The Motor Vehicle Industry Licensing Act.

Franchises

Last Action

Carried over to 2026 Regular Session.

12/8/2025

Committee Referrals

Transportation1/23/2025

Full Bill Text

No bill text available