REPORT TITLE: 
Lemon Law Refund



DESCRIPTION:
Includes the finance and interest charges paid by a consumer in
the consumer's "Lemon Law" refund.  (HB2479 HD1)


 
a                                                               
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2479
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D.1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO MOTOR VEHICLE EXPRESS WARRANTY ENFORCEMENT (LEMON
   LAW).



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

 1      SECTION 1.  Section 481I-2, Hawaii Revised Statutes, is
 
 2 amended by amending the definition of "collateral charges" to
 
 3 read:
 
 4      ""Collateral charges" means those additional charges to a
 
 5 consumer wholly incurred as a result of the acquisition of the
 
 6 motor vehicle.  For the purposes of this chapter, collateral
 
 7 charges include[,] but are not limited to[,] finance and interest
 
 8 charges, manufacturer-installed or agent-installed items, general
 
 9 excise tax, license and registration fees, title charges, and
 
10 similar government charges."
 
11      SECTION 2.  Section 481I-3, Hawaii Revised Statutes, is
 
12 amended by amending subsection (b) to read as follows:
 
13      "(b) If the manufacturer, its agents, distributors, or
 
14 authorized dealers are unable to conform the motor vehicle to any
 
15 applicable express warranty by repairing or correcting any defect
 
16 or condition which substantially impairs the use, market value,
 
17 or safety of the motor vehicle after a reasonable number of
 
18 documented attempts, then the manufacturer shall provide the
 
19 consumer with a replacement motor vehicle or accept return of the
 

 
a                                                               
Page 2                                                     2479
                                     H.B. NO.           H.D.1
                                                        
                                                        


 1 vehicle from the consumer and refund to the consumer the
 
 2 following:  the full purchase price including but not limited to
 
 3 charges for undercoating, dealer preparation, transportation
 
 4 [and], installed options, and all collateral and incidental
 
 5 charges, [excluding finance and interest charges,] and less a
 
 6 reasonable offset for the consumer's use of the motor vehicle.
 
 7      If either a replacement motor vehicle or a refund is
 
 8 awarded, an "offset" may be made for damage to the vehicle not
 
 9 attributable to normal wear and tear, if unrelated to the
 
10 nonconformity.  If a replacement motor vehicle is awarded, a
 
11 reasonable offset shall be made for the use of the motor vehicle
 
12 and an additional offset may be made for loss to the fair market
 
13 value of the vehicle resulting from damage beyond normal wear and
 
14 tear, unless the damage resulted from the nonconformity.  When
 
15 the manufacturer supplies a replacement motor vehicle, the
 
16 manufacturer shall be responsible for the general excise tax, and
 
17 license and registration fees.  Refunds made pursuant to this
 
18 subsection shall be deemed to be refunds of the sales price and
 
19 treated as such for purposes of section 237-3.  Refunds shall be
 
20 made to the consumer and lienholder, if any, as their interests
 
21 may appear on the records of ownership.  If applicable, refunds
 
22 shall be made to the lessor and lessee pursuant to rules adopted
 
23 by the department of commerce and consumer affairs."
 

 
a                                                               
Page 3                                                     2479
                                     H.B. NO.           H.D.1
                                                        
                                                        


 1      SECTION 3.  Statutory material to be repealed is bracketed.
 
 2 New statutory material is underscored.
 
 3      SECTION 4.  This Act shall take effect upon its approval.
 

 
a