HOUSE OF REPRESENTATIVES	H.B. NO.	1511
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII

A BILL FOR AN ACT

relating to consumer protection.

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

SECTION 1. Chapter 481B, Hawaii Revised Statutes, is amended by adding two new sections to part I to be appropriately designated and to read as follows:

"§481B-    Vehicle warranties; unsolicited mail and electronic mail. (a) No entity shall distribute unsolicited mail or electronic mail to a consumer that is reasonably likely to result in the consumer believing that a vehicle manufacturer, new motor vehicle dealer, used motor vehicle dealer, or insurance company is asking the consumer to send money to extend a vehicle warranty, unless the entity includes a clear and conspicuous statement, printed or rendered in bold face fourteen point type and located in a position that is reasonably calculated to draw the attention of the reader, that:

(1) The entity is not affiliated with the vehicle manufacturer, new motor vehicle dealer, used motor vehicle dealer, or insurance company; and

(2) The extended vehicle warranty being offered is completely optional;

provided that if the notice of opt-in is not included in the mail or electronic mail, any contract entered into as a result of the unsolicited mail or electronic mail shall be voidable at the option of the consumer, and any money paid by the consumer under the contract shall be refunded in full.

(b) For purposes of this section:

"Entity" means a person, firm, partnership, association, or corporation, or agent or employee thereof.

"New motor vehicle dealer" has the same meaning as defined in section 437-1.1.

"Used motor vehicle dealer" has the same meaning as defined in section 437-1.1.

"Vehicle manufacturer" has the same meaning as "manufacturer" as defined in section 437-1.1.

§481B-    Home warranties; unsolicited mail and electronic mail. (a) No entity shall distribute unsolicited mail or electronic mail to a consumer that is reasonably likely to result in the consumer believing that a mortgage loan originator, mortgage loan originator company, mortgage servicer, or insurance company is asking the consumer to send money to extend a home warranty, unless the entity includes a clear and conspicuous statement, printed or rendered in bold face fourteen point type and located in a position that is reasonably calculated to draw the attention of the reader, that:

(1) The entity is not affiliated with the mortgage loan originator, mortgage loan originator company, mortgage servicer, or insurance company;

(2) The home warranty being offered is completely optional; and

(3) The consumer's existing benefits, rights, and protections will not be affected by a failure to contact the entity;

provided that if the notice of opt-in is not included in the mail or electronic mail, any contract entered into as a result of the mail or electronic mail shall be voidable at the option of the consumer, and any money paid by the consumer under the contract shall be refunded in full.

(b) As used in this section:

"Entity" means a person, firm, partnership, association, or corporation, or agent or employee thereof.

"Mortgage loan originator" has the same meaning as defined in section 454F-1.

"Mortgage loan originator company" has the same meaning as defined in section 454F-1.

"Mortgage servicer" has the same meaning as defined in section 454M-1."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

Consumer Protection; Vehicle Warranties; Home Warranties; Unsolicited Mail and Electronic Mail; Vehicle Manufacturers; Dealers; Insurers; Mortgage Loan Originators; Mortgage Servicers; Prohibitions

Description:

Prohibits certain entities from distributing unsolicited mail or electronic mail that is reasonably likely to cause a consumer to believe that a vehicle manufacturer, dealer, mortgage loan originator, mortgage servicer, or insurance company is asking the consumer to send money to extend a vehicle warranty or home warranty, unless certain disclosures are met. Makes contracts that fail to meet disclosure requirements voidable at the option of the consumer.

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