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Dealers, startups and repair associations clash as House advances right-to-repair bill and defers franchise overhaul
Summary
The House Transportation Committee deferred HB 938 on direct manufacturer sales after extensive testimony from dealers, EV startups and industry groups, and moved HB 1464 (access to vehicle repair data) with amendments that remove duplicative codification of an existing industry agreement.
Lawmakers heard extensive testimony Jan. 30 on two related sets of bills affecting the motor-vehicle market: HB 938, which would update the Motor Vehicle Industry Licensing Act and touch on direct manufacturer sales and related dealer protections, and HB 1464, a right-to-repair bill that would require access to vehicle diagnostic and repair information by owners and independent repair shops.
HB 938 drew broad and sharply divided testimony. Automakers and EV startups urged the committee to preserve the ability to sell directly to consumers. "HB 938 threatens to slow or even stop all of that progress," said Cody Thacker of Scout Motors, describing his company’s plans to bring low-cost electric trucks to market and to sell direct to consumers. Trade groups and dealers countered the bill would upend a franchise framework they say protects consumers and local businesses. "The purpose of the motor vehicle franchise law is to ensure that the relationship between manufacturers and dealers is fair and equitable for the benefit of consumers," said Melissa Pavlicek of the Hawaii Automobile Dealers Association. The Alliance for Automotive Innovation and multiple OEMs filed opposition testimony, and both Uber and Lyft provided separate testimony on TNC and motor-carrier topics later in the agenda.
After hearing stakeholders, the committee chair said HB 938 needs significant refinement and consensus and deferred the bill for further negotiation. "This measure honestly needs a lot of refinement and the compromise is clearly needed," the chair said when announcing the deferral.
By contrast, HB 1464, addressing access to repair data, garnered significant support from independent repair and aftermarket groups. Todd Moore of the Auto Care Association told lawmakers the bill is intended to protect vehicle owners’ choice of repair provider and to ensure access to diagnostic data as cars become more connected. Industry opponents including manufacturers and dealer groups said protections and private agreements exist; Tiffany Yajima of the Alliance for Automotive Innovation said the industry opposes the bill as drafted but is willing to work toward consensus.
The committee adopted HD 1 for HB 1464 and stripped pages of proposed codification that duplicate an existing national memorandum of understanding; committee report language will note possible motorcycle exclusions and that the Department of Commerce and Consumer Affairs should handle civil enforcement for violations. The chair also asked stakeholders to follow up with the committee about specific repair scenarios raised by members, including cost and access issues on neighbor islands.
Ending: HB 938 was deferred to allow further stakeholder talks and potential crossover with a Senate vehicle, while HB 1464 advanced with amendments and committee guidance for follow-up work with DCCA and industry parties.
