CHAPTER 437B REGULATION OF MOTOR VEHICLE REPAIRS

CHAPTER 437B

REGULATION OF MOTOR VEHICLE REPAIRS

SECTION

437B-1 Definitions

437B-2 Applicability of chapter

437B-3 Motor vehicle repair industry board

437B-4 Powers and duties of board

437B-5 Repealed

437B-6 Repealed

437B-7 License required

437B-7.5 Requirements for licensing of repair dealer; inspection

437B-8 Powers to classify and limit license

437B-9 Fees: application; biennial renewals; license; restoration

437B-10 Certified repair dealer

437B-11 Prohibited practices

437B-11.2 Repealed

437b-11.3 Aiding or abetting

437B-11.4 Repealed

437B-11.5 Advertising

437B-12 Enforcement

437B-12.5 Cumulative penalties

437B-13 Invoices; supplying crash parts or used parts; customer's copy

437B-14 Return of replaced parts; exceptions

437B-15 Estimate for labor and parts

437B-16 Records required; inspection

437B-17 Sign required concerning board; notice to customer

437B-18 Repealed

437B-19 Jurisdiction of circuit court; procedure

437B-20 License condition precedent to lien

437B-21 Civil action

437B-22 Failure to comply with chapter; misdemeanor

437B-23 Certification program

437B-23.5 Apprentices and helpers

437B-24 Certification required for mechanics prior to licensure

437B-25 Repealed

437B-26 Bond required to work on salvaged, wrecked, or dismantled motor vehicles;

forfeiture

§437B-1 Definitions. As used in this chapter:

"Board" means the motor vehicle repair industry board.

"Certified mechanic" is a motor vehicle mechanic who has successfully passed the

certification tests in any or all of the certification specialties set forth in this chapter.

Amended 0714 1

"Chlorofluorocarbon" or "CFC" means any member of the family of substances containing

carbon, fluorine, and chlorine, including, without limitation, those compounds known as CFC-11,

CFC-12, CFC-13, CFC-14, CFC-113, CFC-114, CFC-115, CFC-116, CFC-500, CFC-502, and

CFC-503, and any combination or mixture containing any of these chlorofluorocarbon compounds.

"Crash parts" means motor vehicle replacement parts, either sheet metal or plastic, which

constitute the visible exterior of the vehicle, including inner and outer panels, and which are

repaired or replaced as the result of a collision.

"Department" means the department of commerce and consumer affairs.

"Hydrochlorofluorocarbon" or "HCFC" means any member of the family of substances

containing hydrogen, carbon, fluorine, and chlorine, including, without limitation, those compounds

known as HCFC-22 and HCFC-123, and any combination or mixture containing any of these

hydrochlorofluorocarbon compounds.

"Licensed mechanic" means a motor vehicle mechanic who has been licensed in accordance

with this chapter.

"Mobile air conditioner" means an air conditioner designed for installation in a motor

vehicle.

"Motor vehicle" means any passenger car, truck, truck tractor, motorcycle, or motor scooter,

as defined in section 286-2, and the integral parts thereof.

"Motor vehicle mechanic" means any person whether self-employed or employed by

another, who, for compensation, engages in the diagnosis or repair of malfunctions of motor

vehicles, and may be classified as "intermediate" or "journey worker" as the terms are commonly

used in the motor vehicle repair industry.

"Motor vehicle mechanic helper" means any person who, for compensation, engages in the

diagnosis or repair of malfunctions of motor vehicles under the supervision of a licensed motor

vehicle mechanic.

"Motor vehicle repair dealer" means any person who is, or has in the person's employ, a

motor vehicle mechanic licensed under this chapter and who, for compensation, engages in the

business of diagnosing or repairing malfunctions of motor vehicles.

"Refrigerant recovery and recycling equipment" means a device used to recover and to

purify CFCs for later reuse.

"Repair of motor vehicles" means all maintenance of and modifications and repairs to motor

vehicles, including the rebuilding or restoring of rebuilt vehicles as defined in section 286-2, but

excluding repairing tires, changing tires, lubricating vehicles, installing light bulbs, batteries,

windshield wiper blades, and other minor accessories, cleaning, adjusting, and replacing spark

plugs, replacing oil and air filters, and other minor services, which the board by rule determines

may be performed by persons without the skills and knowledge required of motor vehicle

mechanics and helpers. No service shall be designated as minor, for purposes of this section, if the

board finds that performance of the service requires mechanical expertise, has given rise to a high

incidence of fraud or deceptive practices, or involves a part of the vehicle essential to its safe

operation.

§437B-2 Applicability of chapter. This chapter does not apply to:

(1) Employees of the county, state, or federal governments when carrying out the

functions of governmental employment; or

(2) Employees of a commercial or business enterprise who engage in the repair of

motor vehicles which are owned, maintained, and operated exclusively by such

commercial or business enterprise and which are not leased or rented to others;

provided that employees may voluntarily be licensed pursuant to this chapter.

§437B-3 Motor vehicle repair industry board. There shall be a motor vehicle repair

industry board consisting of seven members. Three members of the board shall be persons

connected with the motor vehicle repair industry and at least two of those members shall be motor

vehicle mechanics licensed under this chapter. The remaining four members shall not be connected

with the motor vehicle repair industry.

§437B-4 Powers and duties of board. In addition to any other powers and duties

authorized by law, the board, in accordance with this chapter and chapter 91 shall:

(1) Establish such qualifications for the licensing of motor vehicle repair dealers and

motor vehicle mechanics as may be necessary for the welfare of the public and the

motor vehicle repair industry; provided that no individual shall be licensed as a

motor vehicle mechanic without first receiving certification as provided by this

chapter;

(2) Inquire into the practices and policies of the motor vehicle repair industry and make

rules with respect to such practices and policies as may be deemed important and

necessary by the board for the welfare of the public and the motor vehicle repair

industry;

(3) Develop and administer the certification program provided for in this chapter;

(4) Adopt, amend, and repeal such rules not inconsistent with this chapter, as the board

deems appropriate for effectuating the purpose of this chapter and to ensure the

welfare of the public;

(5) Adopt rules pursuant to chapter 91 necessary to implement the provisions of this

chapter relating to CFCs; and

(6) Enforce this chapter and rules adopted pursuant thereto.

§437B-5 REPEALED.

§437B-6 REPEALED.

§437B-7 License required. On or after January 1, 1976, it shall be unlawful for any

person to engage in the repair of motor vehicles for compensation without being licensed as a motor

vehicle repair dealer or motor vehicle mechanic in accordance with this chapter. Every motor

vehicle repair dealer shall be a motor vehicle mechanic or shall have at least one motor vehicle

mechanic in the dealer's employ. No motor vehicle mechanic shall engage in the repair of motor

vehicles unless that person is also licensed as a motor vehicle repair dealer or unless that person is

in the employ of a motor vehicle repair dealer.

§437B-7.5 Requirements for licensing of repair dealer; inspection. (a) Before a motor

vehicle repair dealer license is granted by the board, the applicant shall establish that the applicant

is or employs a full-time motor vehicle mechanic licensed with the board, and has a repair facility

and the equipment necessary to properly perform work in the specialty or area of certification for

which licensure is requested.

(b) The board may inspect an applicant's repair facility and equipment prior to licensing,

and may conduct subsequent inspections of repair facilities to verify continued compliance with

subsection (a).

§437B-8 Powers to classify and limit license. (a) The board shall adopt rules necessary to

effect the classification of motor vehicle mechanics in a manner consistent with the certification

program established by this chapter, and shall limit the motor vehicle repair activities of a licensee

to those areas for which the licensee is certified or licensed.

(b) An applicant may make application for [licensure] in more than one classification if

the applicant is certified for each classification and otherwise meets the qualification for [licensure]

as prescribed by the board. If the applicant is licensed for more than one classification, the

applicant shall pay the license fee but shall not be required to pay any additional license fee.

§437B-9 Fees: application; biennial renewals; license; restoration. (a) The fees for

each application, original biennial license, and renewal for the motor vehicle repair dealer and the

motor vehicle mechanic shall be as provided in rules adopted by the department pursuant to chapter

91. At the time of license renewal, each licensee shall submit a completed renewal application and

all applicable fees, and shall demonstrate continued compliance with all license and certification

requirements.

(b) Any motor vehicle repair dealer maintaining more than one motor vehicle repair

facility shall separately license each repair facility, providing the name of the full-time motor

vehicle mechanic for the facility, and pay a fee for each facility.

odd-numbered year. Failure, neglect, or refusal of any licensee to pay the biennial renewal fee

before the date shall constitute a forfeiture of the license. Any license may be restored within one

year after the date of forfeiture upon compliance with the renewal requirements and upon written

application and the payment of the required fee plus an amount equal to fifty per cent thereof. Any

licensee who fails to restore a license within one year from the date of forfeiture shall reapply for a

license as a new applicant.

§437B-10 Certified repair dealer. A dealer is a licensed and certified motor vehicle

repair dealer if not less than fifty per cent of the mechanics employed by the dealer on a full-time

basis are licensed-certified mechanics.

§437B-11 Prohibited practices. In addition to any other grounds for disciplinary action

authorized by law, the following acts or omissions related to the repair of motor vehicles shall be

grounds for invoking the enforcement procedures of section 437B-12:

(1) Making or authorizing in any manner or by any means whatever any statement

written or oral which is untrue or misleading, and which is known, or which by the

exercise of reasonable care should be known, to be untrue or misleading;

(2) Causing or allowing a customer to sign any work order that does not state the repairs

requested by the customer or the automobile's odometer reading at the time of

repair;

(3) Failing or refusing to give to a customer a copy of any document requiring the

customer's signature, as soon as the customer signs the document;

(4) Any other conduct that constitutes fraud;

(5) Conduct constituting gross negligence;

(6) Failure to comply with this chapter or rules adopted pursuant to it;

(7) Any wilful departure from or disregard of accepted practices or professional

standards;

(8) Making false promises of a character likely to influence, persuade, or induce a

customer to authorize the repair, service, or maintenance of a motor vehicle;

(9) Having repair work subcontracted without the knowledge or consent of the

customer unless the motor vehicle repair dealer, mechanic, or apprentice

demonstrates that the customer could not reasonably have been notified;

(10) Conducting the business of motor vehicle repair in a place other than stated on the

license except that mobile repair facilities may be permitted if the license so

indicates;

(11) Rebuilding or restoring of rebuilt vehicles as defined in section 286-2 in such a

manner that it does not conform to the original vehicle manufacturer's established

repair procedures or specifications and allowable tolerances for the particular model

and year;

(12) Subcontracting, recommending, or referring motor vehicle repair work to, or in any

way assisting, a motor vehicle repair dealer or mechanic whose license or

certification is not in full compliance with this chapter;

(13) Failure to directly supervise a motor vehicle mechanic apprentice/trainee or motor

vehicle mechanic helper;

(14) Servicing mobile air conditioners without using refrigerant recovery and recycling

equipment that is certified by Underwriter Laboratories, Incorporated or was in use

by the motor vehicle repair industry prior to December 31, 1989;

(15) Performing service on any motor vehicle or mobile air conditioner after January 1,

1994, without successful completion of an appropriate training course in the

recovery and recycling of CFC and HCFC refrigerants, which included instruction

in the proper use of refrigerant recovery and recycling equipment that is certified by

Underwriter Laboratories, Incorporated; and

(16) Violating chapter 342C.

§437B-11.2 REPEALED.

§437B-11.3 Aiding or abetting. Aiding or abetting an unlicensed person to evade this

chapter or knowingly combining or conspiring with an unlicensed person, or allowing one's license

to be used by an unlicensed person, or acting as agent or partner or associate, or otherwise, of an

unlicensed person with the intent to evade this chapter, shall be a misdemeanor.

§437B-11.4 REPEALED.

§437B-11.5 Advertising. No motor vehicle repair dealer shall advertise unless it holds a

valid motor vehicle repair dealer license issued under this chapter. Advertisement includes, but is

not limited to, the issuance of any card, sign, or device to any person, the causing, permitting, or

allowing of any sign or marking on or in any building or structure, or newspaper or magazine, or

directory under the listing of motor vehicle repair dealer, or broadcasting by airwave transmission

which relates to the motor vehicle repair business.

§437B-12 Enforcement. (a) In addition to any other actions authorized by law, in

accordance with chapter 91, the board may fine, suspend, revoke, or refuse to renew the license of a

motor vehicle repair dealer or mechanic for any violation of this chapter or rules adopted pursuant

thereto. The board may also order restitution as provided in subsection (c).

(b) Any fine that is imposed shall be not less than $100 nor more than $2,500 for each

violation.

the motor vehicle repair dealer or mechanic to make restitution to the customer. Restitution may be

imposed in lieu of a fine even though the amount may exceed the maximum fine set forth in

subsection (b).

(d) If a motor vehicle repair dealer operates more than one motor vehicle repair facility

in this State, the board pursuant to subsection (a) may only revoke, suspend, or refuse to renew the

license of the specific motor vehicle repair facility that has violated this chapter. The violation, or

the action by the board, shall not affect in any manner the right of the motor vehicle repair dealer to

operate the dealer's other motor vehicle repair facilities; provided that the board may suspend,

revoke, or refuse to renew the license for all motor vehicle repair facilities operated in this State by

a motor vehicle repair dealer upon a finding that the motor vehicle repair dealer has, or is, engaged

in a course of repeated and wilful violations of this chapter, or rules adopted pursuant thereto.

(e) Each:

(1) Mobile air conditioner serviced without using refrigerant recovery and recycling

equipment;

(2) Motor vehicle or mobile air conditioner serviced after January 1, 1994, without

successful completion of an appropriate training course dealing with the recovery

and recycling of CFC and HCFC refrigerants; and

(3) Violation of chapter 342C; constitutes a separate offense for which fines may be

imposed under subsection (b).

[§437B-12.5] Cumulative penalties. Unless otherwise expressly provided, the remedies

or penalties provided by this chapter are cumulative to each other and to the remedies or penalties

available under all other laws of this State.

§437B-13 Invoices; supplying crash parts or used parts; customer's copy. All work

done by a motor vehicle repair dealer, mechanic, or apprentice, including all warranty work, shall

be recorded on an invoice and shall describe all service work done and parts supplied. Service work

and parts shall be listed separately on the invoice, which shall also state separately the subtotal

prices for service work and for parts, not including the general excise tax, and shall state separately

the tax, if any, applicable to parts and service work. If any crash, used, rebuilt, or reconditioned

parts are supplied, the invoice shall clearly state that fact. If a part of a component system is

composed of new and used, crash, rebuilt, or reconditioned parts, the invoice shall clearly state that

fact. One copy shall be given to the customer and one copy shall be retained by the motor vehicle

repair dealer.

[§437B-14] Return of replaced parts; exceptions. Upon request of the customer at the

time the work order is taken, the motor vehicle repair dealer, mechanic, or apprentice shall return

replaced parts to the customer at the time of the completion of the work excepting such parts as

may be exempt because of size, weight, or other similar factors from this requirement by rule of the

board and excepting such parts as the motor vehicle repair dealer, mechanic, or apprentice is

required to return to the manufacturer or distributor under a warranty arrangement. If the parts must

be returned to the manufacturer or distributor, the dealer, mechanic, or apprentice at the time the

work order is taken shall offer to show, and upon acceptance of the offer, shall show the parts to the

customer upon completion of the work, except that the dealer shall not be required to show a

replaced part when no charge is being made for the replacement part.

§437B-15 Estimate for labor and parts. (a) The motor vehicle repair dealer, mechanic,

or apprentice shall give the customer a written estimated price for labor and parts necessary for a

specific job prior to commencement of the job. Such written estimated price need not be given if

waived in writing by the customer. No charge in excess of fifteen per cent of the estimated price, if

the estimated price is less than $100, or ten per cent of the estimated price, if the estimated price is

in excess of $100, shall be charged for parts and labor supplied in excess of the estimated price,

without the prior written or oral consent of the customer. Such consent shall be obtained at some

time after it is determined that the estimated price is insufficient and before the labor not estimated

is performed or the parts not estimated are supplied. This provision may be waived in writing by

the customer, provided that such waiver by its terms shall be effective only after the dealer or

mechanic has made reasonable efforts to contact the customer. The form and content of any waiver

shall be as prescribed by rule of the board. Nothing in this section shall be construed as requiring a

motor vehicle repair dealer, mechanic, or apprentice to give a written estimated price if the dealer,

mechanic, or apprentice does not agree to perform the requested service. A reasonable fee may be

charged for making the estimate.

(b) If any crash parts manufactured by anyone other than the original vehicle equipment

manufacturer are to be supplied or installed, the estimate shall clearly state that fact and identify

each of those crash parts. In identifying the crash parts which are not manufactured by the original

vehicle equipment manufacturer, the motor vehicle repair dealer, mechanic, or apprentice may

include information on any applicable manufacturer's warranty and information about the part's

compliance with any certified testing program.

are not manufactured or supplied by the original vehicle equipment manufacturer unless the owner

of the motor vehicle accepts the use of such parts and signs the estimate acknowledging the use and

source of the crash parts.

[§437B-16] Records required; inspection. Each motor vehicle repair dealer shall

maintain such records as are required by rules adopted by the board. The records shall be open for

reasonable inspection by the board or other law enforcement officials. All such records shall be

maintained for at least two years.

[§437B-17] Sign required concerning board; notice to customer. The board shall

design and approve of a sign which shall be placed in all motor vehicle repair dealer locations in a

place and manner conspicuous to the public. Such sign shall give notice that inquiries concerning

service may be made to the board and shall contain the telephone number of the board. The sign

shall also give notice that the customer is entitled to a return of replaced parts upon the customer's

request therefor at the time the work order is taken.

§437B-18 REPEALED.

[§437B-19] Jurisdiction of circuit court; procedure. The circuit court of the judicial

circuit in which any person carries on, or attempts to carry on, business as a motor vehicle repair

dealer or acts or holds oneself out as a motor vehicle mechanic or motor vehicle mechanic

apprentice in violation of this chapter, or any rule made pursuant to this chapter, shall on

application of the board, issue an injunction or other appropriate order restraining such conduct.

The proceedings under this section shall be governed by the Hawaii Rules of Civil

Procedure, except that no undertaking shall be required, and the board shall not be required to

allege facts necessary to show or tending to show lack of an adequate remedy at law or irreparable

injury.

§437B-20 License condition precedent to lien. No person required to be licensed under

this chapter shall have the benefit of any lien for labor or materials or the right to sue on a contract

for motor vehicle repairs done by the person unless the person was licensed at the time the person

performed the contract.

[§437B-21] Civil action. Nothing in this chapter shall prohibit the bringing of a civil

action against a motor vehicle repair dealer, mechanic, or apprentice by an individual.

[§437B-22] Failure to comply with chapter; misdemeanor. Any person who fails to

comply with the provisions of this chapter is guilty of a misdemeanor.

§437B-23 Certification program. (a) The board, at its sole discretion, may enter into

written agreements with entities, educational institutions, and other organizations to develop and

administer a certification program for motor vehicle mechanics that will provide education and

training in order to ensure that the mechanics' knowledge, skills, and abilities are current with

industry standards. The entities, educational institutions, and other organizations shall have the

range of expertise, knowledge, and structure to provide instruction, information, guidance, and

services to assist mechanics in obtaining necessary competencies to engage in motor vehicle repairs

in order to protect consumers. Alternatively, the board may accept certificates from a national

certification program approved by the board without the need to contract with the organization that

administers the national certification program.

(b) The certification program shall provide for issuing a certificate to mechanics

generally skilled in the repair of motor vehicles and to mechanics who specialize in certain areas of

motor vehicle repair. An individual may be certified as being generally skilled in the repair of

motor vehicles, specially skilled in one or more areas of motor vehicle repair, or both. Each area

shall be separately tested and certified. The program shall provide for apprenticeship leading to

certification as a mechanic. The program may be an apprenticeship program registered with the

department of labor and industrial relations in accordance with applicable governing law. Nothing

in this section or chapter shall prevent a student in a course leading to certification from repairing

motor vehicles so long as the student is supervised by a mechanic who is licensed in accordance

with this chapter.

orally at the request of the individual being tested. Each application for certification shall be

accompanied by a nonrefundable examination fee as provided in rules adopted by the department

pursuant to chapter 91.

(d) There shall be no limit on the number of times an individual may apply for

certification; provided that an applicant who does not pass the examination shall wait at least thirty

calendar days before being eligible to retake the test.

(e) All individuals who take and pass the certification test shall be awarded a certificate

which shall be posted in a prominent place at the individual’s place of business or employment and

a patch which may be worn on clothing apparel. The entity, educational institution, or other

organization who has entered into a written agreement with the board or been approved by the

board pursuant to subsection (a) shall design and procure the certificate and patch.

§437B-23.5 Apprentices and helpers. It shall be unlawful for any motor vehicle

mechanic apprentice/trainee or motor vehicle mechanic helper to assist a motor vehicle repair

dealer or motor vehicle mechanic unless the apprentice or helper works under the direct supervision

of a licensed or certified motor vehicle repair dealer or motor vehicle mechanic. All motor vehicle

mechanic apprentices/trainees and motor vehicle helpers shall be assigned to and shall be the

responsibility of a licensed or certified motor vehicle mechanic, provided that each licensed or

certified mechanic shall have assigned to the mechanic not more than a total of five

apprentices/trainees or helpers. In the event that a motor vehicle mechanic, who is assigned one or

more motor vehicle mechanic apprentices/trainees or motor vehicle helpers, is terminated from

employment, the motor vehicle repair dealer shall have thirty days to replace the motor vehicle

mechanic in order to reassign the apprentices/trainees or helpers.

§437B-24 Certification required for mechanics prior to [licensure]. (a) Except as

provided in subsection (b) below, every mechanic applying for [licensure] shall have passed the

appropriate certification test provided for in this chapter.

(b) Notwithstanding any provision of this chapter, any person who has been engaged as

a motor vehicle mechanic for a period of at least two years prior to January 1, 1976, and who has

applied for [licensure] as a motor vehicle mechanic under this chapter on or before June 30, 1976,

shall not be required to take the certification test prescribed in this chapter prior to [licensure].

§437B-25 REPEALED.

§437B-26 Bond required to work on salvaged, wrecked, or dismantled motor vehicles;

forfeiture. (a) Any motor vehicle repair dealer desiring to engage in the business of restoring or

rebuilding salvaged, wrecked, or dismantled vehicles shall submit to the board a performance bond,

with corporate surety satisfactory to the board. The amount of the bond shall be not less than

$25,000 and the condition of the bond shall be the satisfactory rebuilding or restoration of salvaged,

wrecked, or dismantled vehicles.

(b) When the board finds that a licensee has wilfully departed from or disregarded

accepted practices of workmanship with respect to work performed under section 437B-11(11), the

board may, in accordance with chapter 91, order the forfeiture to the State of the performance bond

submitted under subsection (a).

automatic suspension of the license effective as of the date of expiration or cancellation of the bond.

The license shall not be reinstated until a bond as required under this section is received by the

board.

Failure to effect a reinstatement of a suspended license within sixty days of the suspension

shall cause the license to be terminated, thereby forfeiting all license and biennial renewal fees.

A licensee may, within fifteen calendar days after receipt of notification of the license

termination, request an administrative hearing pursuant to chapter 91 to review the termination.