1 of 1 HOUSE DOCKET, NO. 1834 FILED ON: 1/15/2025 HOUSE . . . . . . . . . . . . . . . No. 1139 The Commonwealth of Massachusetts _________________ PRESENTED BY: Daniel M. Donahue _________________ To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General Court assembled: The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: An Act relative to motor vehicle service contracts. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :DATE ADDED:Daniel M. Donahue16th Worcester1/15/2025Jacob R. OliveiraHampden, Hampshire and Worcester2/20/2025 1 of 4 HOUSE DOCKET, NO. 1834 FILED ON: 1/15/2025 HOUSE . . . . . . . . . . . . . . . No. 1139 By Representative Donahue of Worcester, a petition (accompanied by bill, House, No. 1139) of Daniel M. Donahue and Jacob R. Oliveira relative to motor vehicle service contracts. Financial Services. [SIMILAR MATTER FILED IN PREVIOUS SESSION SEE HOUSE, NO. 995 OF 2023-2024.] The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Fourth General Court (2025-2026) _______________ An Act relative to motor vehicle service contracts. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: 1 SECTION 1. Section 149M of chapter 175 of the General Laws, as appearing in the 2014 2Official Edition, is hereby amended by inserting after the definition of “consumer” the following 35 definitions:- 4 “Consumer product”, any tangible personal property that is distributed in commerce and 5is normally used for personal, family or household purposes, including tangible personal 6property intended to be attached to or installed in any real property without regard to whether it 7is so attached or installed. 8 “Maintenance agreement”, a contract for regular maintenance. 2 of 4 9 “Motor vehicle manufacturer”, a person who: (i) manufactures, distributes or produces 10motor vehicles under the person’s own name or label; 11 (ii) is a subsidiary of the person who manufactures, distributes or produces motor 12vehicles; (iii) is a corporation which owns 100 per cent of the corporation, association, 13partnership or other legal entity who manufactures, distributes or produces motor vehicles; or 14(iv) does not manufacture, distribute or produce motor vehicles but, pursuant to a written 15contract, licenses the use of its trade name or label to another person who manufactures, 16distributes or produces motor vehicles. 17 SECTION 2. Said section 149M of said chapter 175, as so appearing, is hereby further 18 18amended by striking out the definition of “service contract” and inserting in place thereof the 19 19following definition:- 20 “Service contract”, a contract for a separately stated consideration and for a specific 21duration to perform the service, repair, replacement or maintenance of a consumer product, 22including a motor vehicle, or indemnification for service, repair, replacement or maintenance for 23the operational or structural failure due to a defect in materials or workmanship or normal wear 24and tear, with or without additional provision for incidental payment or indemnity under limited 25circumstances, for related expenses, including, but not limited to, rental and food spoilage; 26provided, however, that a service contract shall also include a contract or agreement sold for a 27separately stated consideration for a specific duration that provides for any of the following: (i) 28the repair or replacement of tires or wheels on a motor vehicle damaged as a result of coming 29into contact with road hazards including, but not limited to, potholes, rocks, wood debris, metal 30parts, glass, plastic, curbs or composite scraps; (ii) the removal of dents, dings or creases on a 3 of 4 31motor vehicle that can be repaired using the process of paintless dent removal without affecting 32the existing paint finish and without replacing vehicle body panels, sanding, bonding or painting; 33or (iii) the repair of small motor vehicle windshield chips or cracks which may include the 34replacement of the windshield for chips or cracks that cannot be repaired; or (iv) the replacement 35of a motor vehicle or key-fob in the event that the key or key-fob becomes inoperable or is lost 36or stolen. 37 SECTION 3. Section 149N of said chapter 175, as so appearing, is hereby amended by 38striking out, in line 100, the words “tangible personal property” and inserting in place thereof the 39following words:- consumer products. 40 SECTION 4. Said chapter 175 is hereby amended by striking out section 149V, as so 41appearing, and inserting in place thereof the following section:- 42 Section 149V. (a) The following shall be exempt from sections 149M to 149W, inclusive: 43(i) warranties, service contracts or maintenance agreements provided by public utilities that are 44regulated by the department of telecommunications and cable or the Federal Communications 45Commission, or by an affiliate of such entity, covering customer wiring, transmission devices 46serviced by such public utility or warranting services provided by such public utility or its 47affiliate; (ii) mechanical breakdown insurance policies offered by insurers otherwise licensed and 48regulated pursuant to the laws and regulations of the commonwealth; (iii) warranties, service 49contracts or other agreements regarding automobiles under which a licensed motor vehicle dealer 50or an affiliate of a licensed motor vehicle dealer is obligated to perform; (iv) warranties offered 51by builders as part of a conveyance of real estate; (v) warranties on a product made by the 52manufacturer, importer or seller of the product; and (vi) maintenance agreements. 4 of 4 53 (b) Motor vehicle manufacturers and service contracts on the motor vehicle 54manufacturer’s products need only comply with sections 149N(f), 149P, 149Q, 149R and 149U, 55as applicable, of this Act, and motor vehicle manufacturers offering service contracts on the 56motor vehicle manufacturer’s products are exempt from licensure under section 149N(c) and the 57requirements of section 149N(d).