Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H1139 Compare Versions

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22 HOUSE DOCKET, NO. 1834 FILED ON: 1/15/2025
33 HOUSE . . . . . . . . . . . . . . . No. 1139
44 The Commonwealth of Massachusetts
55 _________________
66 PRESENTED BY:
77 Daniel M. Donahue
88 _________________
99 To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
1010 Court assembled:
1111 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
1212 An Act relative to motor vehicle service contracts.
1313 _______________
1414 PETITION OF:
1515 NAME:DISTRICT/ADDRESS :DATE ADDED:Daniel M. Donahue16th Worcester1/15/2025Jacob R. OliveiraHampden, Hampshire and Worcester2/20/2025 1 of 4
1616 HOUSE DOCKET, NO. 1834 FILED ON: 1/15/2025
1717 HOUSE . . . . . . . . . . . . . . . No. 1139
1818 By Representative Donahue of Worcester, a petition (accompanied by bill, House, No. 1139) of
1919 Daniel M. Donahue and Jacob R. Oliveira relative to motor vehicle service contracts. Financial
2020 Services.
2121 [SIMILAR MATTER FILED IN PREVIOUS SESSION
2222 SEE HOUSE, NO. 995 OF 2023-2024.]
2323 The Commonwealth of Massachusetts
2424 _______________
2525 In the One Hundred and Ninety-Fourth General Court
2626 (2025-2026)
2727 _______________
2828 An Act relative to motor vehicle service contracts.
2929 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
3030 of the same, as follows:
3131 1 SECTION 1. Section 149M of chapter 175 of the General Laws, as appearing in the 2014
3232 2Official Edition, is hereby amended by inserting after the definition of “consumer” the following
3333 35 definitions:-
3434 4 “Consumer product”, any tangible personal property that is distributed in commerce and
3535 5is normally used for personal, family or household purposes, including tangible personal
3636 6property intended to be attached to or installed in any real property without regard to whether it
3737 7is so attached or installed.
3838 8 “Maintenance agreement”, a contract for regular maintenance. 2 of 4
3939 9 “Motor vehicle manufacturer”, a person who: (i) manufactures, distributes or produces
4040 10motor vehicles under the person’s own name or label;
4141 11 (ii) is a subsidiary of the person who manufactures, distributes or produces motor
4242 12vehicles; (iii) is a corporation which owns 100 per cent of the corporation, association,
4343 13partnership or other legal entity who manufactures, distributes or produces motor vehicles; or
4444 14(iv) does not manufacture, distribute or produce motor vehicles but, pursuant to a written
4545 15contract, licenses the use of its trade name or label to another person who manufactures,
4646 16distributes or produces motor vehicles.
4747 17 SECTION 2. Said section 149M of said chapter 175, as so appearing, is hereby further 18
4848 18amended by striking out the definition of “service contract” and inserting in place thereof the 19
4949 19following definition:-
5050 20 “Service contract”, a contract for a separately stated consideration and for a specific
5151 21duration to perform the service, repair, replacement or maintenance of a consumer product,
5252 22including a motor vehicle, or indemnification for service, repair, replacement or maintenance for
5353 23the operational or structural failure due to a defect in materials or workmanship or normal wear
5454 24and tear, with or without additional provision for incidental payment or indemnity under limited
5555 25circumstances, for related expenses, including, but not limited to, rental and food spoilage;
5656 26provided, however, that a service contract shall also include a contract or agreement sold for a
5757 27separately stated consideration for a specific duration that provides for any of the following: (i)
5858 28the repair or replacement of tires or wheels on a motor vehicle damaged as a result of coming
5959 29into contact with road hazards including, but not limited to, potholes, rocks, wood debris, metal
6060 30parts, glass, plastic, curbs or composite scraps; (ii) the removal of dents, dings or creases on a 3 of 4
6161 31motor vehicle that can be repaired using the process of paintless dent removal without affecting
6262 32the existing paint finish and without replacing vehicle body panels, sanding, bonding or painting;
6363 33or (iii) the repair of small motor vehicle windshield chips or cracks which may include the
6464 34replacement of the windshield for chips or cracks that cannot be repaired; or (iv) the replacement
6565 35of a motor vehicle or key-fob in the event that the key or key-fob becomes inoperable or is lost
6666 36or stolen.
6767 37 SECTION 3. Section 149N of said chapter 175, as so appearing, is hereby amended by
6868 38striking out, in line 100, the words “tangible personal property” and inserting in place thereof the
6969 39following words:- consumer products.
7070 40 SECTION 4. Said chapter 175 is hereby amended by striking out section 149V, as so
7171 41appearing, and inserting in place thereof the following section:-
7272 42 Section 149V. (a) The following shall be exempt from sections 149M to 149W, inclusive:
7373 43(i) warranties, service contracts or maintenance agreements provided by public utilities that are
7474 44regulated by the department of telecommunications and cable or the Federal Communications
7575 45Commission, or by an affiliate of such entity, covering customer wiring, transmission devices
7676 46serviced by such public utility or warranting services provided by such public utility or its
7777 47affiliate; (ii) mechanical breakdown insurance policies offered by insurers otherwise licensed and
7878 48regulated pursuant to the laws and regulations of the commonwealth; (iii) warranties, service
7979 49contracts or other agreements regarding automobiles under which a licensed motor vehicle dealer
8080 50or an affiliate of a licensed motor vehicle dealer is obligated to perform; (iv) warranties offered
8181 51by builders as part of a conveyance of real estate; (v) warranties on a product made by the
8282 52manufacturer, importer or seller of the product; and (vi) maintenance agreements. 4 of 4
8383 53 (b) Motor vehicle manufacturers and service contracts on the motor vehicle
8484 54manufacturer’s products need only comply with sections 149N(f), 149P, 149Q, 149R and 149U,
8585 55as applicable, of this Act, and motor vehicle manufacturers offering service contracts on the
8686 56motor vehicle manufacturer’s products are exempt from licensure under section 149N(c) and the
8787 57requirements of section 149N(d).