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2 | 2 | | HOUSE DOCKET, NO. 1834 FILED ON: 1/15/2025 |
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3 | 3 | | HOUSE . . . . . . . . . . . . . . . No. 1139 |
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4 | 4 | | The Commonwealth of Massachusetts |
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5 | 5 | | _________________ |
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6 | 6 | | PRESENTED BY: |
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7 | 7 | | Daniel M. Donahue |
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8 | 8 | | _________________ |
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9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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10 | 10 | | Court assembled: |
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11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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12 | 12 | | An Act relative to motor vehicle service contracts. |
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13 | 13 | | _______________ |
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14 | 14 | | PETITION OF: |
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15 | 15 | | NAME:DISTRICT/ADDRESS :DATE ADDED:Daniel M. Donahue16th Worcester1/15/2025Jacob R. OliveiraHampden, Hampshire and Worcester2/20/2025 1 of 4 |
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16 | 16 | | HOUSE DOCKET, NO. 1834 FILED ON: 1/15/2025 |
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17 | 17 | | HOUSE . . . . . . . . . . . . . . . No. 1139 |
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18 | 18 | | By Representative Donahue of Worcester, a petition (accompanied by bill, House, No. 1139) of |
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19 | 19 | | Daniel M. Donahue and Jacob R. Oliveira relative to motor vehicle service contracts. Financial |
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20 | 20 | | Services. |
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21 | 21 | | [SIMILAR MATTER FILED IN PREVIOUS SESSION |
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22 | 22 | | SEE HOUSE, NO. 995 OF 2023-2024.] |
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23 | 23 | | The Commonwealth of Massachusetts |
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24 | 24 | | _______________ |
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25 | 25 | | In the One Hundred and Ninety-Fourth General Court |
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26 | 26 | | (2025-2026) |
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27 | 27 | | _______________ |
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28 | 28 | | An Act relative to motor vehicle service contracts. |
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29 | 29 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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30 | 30 | | of the same, as follows: |
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31 | 31 | | 1 SECTION 1. Section 149M of chapter 175 of the General Laws, as appearing in the 2014 |
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32 | 32 | | 2Official Edition, is hereby amended by inserting after the definition of “consumer” the following |
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33 | 33 | | 35 definitions:- |
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34 | 34 | | 4 “Consumer product”, any tangible personal property that is distributed in commerce and |
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35 | 35 | | 5is normally used for personal, family or household purposes, including tangible personal |
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36 | 36 | | 6property intended to be attached to or installed in any real property without regard to whether it |
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37 | 37 | | 7is so attached or installed. |
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38 | 38 | | 8 “Maintenance agreement”, a contract for regular maintenance. 2 of 4 |
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39 | 39 | | 9 “Motor vehicle manufacturer”, a person who: (i) manufactures, distributes or produces |
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40 | 40 | | 10motor vehicles under the person’s own name or label; |
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41 | 41 | | 11 (ii) is a subsidiary of the person who manufactures, distributes or produces motor |
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42 | 42 | | 12vehicles; (iii) is a corporation which owns 100 per cent of the corporation, association, |
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43 | 43 | | 13partnership or other legal entity who manufactures, distributes or produces motor vehicles; or |
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44 | 44 | | 14(iv) does not manufacture, distribute or produce motor vehicles but, pursuant to a written |
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45 | 45 | | 15contract, licenses the use of its trade name or label to another person who manufactures, |
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46 | 46 | | 16distributes or produces motor vehicles. |
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47 | 47 | | 17 SECTION 2. Said section 149M of said chapter 175, as so appearing, is hereby further 18 |
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48 | 48 | | 18amended by striking out the definition of “service contract” and inserting in place thereof the 19 |
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49 | 49 | | 19following definition:- |
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50 | 50 | | 20 “Service contract”, a contract for a separately stated consideration and for a specific |
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51 | 51 | | 21duration to perform the service, repair, replacement or maintenance of a consumer product, |
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52 | 52 | | 22including a motor vehicle, or indemnification for service, repair, replacement or maintenance for |
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53 | 53 | | 23the operational or structural failure due to a defect in materials or workmanship or normal wear |
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54 | 54 | | 24and tear, with or without additional provision for incidental payment or indemnity under limited |
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55 | 55 | | 25circumstances, for related expenses, including, but not limited to, rental and food spoilage; |
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56 | 56 | | 26provided, however, that a service contract shall also include a contract or agreement sold for a |
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57 | 57 | | 27separately stated consideration for a specific duration that provides for any of the following: (i) |
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58 | 58 | | 28the repair or replacement of tires or wheels on a motor vehicle damaged as a result of coming |
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59 | 59 | | 29into contact with road hazards including, but not limited to, potholes, rocks, wood debris, metal |
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60 | 60 | | 30parts, glass, plastic, curbs or composite scraps; (ii) the removal of dents, dings or creases on a 3 of 4 |
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61 | 61 | | 31motor vehicle that can be repaired using the process of paintless dent removal without affecting |
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62 | 62 | | 32the existing paint finish and without replacing vehicle body panels, sanding, bonding or painting; |
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63 | 63 | | 33or (iii) the repair of small motor vehicle windshield chips or cracks which may include the |
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64 | 64 | | 34replacement of the windshield for chips or cracks that cannot be repaired; or (iv) the replacement |
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65 | 65 | | 35of a motor vehicle or key-fob in the event that the key or key-fob becomes inoperable or is lost |
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66 | 66 | | 36or stolen. |
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67 | 67 | | 37 SECTION 3. Section 149N of said chapter 175, as so appearing, is hereby amended by |
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68 | 68 | | 38striking out, in line 100, the words “tangible personal property” and inserting in place thereof the |
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69 | 69 | | 39following words:- consumer products. |
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70 | 70 | | 40 SECTION 4. Said chapter 175 is hereby amended by striking out section 149V, as so |
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71 | 71 | | 41appearing, and inserting in place thereof the following section:- |
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72 | 72 | | 42 Section 149V. (a) The following shall be exempt from sections 149M to 149W, inclusive: |
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73 | 73 | | 43(i) warranties, service contracts or maintenance agreements provided by public utilities that are |
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74 | 74 | | 44regulated by the department of telecommunications and cable or the Federal Communications |
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75 | 75 | | 45Commission, or by an affiliate of such entity, covering customer wiring, transmission devices |
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76 | 76 | | 46serviced by such public utility or warranting services provided by such public utility or its |
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77 | 77 | | 47affiliate; (ii) mechanical breakdown insurance policies offered by insurers otherwise licensed and |
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78 | 78 | | 48regulated pursuant to the laws and regulations of the commonwealth; (iii) warranties, service |
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79 | 79 | | 49contracts or other agreements regarding automobiles under which a licensed motor vehicle dealer |
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80 | 80 | | 50or an affiliate of a licensed motor vehicle dealer is obligated to perform; (iv) warranties offered |
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81 | 81 | | 51by builders as part of a conveyance of real estate; (v) warranties on a product made by the |
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82 | 82 | | 52manufacturer, importer or seller of the product; and (vi) maintenance agreements. 4 of 4 |
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83 | 83 | | 53 (b) Motor vehicle manufacturers and service contracts on the motor vehicle |
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84 | 84 | | 54manufacturer’s products need only comply with sections 149N(f), 149P, 149Q, 149R and 149U, |
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85 | 85 | | 55as applicable, of this Act, and motor vehicle manufacturers offering service contracts on the |
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86 | 86 | | 56motor vehicle manufacturer’s products are exempt from licensure under section 149N(c) and the |
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87 | 87 | | 57requirements of section 149N(d). |
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