Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H1293 Compare Versions

Only one version of the bill is available at this time.

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1	1	1 of 1
2	2	HOUSE DOCKET, NO. 809 FILED ON: 1/13/2025
3	3	HOUSE . . . . . . . . . . . . . . . No. 1293
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Angelo J. Puppolo, Jr.
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act relative to preserving consumer choice in the purchase of motor vehicle service
13	13	contracts.
14	14	_______________
15	15	PETITION OF:
16	16	NAME:DISTRICT/ADDRESS :DATE ADDED:Angelo J. Puppolo, Jr.12th Hampden1/13/2025 1 of 5
17	17	HOUSE DOCKET, NO. 809 FILED ON: 1/13/2025
18	18	HOUSE . . . . . . . . . . . . . . . No. 1293
19	19	By Representative Puppolo of Springfield, a petition (accompanied by bill, House, No. 1293) of
20	20	Angelo J. Puppolo, Jr. relative to motor vehicle service contracts. Financial Services.
21	21	The Commonwealth of Massachusetts
22	22	_______________
23	23	In the One Hundred and Ninety-Fourth General Court
24	24	(2025-2026)
25	25	_______________
26	26	An Act relative to preserving consumer choice in the purchase of motor vehicle service
27	27	contracts.
28	28	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
29	29	of the same, as follows:
30	30	1 SECTION 1. Section 149M of chapter 175 of the General Laws, is hereby amended by
31	31	2inserting after the definition of “consumer” the following 5 definitions:-
32	32	3 “Consumer product”, any tangible personal property that is distributed in commerce and
33	33	4is normally used for personal, family or household purposes, including tangible personal
34	34	5property intended to be attached to or installed in any real property without regard to whether it
35	35	6is so attached or installed.
36	36	7 “Maintenance agreement”, a contract for regular maintenance.
37	37	8 “Motor vehicle distributor”, any person who is not a motor vehicle manufacturer or a
38	38	9motor vehicle dealer and who sells or distributes new and unused motor vehicles to motor
39	39	10vehicle dealers within the commonwealth or to a wholesaler who in turn sells or distributes such
40	40	11vehicles to motor vehicle dealers within the commonwealth; provided, however, that “motor
41	41	12vehicle distributor” shall include any branch office or division maintained by any corporation, 2 of 5
42	42	13association, partnership or other legal entity for directing and supervising their franchisor
43	43	14representatives.
44	44	15 “Motor vehicle franchisor representative”, a person employed by a motor vehicle
45	45	16manufacturer or distributor to promote the sale of new motor vehicles or for supervising,
46	46	17servicing, instructing or contracting motor vehicle dealers or prospective motor vehicle dealers
47	47	18and any officer, agent or other authorized representative of a manufacturer or distributor.
48	48	19 “Motor vehicle manufacturer”, a person who: (i) manufactures or produces motor
49	49	20vehicles under the person’s own name or label; (ii) is a subsidiary of the person who
50	50	21manufactures or produces motor vehicles; (iii) is a corporation which owns 100 per cent of the
51	51	22corporation, association, partnership or other legal entity who manufactures or produces motor
52	52	23vehicles; or (iv) does not manufacture or produce motor vehicles but, pursuant to a written
53	53	24contract, licenses the use of its trade name or label to another person who manufactures or
54	54	25produces motor vehicles.
55	55	26 SECTION 2. Said section 149M of said chapter 175, as so appearing, is hereby further
56	56	27amended by striking out the definition of “service contract” and inserting in place thereof the
57	57	28following definition:-
58	58	29 “Service contract”, a contract for a separately stated consideration and for a specific
59	59	30duration to perform the service, repair, replacement or maintenance of a consumer product,
60	60	31including a motor vehicle, or indemnification for service, repair, replacement or maintenance for
61	61	32the operational or structural failure due to a defect in materials or workmanship or normal wear
62	62	33and tear, with or without additional provision for incidental payment or indemnity under limited
63	63	34circumstances, for related expenses, including, but not limited to, rental and food spoilage; 3 of 5
64	64	35provided, however, that a service contract shall also include a contract or agreement sold for a
65	65	36separately stated consideration for a specific duration that provides for any of the following: (i)
66	66	37the repair or replacement of tires or wheels on a motor vehicle damaged as a result of coming
67	67	38into contact with road hazards including, but not limited to, potholes, rocks, wood debris, metal
68	68	39parts, glass, plastic, curbs or composite scraps; (ii) the removal of dents, dings or creases on a
69	69	40motor vehicle that can be repaired using the process of paintless dent removal without affecting
70	70	41the existing paint finish and without replacing vehicle body panels, sanding, bonding or painting;
71	71	42(iii) the repair of small motor vehicle windshield chips or cracks which may include the
72	72	43replacement of the windshield for chips or cracks that cannot be repaired; or (iv) the repair of
73	73	44damage to the interior components of a motor vehicle caused by wear and tear but which shall
74	74	45expressly exclude the replacement of any part or component of a motor vehicle’s interior.
75	75	46 SECTION 3. Section 149N of said chapter 175, as so appearing, is hereby amended by
76	76	47striking out, in line 100, the words “tangible personal property” and inserting in place thereof the
77	77	48following words:- consumer products.
78	78	49 SECTION 4. Section 149U of said chapter 175, as so appearing, is hereby amended by
79	79	50adding the following subsection:-
80	80	51 (c) It shall be an unfair or deceptive act or practice for a motor vehicle manufacturer,
81	81	52distributor or franchisor representative to require, attempt to require, coerce or attempt to coerce
82	82	53a motor vehicle dealer to sell, offer to sell or sell exclusively an extended service contract,
83	83	54extended maintenance plan or similar products, including, but not limited to, guaranteed
84	84	55automobile protection or guaranteed asset protection products, offered, endorsed or sponsored by
85	85	56the motor vehicle manufacturer, distributor or franchisor representative by any of the following 4 of 5
86	86	57means: (i) a statement made by the motor vehicle manufacturer, distributor or franchisor
87	87	58representative that failure to sell, offer to sell or sell exclusively an extended service contract,
88	88	59extended maintenance plan or similar products will substantially and adversely impact the dealer;
89	89	60(ii) a provision in a franchise agreement that the dealer sell or sell exclusively an extended
90	90	61service contract, extended maintenance plan or similar product offered, endorsed or sponsored by
91	91	62the motor vehicle manufacturer, distributor or franchisor representative; (iii) measuring the
92	92	63dealer’s performance under the franchise based on the sale of extended service contracts,
93	93	64extended maintenance plans or similar products offered, endorsed or sponsored by the motor
94	94	65vehicle manufacturer, distributor or franchisor representative; or (iv) requiring the dealer to
95	95	66exclusively promote the sale of extended service contracts, extended maintenance plans or
96	96	67similar products offered, endorsed or sponsored by the motor vehicle manufacturer, distributor or
97	97	68franchisor representative.
98	98	69 Nothing in this subsection shall prohibit a motor vehicle manufacturer, distributor or
99	99	70franchisor representative from providing incentives to a dealer that encourages a voluntary
100	100	71decision to sell or sell exclusively an extended service contract, extended maintenance plan or
101	101	72similar product, including, but not limited to, guaranteed automobile protection or guaranteed
102	102	73asset protection products offered, endorsed or sponsored by the manufacturer, distributor or
103	103	74franchisor.
104	104	75 SECTION 5. Said chapter 175 is hereby amended by striking out section 149V, as so
105	105	76appearing, and inserting in place thereof the following section:-
106	106	77 Section 149V. (a) The following shall be exempt from sections 149M to 149W, inclusive:
107	107	78(i) warranties, service contracts or maintenance agreements provided by public utilities that are 5 of 5
108	108	79regulated by the department of telecommunications and cable or the Federal Communications
109	109	80Commission, or by an affiliate of such entity, covering customer wiring, transmission devices
110	110	81serviced by such public utility or warranting services provided by such public utility or its
111	111	82affiliate; (ii) mechanical breakdown insurance policies offered by insurers otherwise licensed and
112	112	83regulated pursuant to the laws and regulations of the commonwealth; (iii) warranties, service
113	113	84contracts or other agreements regarding automobiles under which a licensed motor vehicle dealer
114	114	85is obligated to perform; (iv) warranties offered by builders as part of a conveyance of real estate;
115	115	86(v) warranties on a product made by the manufacturer, importer or seller of the product; and (vi)
116	116	87maintenance agreements.
117	117	88 (b) Motor vehicle manufacturer’s service contracts on the motor vehicle manufacturer’s
118	118	89products shall comply with sections 149M to 149W, inclusive, as applicable to be determined by
119	119	90the commissioner of insurance; provided, however, that motor vehicle manufacturer’s service
120	120	91contracts on the motor vehicle manufacturer’s products shall be exempt from licensure
121	121	92requirements under subsection (d) of section 149N.