STAND. COM. REP. 614

Honolulu, Hawaii

, 2003

RE: H.B. No. 139

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 139 entitled:

"A BILL FOR AN ACT RELATING TO THE MOTOR VEHICLE RENTAL INDUSTRY,"

begs leave to report as follows:

The purpose of this bill is to allow for the payment and receipt of commissions that may be related to, but do not directly correspond to the sale of collision damage waivers for rental vehicles.

Testimony in support of this bill was received from Catrala-Hawaii, the Hertz Corporation, Avis Rent a Car, Dollar Rent a Car and Word of Mouth Rent a Car. The Department of Commerce and Consumer Affairs (DCCA) offered comments.

Your Committee has determined that the motor vehicle rental industry should no longer be singled out by a law that bars any and all commissions in any way associated with the sale of collision damage waivers. Your Committee believes the legitimate interests of business and consumers may both be accommodated by a more limited law that prohibits only commissions based solely on the sale of collision damage waivers.

In addition, your Committee finds that this bill will, in combination with the disclosure law, provide consumers with ample protection against abuse in the sale of collision damage waivers.

Your Committee recognizes the concerns expressed by DCCA. It is not certain what the impact this bill will have on the existing ban on all commissions on the sale of collision damage waivers. In addition, ambiguity regarding what is meant by direct versus indirect commissions may impede meaningful enforcement.

Accordingly, your Committee has amended this bill by changing the effective date to July 1, 2050, to facilitate further discussions.

A technical, nonsubstantive amendment has also been made for purposes of clarity and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 139, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 139, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection and Commerce,

 

____________________________

KENNETH T. HIRAKI, Chair