STAND. COM. REP. 2965

Honolulu, Hawaii

, 2004

RE: H.B. No. 2630

H.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs, and Government Operations, to which was referred H.B. No. 2630, H.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this measure is to repeal the prohibition against payment of commissions to rental car employees based upon the sale of the fuel purchase option to a customer.

Testimony in support of this measure was received from Alamo Rent A Car, National Car Rental, Hertz Rent A Car, Cendant Car Rental Group, Catrala-Hawaii, and Dollar Thrifty Automotive Group, Inc. Comments were received from the Office of Consumer Protection.

The "fuel purchase option" is marketed by the rent-a-car industry as a convenience that provides the renter with the option to purchase a full tank of gas at the time of taking delivery of the rental vehicle at the prevailing market price of the fuel. By taking this option, the renter is not required to refuel the vehicle before returning it to the rent-a-car company and is not charged for any additional refueling.

Testimony indicated that there have been no consumer complaints about overzealous sales people trying to sell the option.

Your Committee finds that since the rent-a-car companies have been permitted to offer this option, the Office of Consumer Protection has not received any complaints in marketing it. Hawaii should be able to offer the same kind of commission that is offered on the Mainland.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs, and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2630, H.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Commerce, Consumer Protection and Housing.

Respectfully submitted on behalf of the members of the Committee on Transportation, Military Affairs, and Government Operations,

____________________________

CAL KAWAMOTO, Chair