STAND. COM. REP. NO.  1010

 

Honolulu, Hawaii

                , 2011

 

RE:   S.B. No. 35

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Transportation, to which was referred S.B. No. 35 entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this bill is to amend the Motor Vehicle Industry Licensing Act to:

 

     (1)  Clarify that the same procedures, protections, rights, and remedies provided to auto dealers under Act 164, Session Laws of Hawaii 2010 (Act 164), also apply to distributors that are not manufacturers; and

 

     (2)  Delete a definition of "good faith" that is no longer necessary, as it is not used in the paragraph in which it was intended to apply.

 

     The Department of Commerce and Consumer Affairs (DCCA), Hawaii Automobile Dealers Association, Alliance of Automobile Manufacturers, and Motor Vehicle Industry Licensing Board testified in support of this bill.

 

     Act 164, established certain rights and duties among motor vehicle dealers and manufacturers to address a difficult economic climate and major changes in the automotive industry.  While Act 164 was intended to apply to distributors as well, those provisions were mistakenly omitted from the final Act.  According to DCCA, this measure reconciles existing statutory language with part II of Chapter 437, Hawaii Revised Statutes, which was added by Act 164, and applies those provisions to distributors, as originally intended.

 

     As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 35 and recommends that it pass Second Reading and be referred to the Committee on Consumer Protection & Commerce.

 

 

Respectfully submitted on behalf of the members of the Committee on Transportation,

 

 

 

 

____________________________

JOSEPH M. SOUKI, Chair