STAND. COM. REP. NO. 1394

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1401
                                        H.D. 2
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 1401, H.D. 2, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO MOTOR VEHICLE TOWING,"

begs leave to report as follows:

     The purpose of this measure is to prevent theft of motor
vehicles by unidentified tow trucks and protect an owner from
damages caused by towing companies while the motor vehicle is
being towed.  

     More specifically, this measure provides that:

     (1)  Towing companies must insure their tow vehicles as
          required under the motor vehicle insurance law and the
          insurance must cover all damages that may occur to a
          towed vehicle while being towed and stored;

     (2)  A towing company may not collect charges for a tow if
          it failed to comply with the insurance requirements;

     (3)  If a towing company does not comply with the insurance
          and signage requirements, any person, including the
          registered owner, lienholder, or insurer of the
          vehicle, may sue the company for any resulting damages
          and, if that person prevails, the sum of not less than
          $1,000 or threefold damages plus reasonable attorneys
          fees and costs shall be awarded; and

 
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                                   STAND. COM. REP. NO. 1394
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     (4)  The current provision allowing maximum towing fees and
          credit card and automatic teller machine (ATM)
          accommodations for payment of towing fees be made
          permanent by repealing the drop-dead provision.

     Your Committee finds that theft of motor vehicles by
unidentified tow trucks is a problem in this State.  This measure
will require tow trucks to identify themselves.  In addition, the
insurance coverage required by this measure will protect an owner
from damages caused by towing companies while the motor vehicle
is being towed.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 1401, H.D. 2, S.D. 1, and recommends that it
pass Third Reading.

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



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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