CONFERENCE COMMITTEE REP. NO. 86-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2143

H.D. 2

S.D. 1

C.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 2143, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO BUSINESS REGULATION,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this bill is to protect consumers and update the gift certificate law by:

(1) Clarifying the existing law concerning the minimum duration of a gift certificate, by adding an explicit prohibition against dormancy and other service fees;

(2) Permitting the expiration date of an electronic card with a banked dollar value to be published on the sales receipt;

(3) Creating an exemption from the gift certificate law for gift certificates issued without the consumer giving anything of value to the issuer, such as in the case of promotional and charitable gift certificates; and

(4) Updating the definition of "gift certificate" to reflect technological changes.

In addition to a single technical, nonsubstantive amendment, your Committee on Conference amended the effective date of this bill. The Act takes effect on July 1, 2005. It should be noted, however, that the amendment concerning dormancy and other service fees is a clarification of the current law. Issuers of gift certificates should not interpret the Act as permitting the imposition of such charges prior to July 1, 2005.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 2143, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 2143, H.D. 2, S.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________

RON MENOR, Chair

____________________________

KENNETH T. HIRAKI, Chair