CONFERENCE COMMITTEE REPORT NO.184

                            Honolulu, Hawaii
                                            , 1999

                            RE:   H.B. No. 765
                                  H.D. 1
                                  S.D. 2
                                  C.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
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. 765, H.D. 1, S.D. 2, entitled:

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

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:

     (1) Increase the rental motor vehicle surcharge tax from $2
         a day to an unspecified amount for the period of January
         1, 2000, to December 31, 2001;

     (2) Exempt individuals renting a vehicle to replace a
         vehicle of the lessee that is being repaired from the
         rental motor vehicle surcharge tax for the period of
         January 1, 2000, to December 31, 2001;


 
 
                            CONFERENCE COMMITTEE REPORT NO.184
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     (3) Increase the tour vehicle surcharge tax to unspecified
         amounts;

     (4) Direct the Department of Taxation to deposit rental
         motor vehicle surcharge and tourist vehicle surcharge
         taxes to the credit of the state general fund in July 1,
         1999;

     (5) Promote understandable and nondeceptive disclosure of
         airport concession rents and service permit fees paid to
         the Department of Transportation for access to public
         airports, while requiring U-drive lessors to provide
         annual reports showing how such expenses were computed
         and stating their total amounts; and

     (6) Allow the motor vehicle rental industry to receive
         commissions calculated in part from the sale of
         collision damage waivers.

     Your Committee on Conference has amended this bill by:

     (1) Increasing the rental motor vehicle surcharge tax from
         $2 to $3 for a eight-year period;

     (2) Exempting persons renting a vehicle to replace a vehicle
         being repaired, provided that the repair order for the
         vehicle is retained by the lessor for four years for
         verification purposes;

     (3) Deleting the tour vehicle surcharge tax increase;

     (4) Deleting the provision depositing rental motor vehicle
         surcharge and tourist vehicle surcharge taxes to the
         credit of the state general fund;

     (5) Deleting the collision waiver provisions;

     (6) Designating state highway fund moneys to be deposited
         into the state general fund for fiscal biennium 1999-
         2001;

     (7) Making the effective date take effect upon approval; and

     (8) Making technical, nonsubstantive amendments for purposes
         of style and clarity.

     Your Committee on Conference is in accord with the intent
and purpose of H.B. No. 765, H.D. 1, S.D. 2, as amended herein,

 
                            CONFERENCE COMMITTEE REPORT NO.184
                            Page 3



and recommends that it pass Final Reading in the form attached
hereto as H.B. No. 765, H.D. 1, S.D. 2, C.D. 1.

                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
           SENATE                              HOUSE
                                   
                                   
                                   
______________________________     ______________________________
BRIAN T. TANIGUCHI, Co-Chair       KENNETH T. HIRAKI, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
BRIAN KANNO, Co-Chair              RON MENOR, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
CAROL FUKUNAGA, Co-Chair           DWIGHT Y. TAKAMINE, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
ANDREW LEVIN, Co-Chair             KENNY GOODENOW, Member
                                   
                                   
                                   
______________________________     ______________________________
ROBERT BUNDA, Member               NATHAN SUZUKI, Member
                                   
                                   
                                   
______________________________     ______________________________
CAL KAWAMOTO, Member               PAUL WHALEN, Member