STAND. COM. REP. NO. 1693

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 236
                                     S.D. 1
                                     H.D. 1




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

Sir:

     Your Committees on Consumer Protection and Commerce and
Judiciary and Hawaiian Affairs, to which was referred S.B. No.
236, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO UNFAIR AND DECEPTIVE
     PRACTICES,"

beg leave to report as follows:

     The purpose of this bill is to make it an unfair and
deceptive practice to hold a prize drawing contest or sweepstakes
in which some or all of the prizes are not awarded, unless
conspicuous written disclosure has been made to each offeree that
some or all prizes may not be awarded and of the date the winners
will be determined.  This bill also makes it an unfair and
deceptive practice to offer real property as the prize in such a
contest.

     The Office of Consumer Protection (OCP) of the Department of
Commerce and Consumer Affairs submitted testimony in support of
the bill and recommended a minor, technical amendment.
Legislative Information Services of Hawaii, on behalf of Direct
Marketing Association (DMA), submitted testimony suggesting
technical amendments to clarify certain provisions.

     Your Committees find that this bill's disclosure
requirements would assist consumers to understand more fully
certain basic terms of a sweepstakes or prize drawing
solicitation, prior to the consumer's decision to participate.

 
 
                                 STAND. COM. REP. NO. 1693
                                 Page 2

 
Furthermore, the prohibition on offering real property as a prize
can protect those consumers who would otherwise be enticed
unfairly by such an inducement.

     Your Committees have amended the bill to make the technical,
nonsubstantive amendments proposed by DMA and OCP, for purposes
of clarity.

     As affirmed by the records of votes of the members of your
Committees on Consumer Protection and Commerce and Judiciary and
Hawaiian Affairs that are attached to this report, your
Committees are in accord with the intent and purpose of S.B. No.
236, S.D. 1, as amended herein, and recommend that it pass Second
Reading in the form attached hereto as S.B. No. 236, S.D. 1, H.D.
1, and be placed on the calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Consumer
                                   Protection and Commerce and
                                   Judiciary and Hawaiian
                                   Affairs,

                                   
                                   
                                   
                                   
______________________________     ______________________________
PAUL T. OSHIRO, Chair              RON MENOR, Chair