CONFERENCE COMMITTEE REPORT NO. 30

                            Honolulu, Hawaii
                                            , 1999

                            RE:   S.B. No. 947
                                  S.D. 2
                                  H.D. 1
                                  C.D. 1




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

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

Sir:

     Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by the House of Representatives
in S.B. No. 947, S.D. 2, H.D. 1, entitled:  

     "A BILL FOR AN ACT RELATING TO TELEMARKETING FRAUD," 

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 measure is to prevent telemarketing
fraud in this State by adding a new chapter to the Hawaii Revised
Statutes entitled the "Telemarketing Fraud Prevention Act", that:

     (1)  Specifies the acts which constitute unfair or deceptive
          practices;

     (2)  Specifies the acts which constitute abusive
          telemarketing practices;

     (3)  Requires telephone solicitors to maintain records of
          telemarketing activities for a period of two years from

 
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          the date of the telephone call and to make these
          records available to governmental agencies for law
          enforcement purposes;

     (4)  Provides exemptions from the recordkeeping requirements
          of the chapter; and

     (5)  Provides that violations of this chapter constitute
          unfair methods of competition or unfair and deceptive
          acts or practices within the meaning of section 480-2,
          Hawaii Revised Statutes (HRS).

     After full and careful consideration, your Committee on
Conference has amended this measure by:

     (1)  Deleting the definition of "premium";

     (2)  Amending the definition of "seller" to include persons
          who arrange for a telephone solicitor to solicit funds
          or contributions;

     (3)  Amending the definition of "telemarketing" to include
          prize promotions and investment opportunities;

     (4)  Clarifying the acts which constitute:

          (a)  Unfair or deceptive practices; and

          (b)  Abusive telemarketing practices;

     (5)  Clarifying the recordkeeping requirements for all
          telemarketing activities initiated in this State; 

     (6)  Exempting certain entities from the chapter rather than
          from the recordkeeping requirements of the chapter;

     (7)  Providing exemptions for:

          (a)  Nondepository financial services loan companies
               licensed or authorized to conduct business in the
               State by the commissioner of financial
               institutions or an affiliate of a financial
               institution as defined in chapter 412, HRS; and 

          (b)  The sale of goods or services by land line or
               wireless video service providers; and

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

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     Your Committee on Conference is in accord with the intent
and purpose of S.B. No. 947, S.D. 2, H.D. 1, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as S.B. No. 947, S.D. 2, H.D. 1, C.D. 1.

                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
            HOUSE                             SENATE
                                   
                                   
                                   
______________________________     ______________________________
RON MENOR, Co-Chair                BRIAN T. TANIGUCHI, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
ERIC G. HAMAKAWA, Co-Chair         BRIAN KANNO, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
MARILYN B. LEE, Member             MATTHEW M. MATSUNAGA, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
CYNTHIA HENRY THIELEN, Member      LES IHARA, JR., Member
                                   
                                   
                                   
                                   ______________________________
                                   DAVID MATSUURA, Member
                                   
                                   
                                   
                                   ______________________________
                                   WHITNEY T. ANDERSON, Member

 
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