CONFERENCE COMMITTEE REPORT NO. 35

                            Honolulu, Hawaii
                                            , 2000

                            RE:   H.B. No. 1912
                                  H.D. 1
                                  S.D. 1
                                  C.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
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. 1912, H.D. 1, S.D. 1, entitled:

    "A BILL FOR AN ACT RELATING TO THE 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 measure is to define "damage to rental
motor vehicle" or "damage to vehicle" to clarify what may be
recovered in the event a rental vehicle is damaged.  This measure
also establishes a task force under the Office of Consumer
Protection, with industry and consumer representation, to review
current law, industry concerns, and to report to the 2001
legislature.

     This bill clarifies what may be recovered in the event a
rental vehicle is damaged, to remedy problems experienced by
vehicle-rental companies in attempting to collect damages and

 
 
                            CONFERENCE COMMITTEE REPORT NO. 35
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losses.  According to Catrala-Hawaii, the problem is that bad
drivers escape paying portions of such damages and losses, which
raises operations costs of rental companies, and is reflected in
higher rental rates.  Good drivers then end up subsidizing bad
drivers by paying higher rental rates.  This bill will clarify
matters and help rental companies collect damages and losses from
the drivers that cause them.

     After careful consideration, and in keeping with your
Committee's deliberations during conference, your Committee on
Conference has amended this bill by:

     (1) Replacing sections 1 and 2 with a new section 1, that by
         making changes to section 437D-15, Hawaii Revised
         Statutes (HRS), seeks not only to clarify the scope of
         acceptable charges for damages and losses, but also to
         make over-charging for such damages and losses an unfair
         trade practice in violation of section 480-2, HRS; and

     (2) Changing the effective date to upon its approval.

     The new section also makes technical, nonsubstantive changes
to the existing provisions of section 437D-15.

     This bill reflects a compromise between the Office of
Consumer Protection and Catrala-Hawaii, which represents Hawaii's
major vehicle rental and leasing companies.

     Your Committee on Conference considered the request to also
include administrative fees and costs in the statute.  Your
Committee on Conference finds this unnecessary.  The parties to a
rental contract may agree in writing as to the damages and losses
a rental company may recover; a comprehensive statutory listing
of all damages and losses that might be recovered would be too
exhaustive and unnecessary.  Your Committee finds that chapter
437D, HRS, does not prevent the recovery of damages or losses to
a rental vehicle as agreed to by the parties to a rental
contract, subject to applicable statutes and legal principles.

     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. 1912, H.D. 1, S.D. 1, as amended herein, and
recommends that it pass Final Reading in the form attached hereto
as H.B. No. 1912, H.D. 1, S.D. 1, C.D. 1.


 
 
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                                   Respectfully submitted on
                                   behalf of the managers:

  ON THE PART OF THE SENATE          ON THE PART OF THE HOUSE
                                   
                                   
                                   
                                   
______________________________     ______________________________
BRIAN T. TANIGUCHI, Co-Chair       RON MENOR, Chair




______________________________
BRIAN KANNO, Co-Chair