STAND. COM. REP. NO. 660-00

                                 Honolulu, Hawaii
                                                   , 2000

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




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

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 1912 entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to clarify what can be
recovered in case of damage to a rental vehicle by amending
section 437D-3, Hawaii Revised Statutes, to include a new
definition of "damage to rental motor vehicle" or "damage to
vehicle".  

     Testimony in support of this measure, with suggested
amendments, was submitted by Catrala-Hawaii.

     Testimony in opposition to this bill was submitted by the
Department of Commerce and Consumer Affairs.

     Your Committee finds that currently, rental car companies
bear much of much of the costs associated with damage to their
vehicles by renters.  The intent of this measure is to have the
"responsible party" pay for these damages and not have the burden
placed on the rental car companies who will have to pass on the
cost to other renters who did not damage the subject vehicle.  

     It is your Committee's understanding that Hawaii's
automobile policies will pay for the damages outlined in this
bill if a Hawaii insured damages a rental vehicle.

 
 
                                 STAND. COM. REP. NO. 660-00
                                 Page 2

 
     Your Committee has made the following amendments:

     (1)  Page 1, line 8, changed "book value" to "actual cash
          value";

     (2)  Page 1, line 12, included qualifying language that
          "eighty per cent of" the loss of use of a vehicle until
          it is repaired or replaced means "damage to rental
          motor vehicle" or "damage to vehicle"; 

     (3)  Page 1, line 14, included the requirement that
          administrative fees be "reasonable"; and 

     (4)  Technical nonsubstantive changes made for purposes of
          clarity.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 1912, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
1912, H.D. 1, and be placed on the calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,



                                   ______________________________
                                   RON MENOR, Chair