[BF=1>
a                                                     HB1912 SD1

                                   STAND. COM. REP. NO. 3216

                                   Honolulu, Hawaii
                                                     , 2000

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




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 1912, H.D. 1, 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 define "damage to rental
motor vehicle" or "damage to vehicle" to clarify what may be
recovered in the event a rental vehicle is damaged.

     Testimony in favor of this measure was submitted by Catrala-
Hawaii, Dollar Rent A Car Systems, Inc., Enterprise Rent A Car,
and The Hertz Corporation.  The Department of Commerce and
Consumer Affairs submitted testimony in opposition.

     Your Committee finds that under certain interpretations of
Hawaii law, a U-drive company can only recover from a wrongful
party the actual costs of repairing the damaged vehicle or the
value of the vehicle in cases where it is a total loss.  This
measure seeks to compensate the company for other associated
costs and losses.

     Your Committee has heard the issues raised by the motor
vehicle rental industry, but is concerned that the proposed
 
 
 
                                   STAND. COM. REP. NO. 3216
                                   Page 2


factors to determine recovery would unfairly affect consumers.
Your Committee has amended this measure to:

     (1)  Delete appraisal fees, administrative fees, and eighty
          per cent of the loss of use of the vehicle;

     (2)  Establish 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; and

     (3)  Change the effective date to July 1, 2010.

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

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



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair