STAND. COM. REP. NO. 513-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2479
                                     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. 2479 entitled: 

     "A BILL FOR AN ACT RELATING TO MOTOR VEHICLE EXPRESS
     WARRANTY ENFORCEMENT (LEMON LAW),"

begs leave to report as follows:

     The purpose of this measure is to include the finance and
interest charges paid by a consumer in the consumer's Lemon Law
refund.  

     Your Committee finds that consumers pay significant amounts
of finance charges as part of a vehicle purchase.  This bill
would:

     (1)  Help restore consumers to the financial position they
          were in prior to the purchase by more effectively
          unwinding the purchase transaction; and

     (2)  Reduce consumer dissatisfaction and increase consumer
          confidence in the arbitration process.

     Testimony was received from the Department of Commerce and
Consumer Affairs (DCCA) in strong support of this measure.

     Your Committee has adopted the recommendations of the DCCA
and has amended section 4 of the bill by changing the effective
date of the bill from October 1, 2000 to "upon its approval."

 
 
 
                                 STAND. COM. REP. NO. 513-00
                                 Page 2

 
Technical, nonsubstantive amendments were also made for purposes
of style and 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. 2479, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
2479, 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