STAND. COM. REP. NO. 985-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2729
                                     S.D. 1
                                     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 S.B. No. 2729, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO SERVICE CONTRACTS,"

begs leave to report as follows:

     The purpose of this bill is to protect service contract
holders in this State by creating a regulatory framework
governing the sale, terms, and administration of service
contracts sold to consumers.

     Your Committee believes service contract legislation can
benefit both consumers and the service contract industry.
Regulation of service contracts will protect consumers and
address consumer complaints arising from service contract
agreements.

     Testimony was received in support of this measure by the
Service Contract Industry Council.  The Department of Commerce
and Consumer Affairs supports the intent of this bill although
they feel that certain provisions need to be strengthened.
     
     Your Committee has amended this measure by changing the
effective date to July 1, 2050 to ensure further discussions.

     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

 
 
                                 STAND. COM. REP. NO. 985-00
                                 Page 2

 
purpose of S.B. No. 2729, S.D. 1, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as S.B. No. 2729, S.D. 1, H.D. 1, and be referred to the
Committee on Finance.

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



                                   ______________________________
                                   RON MENOR, Chair