STAND. COM. REP. NO. 1418-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2729
                                     S.D. 1
                                     H.D. 2




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

Sir:

     Your Committee on Finance, to which was referred S.B. No.
2729, S.D. 1, H.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 the State by creating a regulatory framework governing
the sale, terms, and administration of service contracts sold to
consumers.

     The Service Contract Industry Council supported this bill.
The Department of Commerce and Consumer Affairs and the Office of
Consumer Protection testified in support of the intent of the
measure.  The Insurance Commissioner and the Hawaii Automobile
Dealers' Association submitted comments on the measure.

     Your Committee has amended this bill by:

     (1)  Deleting the provision that exempts service contract
          sellers, administrators, and other persons marketing,
          selling, or offering to sell service contract from any
          state licensing requirements, except for the
          registration required of providers; and

     (2)  Making technical, nonsubstantive amendments for
          consistency and style.


 
 
                                 STAND. COM. REP. NO. 1418-00
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2729, S.D. 1, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 2729,
S.D. 1, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair