STAND. COM. REP. NO. 1331-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 3117
                                     




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

Sir:

     Your Committees on Consumer Protection and Commerce and
Judiciary and Hawaiian Affairs, to which was referred S.B. No.
3117 entitled: 

     "A BILL FOR AN ACT RELATING TO MOTOR VEHICLES,"

beg leave to report as follows:

     The purpose of this bill is to close a loophole in the law
that allows auto theft investigators to investigate potential
"chop shop" operations--auto repair businesses run by persons who
profit from the theft of stolen automobiles and the subsequent
use and sale of stolen automobile parts.  The existing law allows
investigators to inspect the records of "licensed" automobile
repair dealers for the limited purpose of establishing rightful
ownership and possession of goods that the police reasonably
believe are stolen.  The loophole under the law is that it
currently prohibits inspection of records when an automobile
repair dealer operates unlawfully, without being licensed.  This
bill would treat licensed and unlicensed automobile repair
dealers equally for purposes of the limited inspection permitted
under the law.

     Testimony was received in support of this measure by the
Honolulu Police Department.  The Hawaii Automotive Repair and
Gasoline Dealers Association opposed this measure.

     Your Committees heard a concern that this law would intrude
on the privacy of individuals by allowing police to inspect
private residences, if, for example, an individual repaired a

 
 
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vehicle for a friend.  Your Committees emphasize that this
measure applies only to the inspection of the records of a
business, and is not intended to broaden the law to authorize
inspection of records on premises that cannot reasonably be
considered the site of an ongoing business operation conducted
for profit.  Your Committees also note that this measure does not
affect any of the "search and seizure" protections afforded by
the State and Federal Constitutions, which provide independent
protections against intrusive police activities under this law.

     As affirmed by the records of votes of the members of your
Committees on Consumer Protection and Commerce and Judiciary and
Hawaiian Affairs that are attached to this report, your
Committees are in accord with the intent and purpose of S.B. No.
3117 and recommend that it pass Second Reading and be placed on
the calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Consumer
                                   Protection and Commerce and
                                   Judiciary and Hawaiian
                                   Affairs,

                                   
                                   
                                   
                                   
______________________________     ______________________________
ERIC G. HAMAKAWA, Chair            RON MENOR, Chair