STAND. COM. REP. NO.673
Honolulu, Hawaii
, 2001
RE: H.B. No. 597
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committees on Consumer Protection and Commerce and Judiciary and Hawaiian Affairs, to which was referred H.B. No. 597 entitled:
"A BILL FOR AN ACT RELATING TO TRAVEL SERVICES,"
beg leave to report as follows:
The purpose of this bill is to increase protections to consumers arranging for travel by specifying certain requirements, prohibited acts, and penalties for travel agencies.
This bill, which adds six new sections to chapter 486L, Hawaii Revised Statutes, strengthens existing law by:
(1) Specifying grounds for the denial of registration of a travel agency or charter tour operator;
(2) Providing basic standards for proper record keeping of financial transactions;
(3) Prohibiting specific acts that are detrimental to consumers;
(4) Authorizing the Director of Commerce and Consumer Affairs to revoke, suspend, or refuse to renew registrations; and
(5) Providing legal remedies for violations of chapter 468L, particularly in the event of the misuse of client trust funds.
Your Committees received testimony in support of this bill from the Department of Commerce and Consumer Affairs and the Hawaii Chapter of the American Society of Travel Agents.
Your Committees find that despite existing law, consumers are at risk of losing moneys paid to travel agencies for travel services. In some cases, the losses relate to the insolvency of the travel agencies; in other cases, the losses relate to misappropriation or misuse of the client trust fund accounts.
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 H.B. No. 597 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,
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____________________________ ERIC G. HAMAKAWA, Chair |
____________________________ KENNETH T. HIRAKI, Chair |
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