STAND. COM. REP. NO.967
Honolulu, Hawaii
, 2001
RE: S.B. No. 1073
S.D. 1
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 S.B. No. 1073, S.D. 1, 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 for consumers against the risk of loss due to mishandling or misappropriation of client funds by prepaid travel agency and charter tour services. This measure amends chapter 468L, Hawaii Revised Statutes, by adding six new sections to Hawaii's travel agency law. Specifically, the bill strengthens existing law by:
(1) Authorizing the Director of Commerce and Consumer Affairs (Director) to deny registration of travel agencies or charter tour operators that fail to comply with the law, and under other specified circumstances;
(2) Delineating travel agency and charter tour client trust account recordkeeping requirements;
(3) Prohibiting operation of a travel agency or charter tour company in violation of chapter requirements, as well as other acts detrimental to consumers;
(4) Authorizing the Director to revoke, suspend, or refuse to renew the registration of violators;
(5) Establishing that violations relating to client trust accounts constitute fraud, and providing fines and other administrative penalties; and
(6) Authorizing the Director to obtain an injunction or court order to protect consumers.
Your Committees received testimony in support of this measure from the Department of Commerce and Consumer Affairs.
Your Committees find that this measure is needed. Despite existing law, there have been recent incidents where consumers have found themselves without airline tickets or other expected accommodations. In most cases, consumers were unable to obtain refunds from their travel agency. In some cases, losses resulted from the insolvency of the travel agency. In other cases, losses were related to misappropriation or misuse of client trust fund accounts.
Your Committees believe that this bill balances government regulation of private business and protects the interests of consumers, without unduly burdening responsible travel agencies and charter tour operators.
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. 1073, S.D. 1, and recommend that it pass Second Reading and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committees on Consumer Protection and Commerce and Judiciary and Hawaiian Affairs,
|
____________________________ ERIC G. HAMAKAWA, Chair |
____________________________ KENNETH T. HIRAKI, Chair |