STAND. COM. REP. NO.769
Honolulu, Hawaii
, 2001
RE: S.B. No. 1073
S.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred S.B. No. 1073, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO TRAVEL SERVICES,"
begs leave to report as follows:
The purpose of this measure is to increase consumer protection for persons dealing with travel agencies or charter tour operators.
Specifically, this bill:
(1) Authorizes the Director of Commerce and Consumer Affairs to deny registration of travel agencies or charter tour operators under certain specified conditions;
(2) Provides record keeping requirements for client trust accounts;
(3) Specifies prohibited acts detrimental to consumers;
(4) Authorizes the Director to revoke, suspend, or refuse to renew registration for violations;
(5) Establishes that violations relating to client trust accounts establishes fraud and provides penalties; and
(6) Authorizes the Director to obtain an injunction or court order to protect consumers.
Your Committee finds that existing laws and rules have not provided adequate protection for consumers who have made prepaid travel arrangements through travel agencies and charter tour services. In recent years, a number of residents have found themselves with no airline tickets or reservations, despite advance payment to unethical travel agencies. Some of these consumers are unable to make other arrangements, and most do not get their money back.
Your Committee believes that this bill balances government regulation of private business with protecting the interest of the public. Responsible travel agencies and charter tour operators will not be subjected to unreasonably burdensome requirements, and consumers will be better protected from unethical travel service providers.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1073, S.D. 1, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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____________________________ BRIAN T. TANIGUCHI, Chair |
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