Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Transportation, Military Affairs and Government Operations and Tourism and Intergovernmental Affairs, to which was referred S.B. No. 593 entitled:

beg leave to report as follows:

The purpose of this measure is to repeal the ban on commissions from the sale of collision damage waivers in the rental car industry, and instead prohibit only defined "direct" commissions.

The Department of Commerce and Consumer Affairs testified in opposition to this measure.

Your Committees agree that direct commissions for sales of collision damage waivers are the kind that lead to "hard sell" tactics and coercion of patrons of the car rental industry. Your Committees believe that direct commissions should continue to be prohibited, as they are under this measure.

Therefore, your Committees support this measure, which deletes the prohibition on indirect commissions for the sale of collision damage waivers.

Your Committees amended this measure to delete the provisions requiring car rental companies to report to the Department of Commerce and Consumer Affairs regarding sales of collision damage waivers during the preceding year.

As affirmed by the records of votes of the members of your Committees on Transportation, Military Affairs and Government Operations and Tourism and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 593, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 593, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection and Housing.