Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Commerce, Consumer Protection and Housing and Judiciary, to which was referred S.B. No. 97 entitled:

beg leave to report as follows:

The purpose of this measure is to create a criminal offense of telemarketing fraud involving use at least in part of a telephone and involving direct or implied claims of receiving anything of value or of recovering losses from a prize promotion.

Your Committees received testimony in support of this measure from the Department of Commerce and Consumer Affairs, Executive Office on Aging, Policy Advisory Board for Elder Affairs, City and County of Honolulu Department of the Prosecuting Attorney, Honolulu Police Department, and American Association of Retired Persons. The Office of the Public Defender and Legislative Information Systems of Hawaii submitted comments.

Your Committees find that telemarketing fraud is one of the fastest growing forms of fraud in the United States. Each year, American consumers lose $40,000,000, and the elderly are a frequent target. In Hawaii, a Maui senior citizen was recently victimized and lost $40,000 in life savings.

This measure is part of a larger effort to combat this serious crime and to protect consumers from unscrupulous practices.

As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection and Housing and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 97 and recommend that it pass Third Reading.