Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3028 entitled:

begs leave to report as follows:

The purpose of this measure is to regulate warrantors of vehicle protection products.

Companies sell vehicle protection products to participating motor vehicle dealers, who sell them to consumers. These products are warranted to provide the customer with a remedy in case of loss or damage to a vehicle from specific causes. Your Committee finds that the residents of this State deserve to have these warranties supported by a regulatory scheme that includes the assurance of a backup financial security requirement.

Your Committee has amended this bill by giving it a defective effective date to encourage further discussion and by making technical nonsubstantive amendments.

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. 3028, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3028, S.D. 1.