Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 139, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to allow the payment or receipt of direct commissions on the sale of collision damage waivers in motor vehicle rental transactions.

Testimony in support of this measure was submitted by Catrala-Hawaii, The Hertz Corporation, Cendant Car Rental Group, Inc., Enterprise Rent-A-Car, Dollar Rent A Car, ANC Rental Corporation, and Avis Rent A Car. The Department of Commerce and Consumer Affairs submitted comments on the measure.

Hawaii is the only state that does not allow the payment of commissions on the sale of collision damage waivers in motor vehicle rental transactions. This measure prohibits the payment of direct commissions, but allows the payment of commissions where the sale of collision damage waivers is one of many factors in determining the payment of commissions.

Your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 139, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 139, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.