Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Consumer Protection and Commerce and Judiciary, to which was referred S.B. No. 1201, S.D. 2, entitled:

beg leave to report as follows:

The purpose of this bill is to restore regulatory licensing of motor vehicle manufacturers and motor vehicle distributors by articulating in the statutes, prohibited practices related to franchising, and granting both distributors and dealers the right to recover certain specified damages for violation of those prohibitions.

Testimony in support of this bill was submitted by the Hawaii Automobile Dealers Association. The Department of Commerce and Consumer Affairs (DCCA) supported the intent of the measure, and offered amendments. Alliance of Automobile Manufacturers commented on the measure.

Your Committees believe that restoration of manufacturer and distributor licensing will provide protection for dealers in their dealings with manufacturers and distributors, and for distributors in their dealings with manufacturers. Your Committees find that passage of this bill will bring Hawaii into the overwhelming majority of states that maintain motor vehicle franchise protection laws for their locally-owned businesses and will protect the investments of local motor vehicle dealers in their franchises, while shielding customers from inflated new motor vehicle costs.

DCCA and affected parties have been working together through the session and have reached an agreement supported by all parties regarding regulation under this bill. Your Committees are in support of their agreement, and have amended this measure by:

As affirmed by the records of votes of the members of your Committees on Consumer Protection and Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1201, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1201, S.D. 2, H.D. 1, and be placed on the calendar for Third Reading.