Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred S.B. No. 345, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to require any person who sells more than three motor vehicles in a calendar year to be licensed as a dealer by the Motor Vehicle Industry Licensing Board (Board).

The Board, Hawaii Insurers Council, Hawaii Independent Auto Dealers Association, and a concerned individual testified in support of this bill.

Your Committee finds that this measure will help protect consumers by limiting the number of cars per calendar year that a private individual may sell without being a licensed dealer. This measure will aid in the prevention of illegal activity such as the reselling of stolen cars, auto fraud, and other illegal activity. Suspicious activity has been detected in Hawaii, such as the same individual listing numerous cars for sale per year, but currently, nothing can be done to follow up on such activity because there is no limit as to the number of cars an individual can sell.

Your Committee has amended this bill by increasing, from three to five, the number of cars that an individual who is not licensed is permitted to sell.

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 345, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 345, S.D. 1, H.D. 1, and be referred to the Committee on Consumer Protection and Commerce.