Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 681 entitled:

begs leave to report as follows:

The purpose of this measure is to allow towing companies to charge an extra recovery charge under certain circumstances.

Testimony in support of this measure was received from Catrala-Hawaii and Dollar Rent A Car Systems, Inc. Testimony in opposition was received from the Hawaii Insurers Council. Comments were received from the Department of Commerce and Consumer Affairs.

Your Committee finds that towing companies should be allowed to charge an additional "recovery charge" if it takes longer than fifteen minutes to hookup a vehicle. This measure sets that charge at $25 for each fifteen minute increment or fraction thereof in excess of the first fifteen minutes, excluding travel time and wait time. The recovery charge is required to be fair and reasonable and subject to approval by the owner or insurer. Towing companies must document the time it took to hook up the vehicle.

Your Committee believes that the vast majority of tows should take less than fifteen minutes to hookup. Some vehicles, particularly trucks or difficult to tow vehicles, may take a longer time. Your Committee cautions the towing companies that this measure should not be used as a reward for working slower.

Testimony on this measure by the rental car companies indicated a problem with their vehicles being towed without their knowledge until days or weeks later. Your Committee agrees that the towing companies should take reasonable and prompt steps to immediately notify the owner of the towed vehicle that the vehicle has been towed.

Your Committee has amended this measure by requiring that towing companies notify the owner within twenty-four hours after the tow by telephone or facsimile of the tow, use all available means to ascertain the telephone number of the owner, and document the attempts to notify.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 681, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 681, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection and Housing.