Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred H.B. No. 2244 entitled:

begs leave to report as follows:

The purpose of this bill is to allow motor vehicle lessors to visibly pass on to the lessee any third party concession fees where the third party is an entity other than the Department of Transportation.

Cendant Car Rental Group, Inc., and The Hertz Corporation testified in support of this bill. The Department of Commerce and Consumer Affairs testified in opposition to this measure.

Currently, motor vehicle lessors are able to recover concession fees (payments by a vehicle rental company to a third party for the right to do business at a particular location) at Hawaii airports. Your Committee finds that other locations where rental car companies do business are also subject to concession fees and that rental car companies should be allowed to recover these concession fees as long as the rental car company itemizes the concession fee charged to the lessee on their bill.

Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2244 and recommends that it pass Second Reading and be referred to the Committee on Consumer Protection & Commerce.