Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 173 entitled:

begs leave to report as follows:

The purpose of this measure is to amend the law relating to consumer protection.

Your Committee has amended this measure by replacing its content with language that addresses the liabilities of a health club upon the sale of the health club.

Specifically, this measure provides that upon the sale of a health club, the purchaser is required to assume all the liabilities of the health club, including those arising under health club contracts entered into by the original owner of the health club.

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 S.B. No. 173, as amended herein, and recommends that it pass First Reading again in the form attached hereto as S.B. No. 173, S.D. 1, and be recommitted to the Committee on Commerce, Consumer Protection, and Housing, for further consideration.