STAND. COM. REP. NO. 161

Honolulu, Hawaii

RE:    S.B. No. 827

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Transportation and International Affairs, to which was referred S.B. No. 827 entitled:

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLE EXPRESS WARRANTY ENFORCEMENT,"

begs leave to report as follows:

     The purpose of this measure is to cover motorcycles under the State's motor vehicle express warranty enforcement law (lemon law).

     Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs (DCCA).  Testimony in opposition was received from the Hawaii Motorcycle Dealers Association and Motorcycle Industry Council.

     According to testimony of the DCCA, motorcycles are covered in lemon laws in approximately eight states.  The approximate annual number of lemon law cases involving motorcycles in these states range from three in Connecticut to thirteen in Texas.  In Hawaii, there have been only about three to four inquiries within the last several years involving lemon law coverage of motorcycles.

     However, your Committee believes that in Hawaii there could well be a significant number of lemon law type complaints involving motorcycles that have gone unreported because motorcycles are not covered.  Your Committee recalls the oral testimony of an individual who stated that he had to bring his new motorcycle back to the dealership at least four times over a several month period for repair of a defect that would have been covered by the lemon law.

     Testimony of the DCCA indicated that motorcycles can be easily accommodated into the lemon law without much more administrative burden.

     As affirmed by the record of votes of the members of your Committee on Transportation and International Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 827 and recommends that it pass Second Reading and be referred to the Committee on Commerce, Consumer Protection, and Affordable Housing.

Respectfully submitted on behalf of the members of the Committee on Transportation and International Affairs,

____________________________

J. KALANI ENGLISH, Chair