STAND. COM. REP. NO.  99

Honolulu, Hawaii

                , 2009

RE:   H.B. No. 1518

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Transportation, to which was referred H.B. No. 1518 entitled:

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLES,"

begs leave to report as follows:

     The purpose of this bill is to allow tow companies to conduct business in a manner similar to other businesses by permitting tow companies to assess applicable general excise taxes (GET) and  county surcharges to fees already charged to the owner of a motor vehicle left unattended on property without the authorization of the owner or occupant of the property.

     The Hawaii State Towing Association and Waialae Chevron and Tow Service testified in support of this bill.  The Office of Consumer Protection of the Department of Commerce and Consumer Affairs testified in opposition to this measure.

     Currently, rates for towing vehicles under certain conditions are regulated by statute and companies engaged in this practice are not allowed to pass on the GET they are charged for operating their business.  You Committee finds that in all fairness, towing companies should be treated like other businesses and allowed to pass on the GET to its customers.

     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 H.B. No. 1518 and recommends that it pass Second Reading and be referred to the Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Transportation,

____________________________

JOSEPH M. SOUKI, Chair