STAND. COM. REP. NO.  94

Honolulu, Hawaii

                , 2009

RE:   H.B. No. 270

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 270 entitled:

"A BILL FOR AN ACT RELATING TO THE MOTOR VEHICLE INDUSTRY LICENSING ACT,"

begs leave to report as follows:

     The purpose of this bill is to clarify the requirements for selling or advertising used motor vehicles by allowing these activities by dealers possessing reasonable indicia of ownership or right of possession of the legal ownership certificate of the vehicle.

     The Hawaii Automobile Dealers Association testified in support of this bill.  Hawaii Insurers Council opposed this measure.  The Motor Vehicle Industry Licensing Board and State Farm Insurance Companies provided comments.

     There are concerns that allowing used car dealers to sell vehicles with documentation less than the title documents could encourage fraud and auto thefts.  Your Committee is moving this bill forward for further consideration of these issues.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 270 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 Consumer Protection & Commerce,

____________________________

ROBERT N. HERKES, Chair