STAND. COM. REP. NO. 2736

Honolulu, Hawaii

RE:    H.B. No. 1944

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committees on Public Safety and Military Affairs and Commerce and Consumer Protection, to which was referred H.B. No. 1944 entitled:

"A BILL FOR AN ACT RELATING TO HEALTH CLUBS,"

beg leave to report as follows:

     The purpose of this measure is to allow military personnel deployed outside the State on federal active duty to cancel or suspend health club membership at any time during the contract term under certain conditions.

     Your Committees received testimony in support of this measure from one private entity, one business association, and one individual.  Written testimony presented to the Committees may be reviewed on the Legislature's website.

     Your Committees find that military personnel who by reason of the deployment on active duty are unable to use health club facilities and services, should be entitled to cancel or suspend the health club contract.

     Your Committees further find that military personnel enter into agreements with health clubs in good faith and have no control over deployment orders.  Moreover, while the federal Servicemembers Civil Relief Act provides benefits to military personnel who are deployed on active duty in the context of rental agreements, credit card interest rates, income tax payment, and other terms, it is unclear whether its provisions would also allow military personnel to cancel or suspend a health club contract.  This measure provides needed clarification and also provides for a partial refund of consideration paid by military personnel under the contract.

     Your Committees have amended this measure by replacing its contents with a substantively similar measure, S.B. No. 2137, S.D. 1, which:

     (1)  Deletes the provision that allows the health club to retain a portion of the contract price plus a reimbursement for expenses;

     (2)  Adds a provision to require a pro rata refund to the member; and

     (3)  Clarifies that proof of deployment is required to cancel or suspend the contract.

     As affirmed by the records of votes of the members of your Committees on Public Safety and Military Affairs and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1944, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1944, S.D. 1, and be referred to the Committee on Judiciary and Government Operations.

Respectfully submitted on behalf of the members of the Committees on Public Safety and Military Affairs and Commerce and Consumer Protection,

____________________________ ROSALYN H. BAKER, Chair

____________________________ WILL ESPERO, Chair