STAND. COM. REP. NO.  702-10

Honolulu, Hawaii

                , 2010

RE:   S.B. No. 2607

      S.D. 2

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Tourism, Culture, & International Affairs, to which was referred S.B. No. 2607, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO ACTIVITY DESKS,"

begs leave to report as follows:

     The purpose of this bill is to protect consumers and providers of activities and attractions that are sold by activity desks by:

     (1)  Requiring an activity desk to maintain and make available for inspection, books, records, and other documents required by law;

     (2)  Providing that the activity desk registration number must be included on advertising and promotional material;

     (3)  Requiring an activity desk to obtain full payment for activities prior to or at the time reservations are booked or placed with the activity provider or within three business days thereafter, with certain exceptions;

     (4)  Requiring an activity desk to hold sums paid to an activity desk for activities furnished by an activity provider, in trust for the person making the payment and the activity provider; and

     (5)  Increasing the maximum bond or letter of credit requirement for activity desks from $100,000 to $250,000.

     A concerned individual supported this bill.  The Department of Commerce and Consumer Affairs' (DCCA) Regulated Industries Complaints Office and DCCA's Professional and Vocational Licensing Division provided comments.

     Your Committee has amended this bill by:

     (1)  Reinstating provisions that allow DCCA to permit the use of other types of activity desk trust account funds or accounts, upon meeting certain requirements;

     (2)  Changing the effective date to January 1, 2112; and

     (3)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Tourism, Culture, & International Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2607, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2607, S.D. 2, H.D. 1, and be referred to the Committees on Consumer Protection & Commerce and Judiciary.

Respectfully submitted on behalf of the members of the Committee on Tourism, Culture, & International Affairs,

____________________________

JOEY MANAHAN, Chair