STAND. COM. REP. NO.  1547

Honolulu, Hawaii

                , 2013

RE:   S.B. No. 470

      S.D. 1

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 470, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CREDIT CARDS,"

begs leave to report as follows:

The purpose of this measure is to prohibit retailers from passing certain credit card surcharges on to customers.

The Hawaii Bankers Association testified in support of this measure.  Lockridge, Grindal, and Nauen, P.L.L.P. testified in opposition to this measure.  Retail Merchants of Hawaii and the Hawaii Food Industry Association provided comments on this measure.

     Your Committee finds that the testimony received on this measure was notably conflicting in terms of whether the proposed surcharge prohibition is needed and what its actual impact on consumers and businesses would be.  However, since it raises important consumer and other issues, your Committee has amended this measure by changing its effective date to January 1, 2112, to encourage further discussion.

     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 S.B. No. 470, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 470, S.D. 1, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ANGUS L.K. McKELVEY, Chair