STAND. COM. REP. NO. 247-16
Honolulu, Hawaii
, 2016
RE: H.B. No. 2168
H.D. 1
Honorable Joseph M. Souki
Speaker, House of Representatives
Twenty-Eighth State Legislature
Regular Session of 2016
State of Hawaii
Sir:
Your Committee on Transportation, to which was referred H.B. No. 2168 entitled:
"A BILL FOR AN ACT RELATING TO MOTOR VEHICLE RENTAL INDUSTRY,"
begs leave to report as follows:
Current law permits rental car companies to recover certain mandatory government fees, for the purpose of making a vehicle road-ready, from rental car customers. However, the prorated formula is calculated over a period of 365 days, which results in a significant portion of the fees going unrecovered. This is partially because rental cars are rented significantly less than 100 percent of the time. Your Committee finds that this measure addresses this issue, while presenting transparency for consumers.
However, your Committee notes concerns that this measure may be unfair to consumers because it may create a situation in which consumers may be charged an excessive amount for fees and taxes. Your Committee on Transportation respectfully requests your Committee on Consumer Protection & Commerce to examine these consumer issues further as this bill makes its way through the legislative process.
Your Committee has amended this bill by:
(1) Requiring lessors of rental motor vehicles to provide lessees with the option of paying license plate fees and use taxes as part of any motor vehicle recovery fee charged; and
(2) Changing its effective date to July 1, 2050, to facilitate further discussion.
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. 2168, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2168, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.
Respectfully submitted on behalf of the members of the Committee on Transportation,
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____________________________ HENRY J.C. AQUINO, Chair |
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