CONFERENCE COMMITTEE REP. NO. 165

Honolulu, Hawaii

                 , 2017

RE:    H.B. No. 735

       H.D. 2

       S.D. 2

       C.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sirs:

     Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 735, H.D. 2, S.D. 2, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose and intent of this measure is to:

     (1)  Amend the prorated amount of vehicle license and registration fees, weight taxes, inspection fees, highway beautification fees, and use taxes that rental car companies may pass on to lessees; and

     (2)  Require the motor vehicle rental industry to report to the Legislature prior to the Regular Session of 2019 on the average fee charged to each customer on each motor vehicle rental and the average time in service of each motor vehicle rental.

     Your Committee on Conference has amended this measure by:

     (1)  Establishing the prorated amount of the fees that rental car companies may pass on to lessees at 1/292^nd of the fees;

     (2)  Requiring rental car companies to submit an annual audit conducted by a third party certified public accountant to the Office of Consumer Protection of the Department of Commerce and Consumer Affairs beginning on March 1, 2019;

     (3)  Changing its effective date to July 1, 2017; and

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

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 735, H.D. 2, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 735, H.D. 2, S.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ LORRAINE R. INOUYE Chair	____________________________ HENRY J.C. AQUINO Co-Chair
____________________________ ROSALYN H. BAKER Co-Chair	____________________________ ROY M. TAKUMI Co-Chair
____________________________ J. KALANI ENGLISH Co-Chair	____________________________ SEAN QUINLAN Co-Chair