STAND. COM. REP. NO.  704

Honolulu, Hawaii

                , 2017

RE:   H.B. No. 735

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 735, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to assist rental car companies in fully collecting from customers mandated government assessed vehicle fees.  This measure also amends the formula upon which those fees are assessed.  

The Department of Transportation, The Chamber of Commerce Hawaii, Avis Budget Group, Enterprise Holdings, Hertz Global, American Car Rental Association, and Hawaii Lodging & Tourism Association testified in support of this measure. The Office of Consumer Protection of the Department of Commerce and Consumer Affairs testified in opposition to this measure.

     Your Committee has amended this measure by:

     (1)  Inserting a repeal date of June 30, 2018;

     (2)  Requiring the Department of Business, Economic Development, and Tourism to submit to the Legislature a preliminary and final report on the impacts of the collection of government assessed vehicle fees including the impact on tourism, local business, rental car companies, and residents;

     (3)  Changing its effective date to July 1, 2112, to facilitate further discussion; and

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

     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 H.B. No. 735, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 735, H.D. 2.

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

____________________________

ANGUS L.K. McKELVEY, Chair