STAND. COM. REP. NO. 1134-18

Honolulu, Hawaii

, 2018

RE: H.B. No. 2727

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 2727, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONSUMER PROTECTION,"

begs leave to report as follows:

The purpose of this measure is to protect consumers from predatory video game mechanisms by:

(1) Establishing certain disclosure requirements for publishers of video games that contain a system to purchase a randomized reward or virtual item, or a consumable virtual item that can be redeemed and directly or indirectly converted to randomized rewards;

(2) Authorizing the Department of Commerce and Consumer Affairs, in consultation with the Office of Enterprise Technology Services, to audit the code of video games sold in the State and to ensure that the probability rates for consumers receiving the randomized rewards are calculated correctly and working properly; and

(3) Appropriating funds for the audit.

Hawaii Youth Services Network supported this measure. The Department of Commerce and Consumer Affairs provided comments on this measure.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2727, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair