STAND. COM. REP. NO. 1905-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 2770

S.D. 1

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 S.B. No. 2770, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH CLUBS,"

begs leave to report as follows:

The purpose of this measure is to require health clubs to maintain a surety bond, irrevocable letter of credit, or guaranty agreement secured by a certificate of deposit of at least $100,000, conditioned for payment to any member who suffers loss of money paid in advance of services received due to the cessation of operation of the health club.

The International Health, Racquet & Sportsclub Association opposed this measure. The Department of Commerce and Consumer Affairs provided comments.

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 S.B. No. 2770, S.D. 1, 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