STAND. COM. REP. NO. 2314

Honolulu, Hawaii

RE: S.B. No. 2120

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Public Safety, Intergovernmental, and Military Affairs, to which was referred S.B. No. 2120 entitled:

"A BILL FOR AN ACT RELATING TO GIFT CERTIFICATES,"

begs leave to report as follows:

The purpose and intent of this measure is to exclude certain county-issued cards and certificates from the definition of "gift certificate" or "certificate" for purposes of regulating gift certificates in the State.

Your Committee received testimony in support of this measure from the Department of Transportation Services of the City and County of Honolulu.

Your Committee finds that the City and County of Honolulu uses smart cards for public transit passengers to pay for fares. Using smart cards as a means of payment for public transportation eliminates the need for the public to purchase daily and monthly transit passes. Existing law subjects all county-issued cards, including smart cards, to regulations relating to gift certificates in the State. This measure will clarify that county-issued cards are not subject to regulation under the State's unfair and deceptive practices act.

As affirmed by the record of votes of the members of your Committee on Public Safety, Intergovernmental, and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2120 and recommends that it pass Second Reading and be referred to your Committee on Commerce, Consumer Protection, and Health.

Respectfully submitted on behalf of the members of the Committee on Public Safety, Intergovernmental, and Military Affairs,

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CLARENCE K. NISHIHARA, Chair