Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1361
                                        H.D. 2
                                        S.D. 1

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Economic Development, to which was
referred H.B. No. 1361, H.D. 2, entitled: 


begs leave to report as follows:
     The purpose of this measure is to provide protection to
consumers against the risk of loss from advance charter tour
purchases from travel agencies who operate charter tours.

     Your Committee received testimony in support of this measure
from the Department of Commerce and Consumer Affairs and Boyd
Gaming Corporation.

     Your Committee finds that this measure will protect
consumers from situations like that of Jimmy's Travel, which
closed its doors, leaving more than one thousand customers
without prepaid charter tour services.  Your Committee further
finds that in addition to new financial requirements, this
measure would authorize the department to issue a citation to a
travel agency which does not comply with any of the provisions,
order the travel agency to cease operations, and fine the agency.

     Your Committee believes this measure will provide much-
needed protection for Hawaii's charter tour customers, while it
is not unduly burdensome for reputable travel agencies.  Your
Committee has amended the measure to make technical amendments.

a                                                     HB1361 SD1
                                   STAND. COM. REP. NO. 1074
                                   Page 2

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 1361, H.D. 2, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B.
No. 1361, H.D. 2, S.D. 1, and be referred to the Committee on
Commerce and Consumer Protection.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic

                                   LORRAINE R. INOUYE, Chair

a                                                     HB1361 SD1