Honolulu, Hawaii
                                                     , 1999

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

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


     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 1361, H.D. 2, S.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this measure is to protect consumers from
risk of financial loss caused when making advance purchases for
charter tours.

     Your Committee finds that although current law requires
travel agents to maintain a client trust account, there is no
mechanism for detecting non-compliance with this requirement.
Moreover, public concern was raised when one tour operator left
hundreds of consumers, who paid in advance for tours, with little
or no recourse after filing for bankruptcy.  This measure offers
a solution by providing greater regulatory oversight of certain
charter tour operators, which operate six or more charter tours
each year.

     Your Committee has amended this measure to:

     (1)  Replace its contents with the contents of a similar
          measure, S.B. No. 1513 S.D. 1, to specify that charter
          tour operators are prohibited from commingling trust
          account assets with other funds, and make several
          nonsubstantive amendments;

                                   STAND. COM. REP. NO. 1547
                                   Page 2

     (2)  Reduce the minimum bond or irrevocable letter of credit
          requirement from $1,000,000 to $300,000, less the
          amount of any security provided by charter tour
          operators pursuant to federal statute or regulation;

     (3)  Require semi-annual rather than quarterly reporting by
          charter tour operators; and

     (4)  Make technical, non-substantive amendments for purposes
          of clarity and style.

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

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

                                   BRIAN KANNO, Co-Chair

                                   BRIAN T. TANIGUCHI, Co-Chair