STAND. COM. REP. NO. 473________

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1401
                                     H.D. 1

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Transportation, to which was referred H.B.
No. 1401 entitled: 


begs leave to report as follows:

     The purpose of this bill is to require towing companies to
protect the interests of consumers against losses due to damages
to their vehicles and losses of possessions therein, and to
properly identify their towing vehicles.

     Your Committee finds that damages may be incurred by
vehicles while being towed, and that possessions within the
vehicles may be lost, damaged, or stolen during storage.  Your
Committee also finds that it is difficult to determine whether a
vehicle being towed is a legitimate enterprise or the vehicle is
being stolen, when towing vehicles have no identification as to
name of company, address, and telephone number.  Your Committee
further finds that most towing companies are engaged in point to
point service, usually with the owner in the vehicle, and do not
store vehicles, making the cost of bonding an unnecessary
expense, since they already have "On Hook" liability insurance to
cover damages to vehicles while being towed.

     Testimonies in support of this bill were received from the
Hawaii State Towing Association, Waialae Chevron's Towagon
Service, and A Tow in Paradise.  The Department of Commerce and
Consumer Affairs supported the intent of this bill, but suggested
that the bonding requirement be deleted.  Testimonies in

                                 STAND. COM. REP. NO. 473________
                                 Page 2

opposition to the bill were received from several small towing
companies, including: Off Peak Towing, Precious State Towing &
Recovery, Humbug's Towing, Inc., Dean's Towing, Pron-Tow Service,
K&Y Chevron, and an independent tower all of whom objected to the
required bonding, since they do not store vehicles, minimizing
loss of possessions within vehicles being towed, since vehicle
owners accompany the tow wagons or remove their possessions
before towing.  Some of these towing companies objected to using
the addresses of their businesses for identification, since they
operate from their homes.

     Your Committee has amended this bill by deleting provisions
for insurance and bond requirements, and has limited tow wagon
identification to the towing business' name and telephone number.

     As affirmed by the record of votes of the members of your
Committee on Transportation that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1401, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 1401, H.D. 1, and
be referred to the Committee on Consumer Protection and Commerce.

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

                                   KENNETH T. HIRAKI, Chair