Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1401
                                        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 Transportation and Intergovernmental
Affairs, to which was referred H.B. No. 1401, H.D. 2, entitled: 


begs leave to report as follows:

     The purpose of this measure is to require towing companies

     (1)  Affix their name and telephone number on the doors of
          their tow vehicles; and

     (2)  Carry insurance to cover any damage or loss incurred by
          the owner of the towed vehicle due to towing.

     Testimony in support of this measure was received from the
Hawaii State Towing Association.  The Office of Consumer
Protection submitted testimony supporting the insurance provision
in this measure.

     Your Committee finds that theft of motor vehicles by
unidentified tow trucks is a problem in this State.  This measure
will require tow trucks to identify themselves.  In addition, the
insurance coverage required by this measure will protect an owner
from damages caused by towing companies while the motor vehicle
is being towed.

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                                   STAND. COM. REP. NO. 1035
                                   Page 2

     Your Committee has amended this measure by replacing the
contents with the Senate companion of this measure, S.B. No. 973,
S.D. 1.  The new language provides that:

     (1)  Towing companies must insure their tow vehicles as
          required under the motor vehicle insurance law and the
          insurance must cover all damages that may occur to a
          towed vehicle while being towed and stored;

     (2)  A tow company may not collect charges for a tow if it
          failed to comply with the insurance requirements;

     (3)  If a tow company does not comply with the insurance and
          signage requirements, any person, including the
          registered owner, lienholder, or insurer of the
          vehicle, may sue the company for any resulting damages
          and, if that person prevails, the sum of not less than
          $1,000 or threefold damages plus reasonable attorneys
          fees and costs shall be awarded; and

     (4)  The current provision allowing maximum towing fees and
          credit card and automatic teller machine (ATM)
          accommodations for payment of towing fees be made
          permanent by repealing the drop-dead provision.

     As affirmed by the record of votes of the members of your
Committee on Transportation and Intergovernmental Affairs that is
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 1401, H.D. 2, as amended herein,
and recommends that it pass Second Reading in the form attached
hereto as H.B. No. 1401, 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 Transportation
                                   and Intergovernmental Affairs,

                                   CAL KAWAMOTO, Chair

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