STAND. COM. REP. NO. 196________

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 751
                                     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 Tourism, to which was referred H.B. No.
751 entitled: 


begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Prohibit activity desks from receiving compensation for
          selling the services of a specific activity provider;

     (2)  Require activity desks to maintain a trust account and
          post a bond or obtain an irrevocable letter of credit
          as a condition of licensure; and

     (3)  Allow activity providers to claim restitution against
          the bond or letter of credit should the activity desk
          cease operations or claim bankruptcy.

     The Activity Owners Association of Hawaii and BOATS/HAWAII
Inc. submitted testimony in favor of the bill.  The Department of
Commerce and Consumer Affairs (DCCA) commented on the measure.

     Your Committee notes that DCCA indicated it would support
the insertion of language of a "private right of action for
injunctive relief" clause to the law as a means of giving
activity providers a form of relief on this issue.

                                 STAND. COM. REP. NO. 196________
                                 Page 2

     Upon further consideration, your Committee has amended the
bill by:

     (1)  Allowing activity providers to file suit to prohibit an
          activity desk or its agents from receiving extra
          compensation, or another activity provider from paying
          extra compensation, as a condition to marketing the
          goods or services of a specific activity provider more
          than another; and

     2)   Making technical, nonsubstantive amendments for
          purposes of style, clarity, and consistency.

     As affirmed by the record of votes of the members of your
Committee on Tourism that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
751, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 751, 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 Tourism,

                                   JERRY L. CHANG, Chair