STAND. COM. REP. NO. 73

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 765
                                     




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

Sir:

     Your Committee on Transportation, to which was referred H.B.
No. 765 entitled: 

     "A BILL FOR AN ACT RELATING TO MOTOR VEHICLE RENTAL
     INDUSTRY,"

begs leave to report as follows:

     The purpose of this bill, as received by your Committee, is
to permit rent-a-car lessors to visibly pass on their concession
and access fees to consumers of rental vehicles.

     Your Committee finds that lessors consider their concession
and access fees when quoting rates for rental vehicles, but are
not able to visibly show these costs.  Your Committee finds that
consumers compare costs for rentals in other jurisdictions and
nationally advertised rates, and conclude that they are being
overcharged in Hawaii, since lessors in many jurisdictions make
extra charges visible.

     This bill proposes to permit motor vehicle lessors to
visibly pass on the concession and access fees and charges paid
to public airport as airport charges.

     Testimony in favor of this bill was received from Catrala-
Hawaii's Legislative Affairs Committee.  Testimony in opposition
to the bill was received from the Department of Commerce and
Consumer Affairs.  The Department of Transportation requested
that the bill be deferred pending national guidelines.


 
 
                                 STAND. COM. REP. NO. 73
                                 Page 2

 
     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.
765 and recommends that it pass Second Reading 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