CONFERENCE COMMITTEE REPORT NO. 20

                            Honolulu, Hawaii
                                            , 1999

                            RE:   S.B. No. 236
                                  S.D. 1
                                  H.D. 1
                                  C.D. 1




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

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

Sir:

     Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by the House of Representatives
in S.B. No. 236, S.D. 1, H.D. 1, entitled:  

     "A BILL FOR AN ACT RELATING TO UNFAIR AND DECEPTIVE
     PRACTICES," 

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to make it an unfair and
deceptive practice to promote a contest of chance where some or
all of the prizes may not be awarded, or to fail to award all
prizes offered, without providing a potential contestant with
specific and conspicuous written disclosure.  This measure also
makes it unlawful to offer a prize of real property in a contest
of chance. 

     Upon careful consideration, your Committee on Conference has
amended this measure to allow the offering of a prize of real
property in a contest of chance provided that the offeror files a
minimum $10,000 bond with the Director of Commerce and Consumer
Affairs, that:


 
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     (1)  Names the director as obligee and a surety company
          authorized in the State to do business as surety;

     (2)  Is continuous in form and conditioned upon an award of
          the real property to an eligible participant; and 

     (3)  Runs to the State for the benefit of any person who
          failed to receive the real property due to the failure
          of the offeror to award the real property. 

     The measure also establishes requirements and conditions for
the cancellation of a bond by a surety.  Additionally, your
Committee on Conference has made technical, stylistic changes to
the measure.

     Your Committee on Conference is in accord with the intent
and purpose of S.B. No. 236, S.D. 1, H.D. 1, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as S.B. No. 236, S.D. 1, H.D. 1, C.D. 1.

                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
            HOUSE                             SENATE
                                   
                                   
                                   
______________________________     ______________________________
RON MENOR, Co-Chair                BRIAN KANNO, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
ERIC G. HAMAKAWA, Co-Chair         BRIAN T. TANIGUCHI, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
MARILYN B. LEE, Member             AVERY B. CHUMBLEY, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
CYNTHIA HENRY THIELEN, Member      LES IHARA, JR., Member
                                   
                                   
                                   
                                   ______________________________
                                   WHITNEY T. ANDERSON, Member

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