STAND. COM. REP. NO. 849

                                   Honolulu, Hawaii
                                                     , 1999

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




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

Sir:

     Your Committee on Judiciary, to which was referred S.B.
No. 236, S.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to make it an unfair and
deceptive practice to hold a sweepstakes in which prizes are not
awarded unless written disclosure is made to each offeree of the
drawing date and the possibility of no prizes being awarded.

     Furthermore, this bill makes it an unfair and deceptive
practice to offer real property as the sweepstakes prize.

     Your Committee finds that this measure is necessary to deter
unscrupulous individuals from unfairly exploiting the natural
assumptions of consumers that if there is a sweepstakes for a
prize, someone will actually win it, and win it in a reasonable
period of time.  Your Committee further finds that the State's
very high cost of living and sluggish economy makes the offer of
real property as a sweepstakes prize especially cruel to the
underprivileged, who are understandably most likely to
participate in such a sweepstakes.


 
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                                   STAND. COM. REP. NO. 849
                                   Page 2


     As affirmed by the record of votes of the members of your
Committee on Judiciary that is attached to this report, your
Committee is in accord with the intent and purpose of S.B.
No. 236, S.D. 1, and recommends that it pass Third Reading.

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



                                   ______________________________
                                   AVERY B. CHUMBLEY, Co-Chair



                                   ______________________________
                                   MATTHEW M. MATSUNAGA, Co-Chair

 
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