STAND. COM. REP. NO. 572

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 973
                                        S.D. 1




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

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 973, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO MOTOR VEHICLE TOWING,"

begs leave to report as follows:

     The purpose of this measure is to require towing businesses
to have insurance coverage for motor vehicles during towing and
storage, to properly identify their towing vehicles, and to allow
suit against a towing company in the event of violations.  The
measure also repeals the drop-dead provision of Act 138, Session
Laws of Hawaii 1998 (Act 138), which allows for credit card
payment of towing charges. 

     The Department of Commerce and Consumer Protection and the
Hawaii State Towing Association presented testimony in support of
the measure.  

     Your Committee finds that this measure protects owners of
towed vehicles by requiring tow operators to maintain insurance
to cover damages to vehicles during towing and storage.  Tow
operators who fail to comply with the insurance requirement may
not collect tow charges from the vehicle's owner and may incur
liability for damages sustained to the towed vehicle.  

     This measure will also aid law enforcement in the
investigation of vehicles stolen by tow operators by requiring
that the name and phone number of the tow operator be permanently
affixed to the door of the tow vehicle. 

 
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     Your Committee further finds that the administrative
problems that were anticipated as the result of allowing credit
card payment of towing charges have not occurred.  Therefore,
your Committee believes it appropriate to repeal the drop dead
provision of Act 138. 

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 973, S.D. 1, and recommends that it pass
Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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