STAND. COM. REP. NO.1217

Honolulu, Hawaii

, 2001

RE: H.B. No. 271

H.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred H.B. No. 271, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to allow indirect commissions for selling collision damage waivers (CDWs).

Your Committee received testimony in support of this measure from Catrala-Hawaii. Testimony in opposition was received from the Department of Commerce and Consumer Affairs (DCCA).

Current law prohibits all commissions on the sale of CDWs. This measure would prohibit only "direct commissions" which are calculated based directly on the sales of CDWs. Your Committee heard testimony on both sides of this issue. On the one hand, some form of a commission should be allowed because the public is better and fewer CDWs are being sold today. On the other hand, the high costs of CDWs also provide an inducement for rental car agents to pressure customers into buying them. Particularly for tourists, a hard sell approach may tarnish Hawaii's image as the Aloha State.

Your Committee passes on this measure in the interests of keeping the discussion alive, at the request of Catrala-Hawaii and the DCCA.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 271, H.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Commerce, Consumer Protection and Housing.

Respectfully submitted on behalf of the members of the Committee on Transportation, Military Affairs and Government Operations,

____________________________

CAL KAWAMOTO, Chair