STAND. COM. REP. 615

Honolulu, Hawaii

, 2003

RE: H.B. No. 140

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 140 entitled:

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

begs leave to report as follows:

The purpose of this measure is to clarify how diminution in value of a damaged vehicle may be determined under the Motor Vehicle Rental Industry Act.

Testimony in support of this bill and suggesting an amendment was received from Catrala-Hawaii, the Hertz Corporation, Word of Mouth Rent a Car, Avis Rent a Car and Dollar Rent a Car. Testimony in opposition of this bill was received from the Department of Commerce and Consumer Affairs, State Farm Insurance Companies and the Hawaii Insurers Council.

Your Committee recognizes that diminution in value of a vehicle that is not repaired and not declared a total loss is difficult to quantify and extremely subjective. Although this measure attempts to clarify how the diminution in value of a damaged rental vehicle may be determined, your Committee recognizes that an auction may not be the best way to determine the value of the vehicle after an incident. In addition, this bill does not define the term "blue book," making it unclear how the value of the vehicle prior to the incident will be determined.

 

Your Committee has amended this bill by changing its effective date to July 1, 2050, to facilitate further discussion on this matter.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 140, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 140, H.D. 1, and be placed on the calendar for Third Reading.

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

 

____________________________

KENNETH T. HIRAKI, Chair