STAND. COM. REP. NO. 2502
RE: S.B. No. 2384
Honorable Ronald D. Kouchi
President of the Senate
Thirtieth State Legislature
Regular Session of 2020
State of Hawaii
Your Committee on Transportation, to which was referred S.B. No. 2384 entitled:
"A BILL FOR AN ACT RELATING TO MOTOR VEHICLES,"
begs leave to report as follows:
The purpose and intent of this measure is to prevent price gouging by towing companies by requiring certain tow operators to provide a written disclosure of certain information and an itemization of charges prior to attaching a disabled vehicle to the tow truck in certain circumstances, such as after a motor vehicle accident.
Your Committee received testimony in support of this measure from Department of Commerce and Consumer Affairs; National Insurance Crime Bureau; GEICO Insurance Agency, Inc.; Kobayashi Sugita & Goda, LLP; and American Property Casualty Insurance Association. Your Committee received comments on this measure from Hawaii Insurers Council; and AAA Hawai‘i, LLC.
Your Committee finds that there are a growing number of unscrupulous towing companies who overcharge for their services. Your Committee further finds that these overcharges are paid by either a vehicle owner or their insurance company in order for the vehicle owner to retrieve his or her vehicle. This measure will help prevent price gouging by requiring tow companies to provide the vehicle owner an itemized disclosure to which the owner must agree before towing their vehicle. Your Committee additionally finds that certain automobile clubs, such as AAA own their own fleet of tow trucks.
Accordingly, your Committee has amended this measure by amending the measure to also exempt tow trucks owned by automobile clubs.
As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2384, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2384, S.D. 1, and be referred to your Committees on Commerce, Consumer Protection, and Health and Judiciary.
Respectfully submitted on behalf of the members of the Committee on Transportation,
LORRAINE R. INOUYE, Chair