STAND. COM. REP. NO.  774

Honolulu, Hawaii

                , 2017

RE:   H.B. No. 735

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 735, H.D. 2, 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 rental car companies to fully collect from customers all of the government-assessed vehicle fees that the rental car companies pay by amending the formula used to calculate the fees that may be passed on to consumers.  This measure also directs the Department of Business, Economic Development, and Tourism to report on the economic impacts of the new fee calculation.

The Department of Transportation, The Chamber of Commerce Hawaii, American Car Rental Association, Enterprise Holdings in Hawaii, Hilton Hawaii, and Maui Hotel & Lodging Association testified in support of this measure.  The Department of Commerce and Consumer Affairs Office of Consumer Protection opposed this measure.  Hertz Global, Avis Budget Group, and Hawaii Lodging & Tourism Association submitted comments.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 735, H.D. 2, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair