STAND. COM. REP. NO. 1781

Honolulu, Hawaii

RE: H.B. No. 760

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred H.B. No. 760, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO CONSUMER PROTECTION,"

begs leave to report as follows:

The purpose and intent of this measure is to require a full-service franchise restaurant to disclose its non-participation in national advertising campaigns that offer a promotion or a discount with a sign at the entrance or storefront of the restaurant.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs and one individual. Your Committee received testimony in opposition to this measure from the Hawai‘i Restaurant Association.

Your Committee finds that customers of full-service restaurants who patronize the establishment because of a national advertising campaign that promotes a discount on food or beverage may be misled if the offer is not available in Hawaii. Although national advertisements generally disclose geographic restrictions in television commercials, the disclosure often appears only for a short period of time and in very small print. This measure will benefit Hawaii consumers by requiring a restaurant to inform patrons that a particular promotion does not apply prior to the patrons entering the restaurant, which will help alleviate unnecessary misunderstandings between restaurants and patrons.

Your Committee has amended this measure by inserting an effective date of July 1, 2019.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 760, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 760, H.D. 2, S.D. 1, and be placed on the calendar for Third Reading.

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

________________________________

ROSALYN H. BAKER, Chair