STAND. COM. REP. NO. 3502

Honolulu, Hawaii

RE: H.B. No. 2162

H.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committees on Transportation and Commerce, Consumer Protection, and Health, to which was referred H.B. No. 2162, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TOWING,"

beg leave to report as follows:

The purpose and intent of this measure is to protect consumers from predatory towing practices by:

(1) Clarifying the fees tow companies may charge;

(2) Clarifying the duties of a tow company when a vehicle owner arrives on the scene while the vehicle is in the process of being hooked up;

(3) Requiring tow and storage companies to accept credit cards;

(4) Subjecting any violation of the towing statute to the penalties and remedies under the State's unfair or deceptive acts or practices law; and

(5) Adding definitions for clarity.

Your Committees received testimony in support of this measure from the Department of Commerce and Consumer Affairs, Young Progressives Demanding Action, and two individuals. Your Committees received testimony in opposition to this measure from Honolulu Towing, Inc.

Your Committees find that predatory towing is a combination of various unethical practices used by some towing companies to maximize their income. These practices include using spotters to get cars towed almost as soon as they are parked; charging excessive fees for towing or storage; or making private side deals with owners of stores or parking lots to maximize towing income. Your Committees further find that any of these practices can result in unfair and excessive charges for the vehicle owner. This measure amends the current towing law to provide more protections for vehicle owners whose vehicles are being or have been towed.

As affirmed by the records of votes of the members of your Committees on Transportation and Commerce, Consumer Protection, and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2162, H.D. 2, and recommend that it pass Second Reading and be referred to your Committee on Judiciary.

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

________________________________ ROSALYN H. BAKER, Chair

________________________________ LORRAINE R. INOUYE, Chair