STAND. COM. REP. NO. 2976

Honolulu, Hawaii

RE: S.B. No. 2384

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committees on Commerce, Consumer Protection, and Health and Judiciary, to which was referred S.B. No. 2384, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLES,"

beg leave to report as follows:

The purpose and intent of this measure is to require certain tow operators to provide to a disabled vehicle's driver a written disclosure of certain information and an itemization of charges prior to attaching a disabled vehicle to the tow truck under certain circumstances.

Your Committees received testimony in support of this measure from the Department of Commerce and Consumer Affairs and GEICO. Your Committees received comments on this measure from Hawaii Insurers Council.

Your Committees find that drivers are often unaware of how costly towing fees are because towing companies are not required to disclose the actual cost of their services. Your Committees further find that some towing companies deliberately overcharge consumers for towing services, expecting either the vehicle owner or their insurance company to pay an exorbitant amount in order to retrieve the vehicle. Your Committees believe that a disclosure requirement would eliminate any misunderstanding between drivers and towing companies whenever a vehicle is towed from an accident scene. This measure will protect consumers from unknowingly being overcharged for towing services by requiring tow companies to provide an itemized disclosure that must be agreed upon by the driver and towing company prior to the towing of a vehicle.

Your Committees have amended this measure by inserting an effective date of January 20, 2050, to encourage further discussion.

As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection, and Health and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2384, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 2384, S.D. 2.

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

________________________________ KARL RHOADS, Chair

________________________________ ROSALYN H. BAKER, Chair