STAND. COM. REP. NO. 2663

Honolulu, Hawaii

RE: S.B. No. 2020

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2020 entitled:

"A BILL FOR AN ACT RELATING TO DECEPTIVE TRADE PRACTICES,"

begs leave to report as follows:

The purpose and intent of this measure is to make it a deceptive practice to advertise, display, or offer a price for goods or services that does not include all mandatory fees or charges, with certain exceptions.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs' Office of Consumer Protection and American Economic Liberties Project.

Your Committee received testimony in opposition to this measure from the Hawaiʻi Restaurant Association, Chamber of Progress, and one individual.

Your Committee received comments on this measure from Charter Communications.

Your Committee finds that in the face of challenging operating environments, some businesses have resorted to including additional hidden fees and surcharges in bills. The public has expressed confusion about these additional fees and surcharges paid at establishments for services or, because ineffective notification leaves many customers feeling misinformed. This measure will require that all mandatory fees or charges, with certain exceptions, be disclosed when a person advertises, displays, or offers a price for goods or services.

Your Committee has amended this measure by:

(1) Inserting language exempting persons who provide broadband internet access service in compliance with certain federal rules from the requirement to include all mandatory fees or charges when advertising, displaying, or offering a price for goods or services;

(2) Inserting an effective date of July 1, 2040, to encourage further discussion; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2020, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2020, S.D. 1, and be referred to your Committee on Judiciary.

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

________________________________

JARRETT KEOHOKALOLE, Chair