STAND. COM. REP. NO. 2994

Honolulu, Hawaii

RE: S.B. No. 2239

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 2239, S.D. 1, 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:

(1) Prohibit any person from advertising, displaying, or offering a price for a transient accommodation or resort time share vacation interest, plan, or unit that does not include all taxes and fees imposed by a government entity at the time of purchase;

(2) Require a person to clearly and conspicuously display in each advertisement for a transient accommodation or resort time share vacation interest, plan, or unit a rate or price that includes all taxes and fees imposed by a government entity; and

(3) Require any taxes and fees that are displayed as a percentage of the cost on a booking transaction to also be displayed as a dollar amount at the time of purchase.

Your Committee received testimony in support of this measure from the Office of Consumer Protection of the Department of Commerce and Consumer Affairs and one individual.

Your Committee received testimony in opposition to this measure from the Chamber of Progress, TechNet, and Expedia Group.

Your Committee received comments on this measure from the Hawaiʻi Tourism Authority and ARDA Hawaii.

Your Committee finds that while government-related taxes and fees may be itemized during the purchase process, consumers have a right to make informed purchases regarding the total price to be paid before a transaction commences. Your Committee also finds that there is national support to reduce and eliminate mandatory fees that often hide the full price of a good or service and surprise fees that consumers learn about after purchase. This measure will enable consumers to make informed decisions and purchases by requiring advertisers to be transparent.

Your Committee has amended this measure by:

(1) Removing resort time share vacation interests and plans from the required pricing and advertisement disclosures;

(2) Specifying that the required pricing and advertisement disclosures apply to the rental and letting of transient accommodations;

(3) Specifying that the required disclosure of taxes and fees imposed by a government entity applies to those taxes and fees charged to a renter or guest;

(4) Amending section 1 to reflect its amended purpose; and

(5) 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 Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2239, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2239, S.D. 2.

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

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KARL RHOADS, Chair