STAND. COM. REP. NO. 675-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1511

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1511 entitled:

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

begs leave to report as follows:

The purpose of this measure is to prohibit certain entities from distributing unsolicited mail regarding the extension of a vehicle or home warranty unless certain disclosures are met.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs; Office of Consumer Protection of the Department of Commerce and Consumer Affairs; and Mortgage Bankers Association of Hawaii. Your Committee received testimony in opposition to this measure from the American Property Casualty Insurance Association and Service Contract Industry Council. Your Committee received comments on this measure from the Alliance for Automotive Innovation and Hawaii Automobile Dealers Association.

Your Committee finds that many consumers receive letters purporting to originate from a motor vehicle manufacturer or dealer or a mortgage loan originator or loan servicer. The letter will state that the consumer's motor vehicle or home warranty needs to be extended and pressures the consumer into completing the transaction as soon as possible. While these letters may appear real, these letters are known attempts to fraudulently take a consumer's money. This measure imposes a disclosure requirement that will assist consumers in distinguishing between authentic communications from their motor vehicle manufacturer or dealer or mortgage loan originator or loan servicer from other third parties.

Your Committee has amended this measure by:

(1) Broadening its applicability to any entity that distributes unsolicited mail or electronic mail to a consumer that employs high pressure tactics or is reasonably likely to result in the consumer believing that the sender is affiliated with another entity that the sender is not actually affiliated with and the entity is asking the recipient to pay for goods, services, or forms of legal authorization;

(2) Clarifying that this measure applies to situations where a consumer is asked to send money to purchase a service contract;

(3) Clarifying that this measure also applies to situations where an entity represents that a federal, state, or county government, or its agencies, employees, or officers, is asking the consumer to send money to renew a license or registration;

(4) Specifying that this measure should not be construed to prohibit an entity from distributing legitimate communications about goods, services, or forms of legal authorization as long as the communication does not employ high pressure tactics or is not reasonably likely to result in the consumer believing that the sender is affiliated with another entity to which the sender is not actually affiliated;

(5) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1511, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1511, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

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

____________________________

SCOT Z. MATAYOSHI, Chair