STAND. COM. REP. NO. 2734

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2417

       H.D. 2

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam:

 

     Your Committee on Tourism, to which was referred H.B. No. 2417, H.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO ACTIVITY DESKS,"

 

begs leave to report as follows:

 

     The purpose of this measure is to clarify requirements for activity providers and activity desks, by:

 

     (1)  Establishing recordkeeping requirements for client trust accounts held by activity desks;

 

     (2)  Requiring registration numbers on advertising and promotional material and prohibiting an activity desk from failing to obtain full payment for activities later than three business days after the reservations are booked or placed, unless direct payment is arranged;

 

     (3)  Requiring an activity desk to hold sums paid to an activity desk in trust for the person making the payment and the activity provider; and

 

     (4)  Increasing the maximum bond or letter of credit requirement for activity desks from $100,000 to $250,000.

 

     Testimony in support of this measure was submitted by the Department of Commerce and Consumer Affairs, Activities & Attractions Association of Hawaii, Fair Wind Cruises, and Valley Isle Excursions, Inc.

 

     Written testimony presented to the Committee may be reviewed on the Legislature's website.

 

     Your Committee finds that this measure will assist the Regulated Industries Complaints Office in conducting a thorough investigation of possible violations in an expeditious manner and will provide guidance to registrants as to how long records must be maintained.

 

     Your Committee has replaced the contents of this measure with one previously heard and approved by your Committee, S.B. No. 2607, S.D. 1.  As amended, this measure:

 

     (1)  Deletes the authorization for the Director of Commerce and Consumer Affairs to, by rule, allow for the use of other types of funds or accounts provided that there is sufficient consumer protection;

 

     (2)  Deletes the increase for the maximum bond or letter of credit requirement for activity desks from $100,000 to $250,000;

 

     (3)  Changes the effective date from January 1, 2112, to July 1, 2010; and

 

     (4)  Makes technical amendments for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Tourism that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2417, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2417, H.D. 2, S.D. 1, and be referred to the Committee on Commerce and Consumer Protection.

 

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

 

		____________________________ CLARENCE K. NISHIHARA, Chair