Bill Text: HI SB2607 | 2010 | Regular Session | Amended
Bill Title: Activity Desks; Client Trust Accounts
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Passed) 2010-05-28 - (H) Act 150, on 5/28/2010 (Gov. Msg. No. 367). [SB2607 Detail]
Download: Hawaii-2010-SB2607-Amended.html
STAND. COM. REP. NO. 1140-10
Honolulu, Hawaii
, 2010
RE: S.B. No. 2607
S.D. 2
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Fifth State Legislature
Regular Session of 2010
State of Hawaii
Sir:
Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred S.B. No. 2607, S.D. 2, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO ACTIVITY DESKS,"
beg leave to report as follows:
The purpose of this bill is to protect consumers and providers of activities and attractions that are sold by activity desks by, among other things:
(1) Requiring an activity desk to maintain and make available for inspection, books and records, including copies of bank statements and wire or electronic transaction documents relating to client trust accounts for at least two years;
(2) Providing that the activity desk registration number must be included on advertising and promotional material;
(3) Requiring an activity desk to obtain full payment for activities prior to or at the time reservations are booked or placed with the activity provider or within three business days thereafter, with certain exceptions;
(4) Providing that the trust account containing consumer deposits shall also be for the benefit of the activity provider, and the activity desk shall be the trustee of the trust account; and
(5) Securing consumer deposits held by an activities desk who has not established a trust account, by increasing the maximum amount of the bond or irrevocable letter of credit required to be posted or obtained by the activities desk from $100,000 to $250,000, and maintaining the minimum amount at $50,000.
The Activities & Attractions Association of Hawaii, Aloha Nui Loa Tours, Inc., dba Hike Maui, and Maui Classic Charters, Inc. testified in support of this bill. The Department of Commerce and Consumer Affairs' (DCCA) Regulated Industries Complaints Office and DCCA's Professional and Vocational Licensing Division provided comments.
As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2607, S.D. 2, H.D. 1, and recommend that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary,
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____________________________ JON RIKI KARAMATSU, Chair |
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____________________________ ROBERT N. HERKES, Chair |
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