Relating To Motor Vehicle Rental Industry.
If enacted, SB335 will amend Section 437D-3 of the Hawaii Revised Statutes, effectively removing the provisions that allowed for the inclusion of vehicle license recovery fees in rental agreements. This removal seeks to align the rental practices with pre-2017 standards, mitigating the adverse effects that these fees had on consumers who rented vehicles. The change is expected to not only benefit lessees by preventing unjust pricing but may also support the tourism sector by promoting a more transparent rental market, which is crucial for attracting visitors to the islands.
Senate Bill 335 focuses on the regulation of the motor vehicle rental industry in Hawaii. It aims to repeal vehicle license recovery fees established by Act 137 of 2017, which allowed rental companies to pass certain fees onto lessees. The bill will restore practices that permit lessors to visibly pass on only recurring costs such as taxes and registration fees, which protects lessees from overpayments created under the previous law. One of the main objectives is to ensure transparent pricing in the motor vehicle rental sector, especially considering Hawaii’s significant tourism industry.
The primary contention surrounding this bill involves the balance between business interests and consumer protection. Advocates for the bill, including various consumer advocacy groups, argue that it addresses unfair financial burdens placed on consumers by rental companies who previously took advantage of excessive fees. However, rental companies may contend that repealing these fees will limit their ability to cover the costs associated with operating in Hawaii’s unique market. There may also be concerns about potential increases in base rental rates as companies adjust their pricing structures in response to the repeal.