Bill Text: HI HB2017 | 2012 | Regular Session | Introduced

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Bill Title: Motor Vehicle Rental Industry; Fees

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2012-02-08 - (H) The committee(s) on TRN recommend(s) that the measure be deferred. [HB2017 Detail]

Download: Hawaii-2012-HB2017-Introduced.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	2017
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO the MOTOR VEHICLE rental industry.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  Section 437D-3, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Vehicle license cost recovery fee" means a charge that may be separately stated and charged in a rental motor vehicle contract to recover costs incurred by the lessor to license, title, register, plate, and inspect rental motor vehicles."

     SECTION 2.  Section 437D-8.4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Notwithstanding any law to the contrary, a lessor may visibly pass on to a lessee:

     (1)  The general excise tax attributable to the transaction;

     (2)  [The vehicle license and registration fee and weight taxes, prorated at 1/365th of the annual vehicle license and registration fee and weight taxes actually paid on the particular vehicle being rented for each full or partial twenty-four-hour rental day that the vehicle is rented; provided the total of all vehicle license and registration fees charged to all lessees shall not exceed the annual vehicle license and registration fee actually paid for the particular vehicle rented;] A vehicle license cost recovery fee, which shall be calculated by the lessor as the average daily cost per vehicle of the total annual motor vehicle titling, registration, plating, and inspection costs of all vehicles from the preceding year;

     (3)  The rental motor vehicle surcharge tax as provided in section 251-2 attributable to the transaction;

     (4)  The county surcharge on state tax under section 46-16.8; provided that the lessor itemizes the tax for the lessee; and

     (5)  The rents or fees paid to the department of transportation under concession contracts negotiated pursuant to chapter 102, service permits granted pursuant to title 19, Hawaii Administrative Rules, or rental motor vehicle customer facility charges established pursuant to section 261-7; provided that:

         (A)  The rents or fees are limited to amounts that can be attributed to the proceeds of the particular transaction;

         (B)  The rents or fees shall not exceed the lessor's net payments to the department of transportation made under concession contract or service permit;

         (C)  The lessor submits to the department of transportation and the department of commerce and consumer affairs a statement, verified by a certified public accountant as correct, that reports the amounts of the rents or fees paid to the department of transportation pursuant to the applicable concession contract or service permit:

              (i)  For all airport locations; and

             (ii)  For each airport location;

         (D)  The lessor submits to the department of transportation and the department of commerce and consumer affairs a statement, verified by a certified public accountant as correct, that reports the amounts charged to lessees:

              (i)  For all airport locations;

             (ii)  For each airport location; and

            (iii)  For each lessee;

         (E)  The lessor includes in these reports the methodology used to determine the amount of fees charged to each lessee; and

         (F)  The lessor submits the above information to the department of transportation and the department of commerce and consumer affairs within three months of the end of the preceding annual accounting period or contract year as determined by the applicable concession agreement or service permit.

          The respective departments, in their sole discretion, may extend the time to submit the statement required in this subsection.  If the director determines that an examination of the lessor's information is inappropriate under this subsection and the lessor fails to correct the matter within ninety days, the director may conduct an examination and charge a lessor an examination fee based upon the cost per hour per examiner for evaluating, investigating, and verifying compliance with this subsection, as well as additional amounts for travel, per diem, mileage, and other reasonable expenses incurred in connection with the examination, which shall relate solely to the requirements of this subsection, and which shall be billed by the departments as soon as feasible after the close of the examination.  The cost per hour shall be $40 or as may be established by rules adopted by the director.  The lessor shall pay the amounts billed within thirty days following the billing.  All moneys collected by the director shall be credited to the compliance resolution fund."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Motor Vehicle Rental Industry; Fees

 

Description:

Provides that lessors may pass on vehicle title, plate, registration, and inspection costs to lessees.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.