Bill > SB29

This bill addresses the motor vehicle rental industry by repealing the definition of "vehicle license recovery fees" and modifying how rental car companies can pass certain fees and taxes to customers. Specifically, the bill limits the fees that can be passed on to lessees to only vehicle license and registration fees and weight taxes, reverting to a pre-2017 policy. The bill changes the prorated calculation of these fees from 1/292nd to 1/365th of the annual fees, which means customers will be charged only the exact amount of fees directly attributable to their rental period. The legislation also eliminates the requirement for rental car companies to submit annual audits to the Office of Consumer Protection. The bill's rationale is that the previous law (Act 137 from 2017) created an unfair method of calculating passed-on costs and allowed rental car companies to advertise low base rates while subtly increasing the actual per-day rental rate through excessive taxes and fees, potentially harming Hawaii's tourism industry.

Transportation and Infrastructure

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=29&year=2026