STAND. COM. REP. NO. 292

Honolulu, Hawaii

, 2021

RE: H.B. No. 264

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 264 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION NETWORK COMPANIES,"

begs leave to report as follows:

The purpose of this measure is to make permanent the insurance requirements for transportation network companies and transportation network company drivers enacted by Act 236, Session Laws of Hawaii 2016 (Act 236).

Your Committee received testimony in support of this measure from the Hawaii Insurers Council, Uber Technologies, and American Property Casualty Insurance Association of America.

Your Committee finds that the rising popularity and proliferation of transportation network companies raised concerns about potential gaps in motor vehicle insurance coverage associated with the transportation network companies and their drivers. While other commercial passenger services, such as common carriers by motor vehicle or taxicabs, had commercial insurance that protected passengers and third parties during the course of a commercial activity, drivers of transportation network companies may not have had the proper coverage to protect passengers and third parties during the operation of the motor vehicle as a ride-share.

In response to these concerns, by the end of 2015, twenty-nine states enacted legislation to establish insurance requirements covering transportation network companies and their drivers. In 2016, Hawaii joined those states by enacting Act 236, which established insurance requirements for transportation network companies and their drivers. However, Act 236 is set to repeal on September 1, 2021.

Your Committee further finds that Act 236 is accomplishing its intended goal and should be made permanent.

Your Committee has amended this measure by changing its effective date to January 1, 2050, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 264, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 264, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

AARON LING JOHANSON, Chair