STAND. COM. REP. NO. 278

Honolulu, Hawaii

RE: S.B. No. 1502

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Transportation and Culture and the Arts, to which was referred S.B. No. 1502 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

The purpose and intent of this measure is to require hourly peer-to-peer car sharing operators to insure the shared car at four times the personal injury protection benefit and basic liability coverage.

Your Committee received testimony in support of this measure from Getaround. Your Committee received testimony in opposition to this measure from the Office of Consumer Protection of the Department of Commerce and Consumer Affairs, Hawaii Insurers Council, Turo Inc., and Hawaii Association for Justice. Your Committee received comments on this measure from the Insurance Division of the Department of Commerce and Consumer Affairs.

Your Committee finds that peer-to-peer car sharing services provide another mode of transportation for residents and tourists. Act 56, Session Laws of Hawaii 2022, established provisions to require peer-to-peer car sharing programs to ensure that during each car-sharing period, a shared car is insured under a policy that provides primary insurance coverage and property damage coverage. However, as the peer-to-peer car sharing industry is a newly regulated industry in the State, this measure ensures consumers and other road users have adequate insurance protections.

Your Committee has amended this measure by:

(1) Inserting blank amounts for the minimum insurance rates required for hourly peer-to-peer car sharing operators;

(2) Authorizing the Department of Transportation to regulate peer-to-peer car sharing parking at state airports;

(3) Authorizing the counties to regulate peer-to-per car share parking on county streets; and

(4) Inserting an effective date of July 1, 2050, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Transportation and Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1502, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1502, S.D. 1, and be referred to your Committee on Commerce and Consumer Protection.

Respectfully submitted on behalf of the members of the Committee on Transportation and Culture and the Arts,

________________________________

CHRIS LEE, Chair