STAND. COM. REP. NO. 1265-24

Honolulu, Hawaii

, 2024

RE: S.B. No. 2342

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred S.B. No. 2342, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

The purpose of this measure is to amend:

(1) The penalties for repeated traffic violations, repeated reckless driving violations, and repeated violations of excessive speeding;

(2) The fines for driving without motor vehicle liability insurance; and

(3) Motor vehicle insurance liability coverage minimums.

Your Committee received testimony in support of this measure from the Department of Transportation; Department of the Prosecuting Attorney of the City and County of Honolulu; Hawaii Association for Justice; and five individuals. Your Committee received testimony in opposition to this measure from the Office of the Public Defender; American Property Insurance Association; The Hertz Corporation; State Farm Mutual Automobile Insurance Company; and two individuals. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs; Department of the Attorney General; Turo; Hawaii Insurers Council; and one individual.

Your Committee finds that traffic fatalities and injuries in Hawaii have increased, with a record high of one hundred seventeen traffic fatalities and five hundred seventy serious traffic-related injuries in 2022. Your Committee further finds that required motor vehicle insurance minimum policy limits have not been raised in twenty-five years, since the enactment of Act 275, Session Laws of Hawaii 1998. As a result, and accounting for inflation, Hawaii's consumers have less than half of the automobile insurance protection they had when the law was first enacted. This measure is intended to increase public safety for drivers and pedestrians by ensuring an enhanced level of protection for consumers by raising minimum motor vehicle liability coverage requirements and increasing the penalties for various violations to create a greater deterrent to dangerous driving behaviors.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 3000, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

Your Committee respectfully requests your Committee on Consumer Protection & Commerce, should it choose to deliberate on this measure, to determine the appropriate effective date for the section requiring the Insurance Commissioner to issue memos soliciting rate filings from motor vehicle insurers to reflect the amendments to the motor vehicle insurance liability coverage minimums made by this measure.

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2342, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2342, S.D. 2, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Transportation,

____________________________

CHRIS TODD, Chair