STAND. COM. REP. NO. 868-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 1991

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 Consumer Protection & Commerce, to which was referred H.B. No. 1991, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLE INSURANCE,"

begs leave to report as follows:

The purpose of this measure is to establish:

(1) Primary and optional coverage requirements for U-drive motor vehicle insurance policies; and

(2) Disclosure requirements for U-drive motor vehicle insurance policies.

Your Committee received testimony in support of this measure from Hawaii Association for Justice and Turo Inc. Your Committee received testimony in opposition to this measure from Avis Budget Car Rental, LLC; Enterprise Mobility; and American Car Rental Association. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs.

Your Committee finds that there is a lack of parity in insurance requirements between the different sectors of rental vehicles. For traditional rental car companies, the required insurance coverage for rental vehicles is the coverage required for passenger cars. For peer-to-peer car sharing companies, the required insurance coverage is four times the coverage required for passenger cars. This measure would create parity between the two sectors of rental vehicles by requiring traditional rental car companies to have coverage equal to four times the coverage required for passenger cars.

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. 1991, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

MARK M. NAKASHIMA, Chair