STAND. COM. REP. NO. 1602-24

Honolulu, Hawaii

, 2024

RE: S.B. No. 2747

S.D. 2

H.D. 2

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 S.B. No. 2747, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AIRCRAFT,"

begs leave to report as follows:

The purpose of this measure is to require the Department of Transportation to adopt rules requiring applicants for a tour aircraft operations permit to maintain minimum aircraft liability insurance coverage.

Your Committee received testimony in support of this measure from the Hawaii Association for Justice and Blue Hawaiian.

Your Committee finds that tour aircraft operations are businesses that offer aircraft for hire by passengers for the purposes of aerial observation of landmarks and other manmade or natural sites in the State and transporting passengers for tourist-related activities. Your Committee further finds that there have been a number of recent incidents involving helicopter crashes that resulted in catastrophic injury, loss of life, and substantial property damage, including a 2019 crash in a Kailua neighborhood on Oahu. This measure will ensure that these operations have the coverage necessary to properly compensate passengers and Hawaii residents in the event of a catastrophic incident.

Your Committee has amended this measure by specifying that the minimum aircraft liability insurance coverage be $20,000,000 per person per incident that covers, at a minimum, bodily injury and death and loss and damage to property.

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 S.B. No. 2747, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2747, S.D. 2, H.D. 2.

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

____________________________

MARK M. NAKASHIMA, Chair