STAND. COM. REP. NO. 675

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 976
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Transportation, to which was referred H.B.
No. 976 entitled: 

     "A BILL FOR AN ACT RELATING TO MOTORCYCLE INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to reduce the number of
uninsured motorcycle and motor scooter riders on Hawaii's roads
by allowing riders with a valid learner's permit who enroll in a
certified Motorcycle Safety Foundation education course to
qualify for insurance.

     Your Committee finds that under the current law, motorcycle
and motor scooter riders possessing a valid learner's permit
cannot obtain liability coverage unless they have taken and
passed a motorcycle education course that has been approved by
the Department of Transportation.  As some courses on military
installations do not have approval from the Department of
Transportation, even though they are certified by the Motorcycle
Safety Foundation (MSF), people who enroll in and pass these
course still are not eligible to obtain insurance by law.

     Your Committee further finds that the Department of Defense
(DOD) requires that all military and DOD personnel who wish to
operate a motorcycle or motor scooter on military installations
must have taken an MSF-approved course, regardless of whether
they hold a license or a permit.  State-approved courses and
courses offered on military installations are similar except for
the fact that State courses provide motorcycles to be used

 
 
                                 STAND. COM. REP. NO. 675
                                 Page 2

 
throughout the course, while the military courses are authorized
to allow the students to use their own motorcycles.

     This bill proposes to require persons who possess a valid
learner's permit and are seeking motorcycle liability coverage to
have enrolled in and/or subsequently passed an education course
approved by the Department of Transportation or the installation
commander of any branch of the U.S. military that meets the
Motorcycle Safety Foundation standards.

     Testimonies in support of this bill were received from
Street Bikers United, the Honolulu Chapter of the Harley Owners
Group, Carr's Insurance Agency, and numerous private citizens.
Testimony from the Department of Transportation and the Hawaii
Insurers Council supports the intent of this bill.  Testimonies
in opposition to this bill were received from the Department of
Commerce and Consumer Affairs, the University of Hawaii, and two
private citizens.

     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 H.B. No.
976 and recommends that it pass Second Reading and be referred to
the Committee on Consumer Protection and Commerce.

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



                                   ______________________________
                                   KENNETH T. HIRAKI, Chair