STAND. COM. REP. NO. 793

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 665
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 665, S.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to consider motorcycle
education courses approved by an armed services branch
installation commander that meets the Motorcycle Safety
Foundation requirements as a qualifying motorcycle education
course for the purpose of obtaining motorcycle liability
insurance coverage.

     The Department of Transportation, the State Director of
Street Bikers United, Carr's Insurance Agency, the Hawaii
Motorcycle Dealers Association, and a concerned citizen presented
testimony in support of the measure.  The Treasurer of Street
Bikers United and the Secretary of the Honolulu Chapter of Harley
Owners Group, although not present, submitted written testimony
in support of the measure.

     The Insurance Commissioner presented testimony in opposition
to the measure.  The Chancellor of Community Colleges of the
University of Hawaii and a concerned citizen, although not
present, submitted written testimony in opposition to the
measure.

     Your Committee finds that motorcycle safety courses save
lives and reduce insurance costs.  Every opportunity should be

 
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                                   STAND. COM. REP. NO. 793
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taken to encourage and facilitate motorcycle driver enrollment in
these courses.

     Your Committee further finds that under the current law,
only those motorcycle drivers who have enrolled in a motorcycle
safety course through the University of Hawaii are allowed to
obtain required liability insurance.  At the same time, those
enrolled in courses offered through the United States Armed
Forces are not allowed to obtain temporary insurance, even though
both courses have identical curriculum.  This measure would allow
greater opportunity for motorcycle drivers to enroll in courses
in compliance with state law and obtain the necessary insurance.

     Your Committee has amended the measure to:

     (1)  Delete the amendment, which would allow persons to
          obtain liability coverage by enrolling in a motorcycle
          education course;

     (2)  Allow persons to obtain a temporary insurance binder,
          if they have enrolled in a motorcycle education course
          which is approved by the installation commander of any
          branch of the armed services, and meets the Motorcycle
          Safety Foundation standards; and

     (3)  Make technical and nonsubstantive amendments.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 665, S.D. 1, as amended herein, and
recommends that it pass Third Reading in the form attached hereto
as S.B. No. 665, S.D. 2.

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



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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