Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 938 entitled:

begs leave to report as follows:

The purpose of this measure is to increase required motor vehicle liability coverage from $20,000 to $25,000 per person and from $40,000 to $100,000 per accident.

Your Committee heard testimony in support of the measure from Consumer Lawyers of Hawaii. Testimony in opposition to the measure was provided by the State Farm Insurance Companies, Hawaii Insurers Council, Cartrala-Hawaii, Enterprise Rent A Car of Hawaii, The Hertz Corporation, JN Car & Truck Rental, and Dollar Rent A Car. Comments were provided by the State Insurance Commissioner.

Your Committee finds that the State Insurance Commissioner does not yet have enough information to take a position on this measure and has requested additional time to study the cost impact of this bill. Accordingly, your Committee is moving this measure along for the purpose of continuing discussion on this issue.

Your Committee has amended the measure by making the effective date July 1, 2050.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 938, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 938, S.D. 1, and be placed on the calendar for Third Reading.