Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Transportation, Military Affairs and Government Operations and Education, to which was referred H.B. No. 1730, H.D. 1, entitled:

beg leave to report as follows:

The purpose of this measure is to raise the drivers education fund underwriters fee from $2 to $3.50 a year on each motor vehicle, and to allocate the additional amount to the Department of Transportation and the Department of Education.

Your Committees received testimony in support of the measure from the Department of Transportation, the Department of Education, the Driver Education Coordinator of Roosevelt High School, the Hawaii Association of Safety-Traffic Educators, Keiki Injury Prevention Coalition, and Mothers Against Drunk Driving. Your Committees received testimony in opposition to the measure from the Hawaii Insurers Council. The Department of Commerce and Consumer Affairs submitted comments.

Your Committees find that demands for the Department of Education's driver education program have greatly increased since January 1, 2001, the effective date of Act 175, Session Laws of Hawaii 1999.

The Department of Education needs additional resources to be able to increase the number of students served by the driver education program. The additional funds will be used to certify and pay additional driver education teachers, and purchase driver education automobiles and classroom instructional materials. Therefore, your Committees support increasing the underwriters fee.

Your Committees amended this measure by replacing its contents with the contents of S.B. No. 2325, S.D. 1, a similar Senate measure. The Senate measure eliminates the purpose section, increases the underwriters fee from $2 to $3, and allocates the increase entirely to the Department of Education.

As affirmed by the records of votes of the members of your Committees on Transportation, Military Affairs and Government Operations and Education that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1730, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1730, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.