STAND. COM. REP. NO.2396

Honolulu, Hawaii

, 2002

RE: S.B. No. 2303

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 2303 entitled:

"A BILL FOR AN ACT RELATING TO INJURY TO PUBLIC UTILITY PROPERTY,"

begs leave to report as follows:

The purpose of this measure is to hold liable for treble damages any person who injures or destroys public utility property through want of proper care.

Testimony supporting this measure was received from Verizon Hawaii. Testimony opposing this measure was received from the Division of Consumer Advocacy, State Farm Insurance Companies, Hawaii Insurers Council, and Hawaii Transportation Association. Comments on this measure were submitted by the Gas Company.

Your Committee finds that the proper function of government, commerce, and other facilities relied on by Hawaii residents depends on uninterrupted operation of public utilities. On several occasions, persons or organizations carelessly and negligently engaged in construction activities near public utilities that eventually disrupt services. This measure further deters irresponsible actions that lead to injuries to public utility property.

Your Committee has amended this measure by:

(1) Deleting the language that imposes treble liability;

(2) Providing that any person who wilfully, intentionally, or recklessly injures or destroys public utility property shall be liable to the public utility for damages in the amount of two times the cost of all damages sustained;

(3) Excepting a person from the enhanced liability if the injury was caused by a motor vehicle being used primarily to transport any person or property;

(4) Providing that no insurance policy issued in the State shall cover the enhanced liability unless the insurance policy covers damages in excess of actual damages;

(5) Changing the effective date of this measure to July 1, 2050; and

(6) Making technical, nonsubstantive changes for purposes of preferred style and clarity.

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. 2303, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2303, S.D. 1, and be referred to the Committee on Judiciary.

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

____________________________

RON MENOR, Chair