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 Commerce, Consumer Protection and Housing, to which was referred S.B. No. 2325 entitled:

beg leave to report as follows:

The purpose of this measure is to raise the drivers education fund underwriters fee from $2 to $4 a year on each motor vehicle.

Your Committees received testimony in support of the measure from the Department of Transportation, Department of Education, and Hawaii Association of Safety-Traffic Educators. Your Committees received testimony in opposition to the measure from the Hawaii Insurers Council. Your Committees received comments on the measure from the State Insurance Commissioner.

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, 1999 Session Laws of Hawaii. The department 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.

Your Committees have amended the measure by:

As affirmed by the records of votes of the members of your Committees on Transportation, Military Affairs and Government Operations and Commerce, Consumer Protection and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2325, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2325, S.D. 1, and be referred to the Committee on Ways and Means.