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. 2883 entitled:

beg leave to report as follows:

The purpose of this measure is to authorize motor vehicle rental companies to sell insurance under a limited license.

Testimony in support of this measure was submitted by the Department of Commerce and Consumer Affairs, Hertz Corporation, Avis Rent a Car System, Inc., Legislative Committee for Catrala-Hawaii, and Enterprise rent-a-car.

Your Committees find that the Hawaii Revised Statutes do not currently require rental companies to sell insurance under a limited license. Your Committees further find that time is of the essence to pass this measure due to the fact that federal laws relating to these incidental products will sunset in November of 2002. Your Committees, however, note that this measure is a work in progress and that subsequent Committees are requested to work with the industry so that particular problem areas can be resolved.

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. 2883 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.