Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1055, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to implement a method by which law enforcement officers may readily determine whether motor vehicles involved in traffic accidents have insurance coverage.

Specifically, this bill requires the Motor Vehicle and Licensing Division of the City and County of Honolulu to establish, maintain, and operate a statewide electronic insurance database, which is to be interactive with the Division's motor vehicle registration database. The bill also requires, beginning on January 1, 2004, all motor vehicle insurers to establish and maintain an information system that will electronically transmit the vehicle identification number of an insured vehicle, upon issuance of a motor vehicle insurance policy and no later than twenty-four hours after the effective date of the policy, to the statewide database. The bill further appropriates the nominal sum of $1 for each of fiscal years 2003-2004 and 2004-2005 to the City and County of Honolulu to establish, maintain, and operate the statewide database.

Your Committee finds that this measure will alleviate the problem of verifying the insurance coverage of motorists who are involved in traffic accidents and identifying those who are uninsured.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1055, S.D. 1, and recommends that it pass Third Reading.