Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

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. 2375 entitled:

beg leave to report as follows:

The purpose of this measure is to require county police to issue a citation for the lack of a motor vehicle insurance policy upon discovering that a motor vehicle is not insured.

Testimony in support of this measure was received from the State Insurance Commissioner and one individual. Testimony in opposition was received from the Honolulu Police Department.

The intent of this measure is to reduce the number of uninsured motor vehicles. One means to do this is stricter enforcement of the motor vehicle insurance law requiring all motor vehicles to be insured. The most practicable means of enforcement is for the police to cite the driver of an uninsured motor vehicle. This usually occurs in the context of a traffic stop. This measure would require the police to issue a citation on the spot for lack of insurance and to immediately take possession of the certificate of registration. Thereupon, the police would take summary possession of the vehicle and impound it. The vehicle would be returned upon the owner showing proof of insurance to the court.

Your Committees find that this measure is necessary to address the uninsured motorists problem. Another alternative is a cooperative program between insurance companies and county police to provide police with electronic notification. However, that proposal presents computerization problems, among other issues. On the other hand, this measure is the reasonable and practicable alternative. Under current law, if a motorist is cited by police for a motor vehicle insurance violation, that motorist is free to proceed to drive the vehicle from the scene in derogation of the intent of the law. The motorist then can plead a case before the court at a later date. This measure takes away the vehicle from the motorist at the time the police stop occurs on the road. Your Committees find that this measure is a more effective deterrent and achieves the goal of getting uninsured vehicles off the road.

Your Committees have amended this 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. 2375, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2375, S.D. 1, and be referred to the Committee on Ways and Means.