STAND. COM. REP. NO. 741

Honolulu, Hawaii

, 2005

RE: H.B. No. 47

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 47 entitled:

"A BILL FOR AN ACT RELATING TO MOTORCYCLE AND MOTOR SCOOTER INSURANCE,"

begs leave to report as follows:

The purpose of this bill is to encourage motorcyclists and motor scooter operators to obtain insurance and complete the motorcycle education course by amending the law pertaining to motorcycle and motor scooter liability insurance coverage. Specifically, this bill will:

(1) Allow persons with a valid motorcycle or motor scooter learner's permit to obtain coverage for their vehicle provided that they have also registered to take a Department of Transportation-approved motorcycle education course; and

(2) Allow the insurance coverage to be cancelled if the insured fails to provide a copy of the learner's permit and confirmation of enrollment in or successful completion of an approved motorcycle education course.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs and GEICO. Testimony in opposition of this measure was received from Consumer Lawyers of Hawaii, Hawaii Motorcycle Dealers Association, Leeward Community College, and a concerned individual.

Your Committee finds that this measure will contribute to safety on the roadways and ensure that motorcycle and motor scooter operators receive liability insurance protection. Concern was expressed, however, that the measure does not specifically require registration in a motorcycle education course prior to issuance of coverage. Concern was also expressed that the measure does not specify a time frame for canceling insurance coverage.

In light of these concerns, your Committee has amended this bill by inserting language clarifying that:

(1) Policies for motorcycle or motor scooter insurance shall be issued to persons with learners permits who have registered to take or have successfully completed an approved motorcycle education course; and

(2) Policies for motorcycle or motor scooter insurance shall be cancelled within 45 days following policy inception for non-compliance and shall include a notice of cancellation to the policy holder at least 20 days prior to the policy's cancellation date.

Your Committee has further amended this measure by providing a defective date of July 1, 2099, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 47, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 47, H.D. 1, and be placed on the calendar for Third Reading.

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

 

____________________________

KENNETH HIRAKI, Chair