SB124.DOC

SECTION 1. The purpose of this Act is to require a business to provide commercial motor vehicle insurance coverage for delivery persons and drivers who are employed by the business but use the delivery person or driver's own motor vehicle to make deliveries or to transport clients for business purposes.

SECTION 2. Chapter 431, article 10C, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§431:10C- Commercial motor vehicle insurance coverage for delivery persons. (a) Every business that employs a delivery person or driver and requires the delivery person or driver to use the person's own motor vehicle to make deliveries for the business shall purchase and maintain in force a commercial motor vehicle insurance policy covering the delivery person or driver. The insurance policy shall name the delivery person or driver as an insured and shall provide coverage when the delivery person or driver makes deliveries or transports persons for the business in the course of the delivery person or driver's regular employment with the business. The commercial motor vehicle insurance policy and coverage shall comply with the requirements of this article.

(b) In lieu of a commercial motor vehicle insurance policy required by subsection (a), a business may self-insure the coverage for a delivery person or driver. The self-insurance shall comply with the requirements of this article.

(c) The commissioner shall administer and enforce this section and may adopt rules pursuant to chapter 91 to carry out the purpose of this section."

SECTION 3. Section 431:10C-103, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows:

""Business" means a person who engages in the conduct of business, whether as a sole proprietorship, partnership, corporation, or limited liability entity.

"Delivery person or driver" means an employee of a business whose employment duties require the employee to deliver food, merchandise, or other products of the business or who transport passengers without charge in motor vehicles owned or operated by the employee, where the transportation is provided in conjunction with and in furtherance of a related primary business purpose in accordance with paragraph 271-5(17). "Delivery person or driver" does not include:

(1) Persons transporting the person's own property in the person's own vehicle where the transportation is in furtherance of a primary business purpose or enterprise of that person;

(2) Persons operating as a common carrier by motor vehicle as defined in section 271-4;

(3) Persons operating as a contract carrier by motor vehicle as defined in section 271-4;

(4) Persons operating taxicabs or other motor vehicles utilized in performing a bona fide taxicab service as defined in section 269-1;

(5) Members of nonprofit agricultural cooperative associations who transport the property of the association, the property of a member of the association, or a person who is a member of the association in furtherance of a primary business purpose of the association;

(6) Persons operating motor vehicles specially constructed for the towing of disabled or wrecked vehicles but not otherwise used in the transportation of property for compensation or hire;

(7) Persons operating motor vehicles in the transportation of mail, newspapers, periodicals, magazines, messages, documents, letters, or blueprints;

(8) Persons operating funeral cars or ambulances;

(9) Persons operating motor vehicles in the transportation of garbage or refuse, including the transportation of recyclable materials to a redemption center;

(10) Persons transporting unprocessed agricultural products, including live animals, to a processing facility or slaughterhouse, or returning any containers used in such transportation;

(11) Sugar plantations transporting sugarcane, raw sugar, molasses, sugar by-products, and farming supplies for neighboring farmers pursuant to contracts administered by the United States Department of Agriculture;

(12) Persons transporting animal feeds and farming supplies to animal husbandry farmers and returning any containers used in the transportation;

(13) Persons transporting passengers in a single daily round trip that includes the person's own place of employment, in the person's own vehicle, between the passengers' respective places of abode or termini near such places and the passengers' respective places of employment, regardless of whether any consideration is exchanged between the driver and the passengers; and

(14) Persons conducting the type of county-regulated passenger carrying operation known as "jitney services." For the purpose of this section, "jitney services" means public transportation services utilizing motor vehicles that have seating accommodations for six to twenty-five passengers, operate along specific routes during defined service hours, and levy a flat fare schedule."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2009.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	124
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII