SCR97 SD1.DOC

WHEREAS, a national report from the Insurance Research Council estimates that the rate of uninsured motorists in Hawaii was eleven percent in 2009; and

WHEREAS, uninsured motorists contribute to the increased cost of motor vehicle insurance for all Hawaii motorists; and

WHEREAS, one method of reducing the number of uninsured motorists is the adoption of a web services-based database program that connects a state agency directly with an insurer to provide real-time confirmation of insurance coverage; and

WHEREAS, other states, including Wyoming, Oklahoma, and Nevada, have adopted web services-based programs to verify motor vehicle insurance coverage; and

WHEREAS, Utah has a similar uninsured motorist identification program funded through a $1 per vehicle uninsured motorist identification fee; and

WHEREAS, motor vehicle registration in Hawaii is managed by the counties; and

WHEREAS, although the City and County of Honolulu has a web services-based database program, there is no statewide motor vehicle registration database; and

WHEREAS, the State and insured motorists would benefit if Hawaii had a program designed to track uninsured motorists and enforce penalties or sanctions against those motorists found in violation; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-sixth Legislature of the State of Hawaii, Regular Session of 2012, the House of Representatives concurring, that the Insurance Commissioner is requested to convene a working group to explore the creation of a web services-based database program to track uninsured motorists; and

BE IT FURTHER RESOLVED that the working group be composed of the Insurance Commissioner, the Administrator of the Motor Vehicle and Licensing Division of the City and County of Honolulu, and representatives from the Department of the Attorney General, a county police department, Property Casualty Insurers Association of America, Hawaii Insurers Council, and State Farm Insurance Companies; and

BE IT FURTHER RESOLVED that the working group is requested to establish a mechanism for funding the uninsured motorist database program and recommend penalties or sanctions for motorists found to be in violation of the State's mandatory motor vehicle insurance requirements; and

BE IT FURTHER RESOLVED that the working group may form investigative committees and bring in additional stakeholders and interested parties, as appropriate; and

BE IT FURTHER RESOLVED that the working group is encouraged to consult with the Chief Information Officer for the City and County of Honolulu, or another appropriate party who has familiarity with a web services-based database program at the county level; and

BE IT FURTHER RESOLVED that the working group may explore other alternatives or ways to reduce the number of uninsured motorists in the State, including alternative financing options; and

BE IT FURTHER RESOLVED that the Legislative Reference Bureau is requested to submit a final report of the working group's findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2013; provided that the working group transmits a draft report of its findings and recommendations, including any proposed legislation, to the Legislative Reference Bureau no later than November 1, 2012; and

BE IT FURTHER RESOLVED that the working group members not be considered employees for the purposes of chapter 84, Hawaii Revised Statutes, based solely upon their participation in the working group; and

BE IT FURTHER RESOLVED that the working group be dissolved on June 30, 2013; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Insurance Commissioner, Department of the Attorney General, Administrator of the Motor Vehicle and Licensing Division of the City and County of Honolulu, respective county police departments, Property Casualty Insurers Association of America, Hawaii Insurers Council, and State Farm Insurance Companies.

Report Title:

Uninsured Motorists; Uninsured Motorists Database; Working Group

THE SENATE	S.C.R. NO.	97
TWENTY-SIXTH LEGISLATURE, 2012		S.D. 1
STATE OF HAWAII