STAND. COM. REP. NO. 3456

Honolulu, Hawaii

RE: S.R. No. 140

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.R. No. 140, S.D. 1, entitled:

"SENATE RESOLUTION REQUESTING THE DEPARTMENT OF TRANSPORTATION TO CONDUCT A STUDY OF PERSONAL VEHICLE RENTAL ORGANIZATIONS,"

begs leave to report as follows:

The purpose and intent of this measure is to request the Department of Transportation to convene a working group to study the personal vehicle rental industry.

Your Committee received testimony in opposition to this measure from Turo Inc.

Your Committee finds the evolution of the rental car industry has created new opportunities for innovative ways to rent a car. Recently, a new mode of car rental, known as peer-to-peer car sharing, has developed, wherein private individuals rent their personal vehicles to other individuals on a fee basis via a third party web-based platform. Your Committee further finds that there are no existing regulations specific to the peer-to-peer car sharing industry in Hawaii. Your Committee notes that the State has a vested interest in ensuring that consumers who participate in peer-to-peer car sharing via a third party web-based platform are protected and that vehicles available in peer-to-peer car sharing are being rented to qualified individuals, have adequate insurance coverage, and meet vehicle safety standards. This measure therefore requests the Department of Transportation to convene and chair a working group dedicated to studying this emerging industry.

Your Committee has amended this measure by:

(1) Clarifying that the Director of Transportation is requested to convene a working group to evaluate the regulation of the peer-to-peer car sharing industry, rather than the personal vehicle rental industry, as this more accurately reflects the nomenclature associated with the industry;

(2) Updating the findings associated with the peer-to-peer car sharing industry;

(3) Amending the composition of the working group;

(4) Updating its title; and

(5) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee concurs with the intent and purpose of S.R. No. 140, S.D. 1, as amended herein, and recommends its adoption in the form attached hereto as S.R. No. 140, S.D. 2.

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

________________________________

ROSALYN H. BAKER, Chair