STAND. COM. REP. NO. 117

Honolulu, Hawaii

, 2019

RE: H.B. No. 1033

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Water, Land, & Hawaiian Affairs, to which was referred H.B. No. 1033 entitled:

"A BILL FOR AN ACT RELATING TO MANDATORY VESSEL INSURANCE COVERAGE,"

begs leave to report as follows:

The purpose of this measure is to ensure that the Department of Land and Natural Resources (DLNR) can recover costs incurred because of boat accidents that cause injury to a person, damage to property, a grounding, or a sinking by:

(1) Requiring owners of certain vessels that operate in and on state ocean waters to obtain marine insurance coverage of a specific type and minimum coverage amount;

(2) Providing transient vessels with an exemption from the marine insurance coverage requirement for ten days after the transient vessel arrives in state ocean waters; and

(3) Allowing the DLNR to adopt rules regarding the marine insurance coverage requirement.

BIFA and an individual submitted testimony in opposition to this measure. DLNR offered comments on this measure.

Your Committee has amended this measure by:

(1) Changing the minimum marine insurance coverage to an unspecified amount;

(2) Changing its effective date to July 1, 2050, to promote further discussion; and

(3) Making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Water, Land, & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1033, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1033, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Water, Land, & Hawaiian Affairs,

____________________________

RYAN I. YAMANE, Chair