STAND. COM. REP. NO. 1967

Honolulu, Hawaii

RE: H.B. No. 241

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 241, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLES,"

begs leave to report as follows:

The purpose and intent of this measure is to regulate peer-to-peer motor vehicle sharing organizations in the State.

Specifically, this measure:

(1) Defines terms related to peer-to-peer motor vehicle sharing organizations;

(2) Prohibits vehicle lessors from renting, leasing, or offering for rent or lease, vehicles subject to a manufacturer's recall until all required repairs are made;

(3) Requires a peer-to-peer motor vehicle sharing organization operating in the State to register with the Director of Taxation; and

(4) Requires all vehicles rented or leased by peer-to-peer vehicle sharing organizations to carry minimum liability insurance coverage.

Your Committee received written comments in support of this measure from the Department of Commerce and Consumer Affairs, Department of Taxation, and Enterprise Holdings.

Your Committee received written comments in opposition to this measure from Drift, Getaround, and Turo.

Your Committee received written comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that this measure protects consumer safety by increasing accountability in the peer-to-peer motor vehicle sharing industry, thereby protecting the State's residents and visitors who rent or lease cars.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 241, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair