STAND. COM. REP. NO. 969

Honolulu, Hawaii

RE: S.B. No. 662

S.D. 2

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 S.B. No. 662, 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 improve highway safety by removing potentially unsafe vehicles from the road.

Specifically, this measure:

(1) Prohibits motor vehicle lessors from renting, leasing, or offering for rent or lease vehicles that are subject to a vehicle manufacturer's recall until appropriate repairs are made; and

(2) Requires a person engaging in the peer-to-peer vehicle sharing organization business to register with the Director of Taxation.

Your Committee received written comments in support of this measure from the Department of Commerce and Consumer Affairs and Enterprise Rental Car.

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

Your Committee finds that this measure provides protections for consumers by removing potentially unsafe vehicles from the road, including vehicles that are subject to a manufacturer's recall. However, your Committee notes that, because peer-to-peer vehicle sharing businesses do not own the vehicles that they lease, these businesses have expressed concerns regarding their ability to implement the recall protocols described in this measure.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(2) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

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 S.B. No. 662, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 662, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair