STAND. COM. REP. NO. 2922

Honolulu, Hawaii

RE: S.B. No. 2808

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2808 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION NETWORK COMPANIES,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish rules, regulations, and permitting procedures for transportation network companies operating in the State; and

(2) Make permanent insurance requirements for transportation network companies and transportation network drivers.

Your Committee received testimony in support of this measure from the Department of Transportation; Hawaii Passenger and Property Carriers Association; and Uber Technologies, Inc. Your Committee received testimony in opposition to this measure from Roberts Hawaii, Inc. Your Committee received comments on this measure from the Consumer Data Industry Association.

Your Committee finds that driver screening and other operating requirements for transportation network companies are currently only mandated for the City and County of Honolulu. This measure incorporates consensus language between the Department of Transportation and other stakeholders to uniformly regulate transportation network companies across all islands and will help promote public safety for those that utilize transportation network companies as a transportation option.

Your Committee notes the concerns raised in the testimony of the Consumer Data Industry Association that this measure's requirement to have background checks performed only by those companies accredited by the Professional Background Screening Association (PBSA) is problematic and restrictive. As PBSA is a trade association and not a regulatory body, an accreditation from PBSA does not necessarily make background screenings compliant with federal law. Accordingly, an amendment to this measure is necessary to address this concern and remove this limitation.

Your Committee has amended this measure by requiring transportation network companies to conduct a national and local criminal background check for each applicant and driver on an annual basis, and deleting the use of a third-party commercial background check company accredited by the PBSA to perform the required check.

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 is in accord with the intent and purpose of S.B. No. 2808, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2808, S.D. 1.

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

________________________________

ROSALYN H. BAKER, Chair