STAND. COM. REP. NO. 3494

Honolulu, Hawaii

RE: H.B. No. 1971

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committees on Transportation and Commerce and Consumer Protection, to which was referred H.B. No. 1971, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO PEER-TO-PEER CAR-SHARING,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Authorize and regulate peer-to-peer car-sharing, including establishing insurance requirements;

(2) Impose the general excise tax and rental motor vehicle surcharge tax on peer-to-peer car-sharing programs; and

(3) Require those persons engaging or continuing in a peer-to-peer car-sharing program to register with the Department of Taxation.

Your Committees received testimony in support of this measure from the Department of Taxation, Hawaii Insurers Council, Enterprise Holdings, American Property Casualty Insurance Association, GEICO, Maui Metropolitan Planning Organization, and the Hawaii Association for Justice. Your Committees received testimony in opposition to this measure from the Department of Commerce and Consumer Affairs' Offices of Consumer Protection. Your Committees received comments on this measure from the Department of Commerce and Consumer Affairs Insurance Division, Tax Foundation of Hawaii, Getaround, and Turo.

Your Committees find that establishment of regulations and clarification of tax rules are necessary for peer-to-peer car-sharing programs. This measure establishes requirements and clarifies taxation laws for peer-to-peer car-sharing programs.

Your Committees note that existing law empowers the Department of Transportation Airports Division to establish policies and rules governing use and access to the airports' premises. Peer-to-peer car-sharing programs should be subject to such rules when operating at airports.

Your Committees have amended this measure by:

(1) Removing insurance provisions governing peer-to-peer car-sharing;

(2) Clarifying that both the shared car owner and peer-to-peer car-sharing program are responsible for ensuring cars with recalls are not in circulation;

(3) Clarifying that the peer-to-peer car-sharing program shall be subject to the rental vehicle surcharge tax; and

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

As affirmed by the records of votes of the members of your Committees on Transportation and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1971, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1971, H.D. 2, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Transportation and Commerce and Consumer Protection,

________________________________ ROSALYN H. BAKER, Chair

________________________________ CHRIS LEE, Chair