STAND. COM. REP. NO. 3911

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 Judiciary and Ways and Means, to which was referred H.B. No. 1971, H.D. 2, S.D. 1, 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 programs;

(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, Department of Transportation, Enterprise Holdings, and Hawaii Association for Justice. Your Committees received testimony in opposition to this measure from the Office of Consumer Protection of the Department of Commerce and Consumer Affairs. Your Committees received comments on this measure from the Insurance Division of the Department of Commerce and Consumer Affairs, Hawaii Insurers Council, Tax Foundation of Hawaii, Turo, and Getaround.

Your Committees find that peer-to-peer car-sharing allows for vehicle owners to rent their vehicles to others through online platforms.  Your Committees further find that peer-to-peer car-sharing, while growing in popularity, continues to be an unregulated industry. Your Committees additionally find that establishing a regulatory scheme for peer-to-peer car-sharing promotes the public interest. This measure establishes regulatory requirements and clarifies application of taxation laws for peer-to-peer car-sharing programs.

As affirmed by the records of votes of the members of your Committees on Judiciary and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1971, H.D. 2, S.D. 1, and recommend that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committees on Judiciary and Ways and Means,

________________________________ DONOVAN M. DELA CRUZ, Chair

________________________________ KARL RHOADS, Chair