STAND. COM. REP. NO. 790

Honolulu, Hawaii

RE: S.B. No. 1197

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 1197, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AIRCRAFT,"

begs leave to report as follows:

The purpose and intent of this measure is to require tour aircraft operators in the State to carry aircraft liability insurance coverage.

Your Committee received testimony in support of this measure from the Department of Transportation, Blue Hawaiian, and Hawaii Association for Justice.

Your Committee received testimony in opposition to this measure from the Department of the Attorney General, Jack Harter Helicopters, Vertical Aviation International, Rainbow Helicopters, National Air Transportation Association, and National Business Aviation Association.

Your Committee finds that the safety of air tour operations in the State remains a significant concern. The recent incidents involving fatal crashes further demonstrate the need for stronger safety measures and accountability within the industry. This measure enhances aircraft safety regulations by requiring the Director of Transportation to establish rules that increase the minimum insurance requirements for tour aircraft operators in the State.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1197, S.D. 1, and recommends that it pass Third Reading.

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

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JARRETT KEOHOKALOLE, Chair