STAND. COM. REP. NO. 981

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 850
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 850, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO MOTOR VEHICLE INSURANCE,"

begs leave to report as follows:

     The purpose of this measure is to extend the amnesty period
for uninsured motorists and to repeal the requirement that a
person convicted of driving without insurance within five years
of any other prior conviction maintain proof of financial
responsibility in order to avoid an automatic administrative
revocation of the person's license.

     The Insurance Commissioner and an individual presented
testimony in support of the measure.  The Consumer Lawyers of
Hawaii, though not present at the hearing, submitted written
testimony in support of the measure.  State Farm Insurance
Companies presented testimony in opposition to the measure.  The
Honolulu Police Department, though not present at the hearing,
submitted testimony in opposition to the measure. 

     Your Committee finds that the law that grants uninsured
motorists amnesty from penalties and surcharges is achieving its
goal of reducing the number of uninsured motorists in this State.
The Insurance Division has been informed by judges presiding over
traffic violation cases that amnesty provides an incentive for
uninsured motorists to obtain motor vehicle insurance coverage.
Extending the amnesty period will allow even more individuals to

 
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                                   STAND. COM. REP. NO. 981
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come into compliance with the law as insurance premium rates
decrease and become more affordable.

     Your Committee has amended this measure by extending the
proposed amnesty period from December 31, 1999, to June 30, 2000.

     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 H.B. No. 850, H.D. 1, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 850, H.D. 1, S.D. 1, and be placed on the
calendar for Third Reading.

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



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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