STAND. COM. REP. NO. 376

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 485
                                        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 S.B. No. 485 entitled: 

     "A BILL FOR AN ACT RELATING TO FREE NO-FAULT MOTOR VEHICLE
     INSURANCE,"

begs leave to report as follows:

     The purpose of this measure is to entitle certain recipients
of public assistance medical services benefits and recipients of
Social Security Disability Insurance benefits to free motor
vehicle insurance coverage under the joint underwriting plan.

     The Department of Human Services presented testimony in
support of this measure and proposed amendments to the measure.
An individual presented testimony in support of the measure.  Two
individuals, though not present, submitted written testimony in
support of the measure.  The Insurance Commissioner presented
comments on the measure.  State Farm Insurance presented
testimony in opposition to the measure. 

     Your Committee finds that, in 1994, recipients of public
assistance in the form of medical services were disqualified from
receiving free motor vehicle insurance coverage pursuant to Act
225, Session Laws of Hawaii (SLH), 1994.  This measure would
re-establish coverage to those individuals affected by Act 225,
SLH, 1994, and who also currently receive public assistance
medical services. 


 
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                                   STAND. COM. REP. NO. 376
                                   Page 2


     Your Committee has amended this measure by describing the
class of drivers entitled to receive no-cost motor vehicle
insurance coverage on the basis of the receipt of public
assistance in the form of medical services as those drivers who
are currently receiving the benefits and who received the
benefits prior to July 1, 1994.  Your Committee has also removed
a reference to recipients of Social Security Disability Insurance
benefits.

     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. 485, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 485, S.D. 1, and be referred to the Committee on Ways and
Means.

                                   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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