Honolulu, Hawaii



RE:    S.B. No. 817

       S.D. 1




Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii




     Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 817 entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to:


     (1)  Authorize the sale of stored property insurance by self-service storage facility owners under certain conditions; and


     (2)  Require self-service storage owners to hold a limited lines license to sell, solicit, or offer coverage under a stored property insurance policy.


     Your Committee received testimony in support of this measure from the Self Storage Association and StorQuest Self Storage.  Your Committee received testimony in opposition to this measure from the Department of Commerce and Consumer Affairs.


     Your Committee finds that property stored in a self-service storage unit is in the care, custody, and control of the storage tenant.  Therefore, the storage tenant is responsible for insuring the property.  Approximately fifty percent of storage tenants are in transition and do not have a homeowner's policy or renter's insurance policy covering their stored property, while tenants that do have homeowner's or renter's insurance are subject to a much larger deductible.  Your Committee further finds that stand-alone insurance coverage for stored property is not typically offered by insurance agents because the commission payments are low.  Thirty-one states have solved this gap in coverage by allowing self-service storage facilities to offer their tenants storage insurance, which generally has low monthly premiums and low deductibles.  This measure fills the existing gap in the State's insurance market and allows licensed self-service storage facility owners to provide stored property insurance.


     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.


     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 817, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 817, S.D. 1, and be referred to your Committee on Ways and Means.


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