Honolulu, Hawaii



RE:    S.B. No. 155

       S.D. 1




Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii




     Your Committee on Transportation, to which was referred S.B. No. 155 entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to:


     (1)  Adopt uniform standards for peer-to-peer car sharing; and


     (2)  Establish the peer-to-peer car sharing surcharge tax.


     Your Committee received testimony in support of this measure from the Department of Transportation, Internet Association, Technet California and the Southwest, Enterprise Holdings, and Turo Inc.  Your Committee received testimony in opposition to this measure from the Hawaii Association for Justice and one individual.  Your Committee received comments on this measure from the Department of Taxation, Department of Commerce and Consumer Affairs Insurance Division, Department of Commerce and Consumer Affairs Office of Consumer Protection, Tax Foundation of Hawaii, and Grassroots Institute of Hawaii.


     Your Committee finds that peer-to-peer car sharing is a vital, yet nascent, industry in the State.  Due to its growing popularity, residents who participate in peer-to-peer car sharing services need to have uniform protections and safety standards.  Your Committee further finds that rental motor vehicle surcharge revenues deposited into the State Highway Fund amounted to $58,000,000 in 2019, which was twenty percent of the total revenues.  As such, the rental vehicle surcharge tax is a major source of revenue for the State Highway Fund and is vital for the continued operation, maintenance, and construction of the state highway system.  This measure will provide uniform standards for peer-to-peer car sharing services and will also help to preserve revenues deposited into the State Highway Fund.


     Your Committee also finds that further discussion of automobile manufacturer recall requirements may be warranted by the appropriate committee as this measure proceeds.


     Your Committee has amended this measure by:


     (1)  Requiring peer-to-peer car-sharing programs to provide primary insurance coverage for each shared vehicle at similar levels of insurance as required for a transportation network company;


     (2)  Removing language relating to exemptions for vicarious liability;


     (3)  Inserting an effective date of January 1, 2050, to encourage further discussion; and


     (4)  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 Transportation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 155, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 155, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.


Respectfully submitted on behalf of the members of the Committee on Transportation,