STAND. COM. REP. NO. 1158

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 665
                                     S.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Transportation, to which was referred S.B.
No. 665, S.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO MOTORCYCLE INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to include courses that are
approved by the armed services branch installation commander and
that meet the Motorcycle Safety Foundation standards as
motorcycle education courses for purposes of qualifying for
motorcycle liability coverage and insurance binders.

     Your Committee on Transportation finds that motorcycle and
motor scooter riders possessing a valid learner's permit cannot
obtain liability coverage unless they have taken and passed a
motorcycle education course that has been approved by the
Department of Transportation.  Persons possessing a valid
learner's permit cannot obtain a temporary insurance binder
unless they submit proof of enrollment in such a course.  As some
courses on military installations do not have approval from the
Department of Transportation, even though they are certified by
the Motorcycle Safety Foundation (MSF), people who have enrolled
in, taken and passed these courses still are not eligible to
obtain a temporary binder or insurance by law.

     Your Committee further finds that the Department of Defense
(DOD) requires that all military and DOD personnel who wish to
operate a motorcycle or motor scooter on military installations
must have taken an MSF-approved course, regardless of whether

 
 
                                 STAND. COM. REP. NO. 1158
                                 Page 2

 
they hold a license or a permit.  State-approved courses and
courses offered on military installations are similar except for
the fact that State courses provide motorcycles to be used
throughout the course, while the military courses are authorized
to allow the students to use their own motorcycles.

     This bill proposes to require persons who possess a valid
learner's permit and are seeking motorcycle liability coverage to
have taken and passed an education course approved by the
Department of Transportation or the installation commander of any
branch of the U.S. military that meets the Motorcycle Safety
Foundation standards.  It also proposes to allow persons to
obtain a temporary insurance binder, if they have enrolled in a
motorcycle education course which is approved by the Department
of Transportation or the installation commander of any branch of
the armed services, and meets the Motorcycle Safety Foundation
standards.

     Testimonies in support of this bill were received from
Carr's Insurance Agency, Street Bikers United, the World Wide
Motorcycle Club, and several private citizens.  The Department of
Transportation supported the intent of this bill.  Testimonies in
opposition to this bill were received from the University of
Hawaii and two private citizens.

     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.
665, S.D. 2, and recommends that it pass Second Reading and be
referred to the Committee on Consumer Protection and Commerce.

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



                                   ______________________________
                                   KENNETH T. HIRAKI, Chair