STAND. COM. REP. NO.  266

 

Honolulu, Hawaii

                , 2011

 

RE:   H.B. No. 392

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Transportation, to which was referred H.B. No. 392 entitled:

 

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

 

begs leave to report as follows:

 

     The purpose of this bill is to prohibit persons who contract for transportation services with a regulated motor carrier from requiring the motor carrier to indemnify the person and the person's agents, employees, servants, or independent contractors from claims and liabilities for their negligence, intentional acts, or intentional omissions.

 

     The Hawaii Transportation Association (HTA) and Elite Limousine Service, Inc., testified in support of this bill.

 

     According to HTA, there currently exists a situation in the commercial transportation industry where motor carriers are often required to sign contracts or agreements indemnifying the motor carriers' customers, which are generally facilities where cargo is loaded or unloaded or passengers are picked-up or dropped-off, from claims or liability regardless of fault.  In essence, the motor carrier becomes an insurer for the customer because liability has been shifted from the customer to the motor carrier through a contract.  This situation appears to be inequitable and this measure attempts to correct this matter.

 

     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 H.B. No. 392 and recommends that it pass Second Reading and be referred to the Committees on Consumer Protection & Commerce and Judiciary.

 

 

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

 

 

 

 

____________________________

JOSEPH M. SOUKI, Chair