Bill Text: HI SB2342 | 2024 | Regular Session | Amended

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Bill Title: Relating To Transportation.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2024-07-02 - Act 138, 07/01/2024 (Gov. Msg. No. 1239). [SB2342 Detail]

Download: Hawaii-2024-SB2342-Amended.html

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THE SENATE	S.B. NO.	2342
THIRTY-SECOND LEGISLATURE, 2024		S.D. 2
STATE OF HAWAII		H.D. 3

A BILL FOR AN ACT

 

 

RELATING TO TRANSPORTATION.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

PART I

     SECTION 1.  The legislature finds that traffic fatalities and injuries in Hawaii have increased, with a record high of one hundred seventeen traffic fatalities and five hundred seventy serious traffic-related injuries in 2022.  In the first six months of 2023, Hawaii had forty-three traffic fatalities, with two deaths occurring immediately outside of public schools.  The legislature recognizes that these tragic events demonstrate the need for greater safeguards and deterrents to improve safety on Hawaii's streets and better protect Hawaii's residents.

     The legislature also recognizes that the increase in traffic violations committed by repeat offenders, including driving without a license and speeding, is jeopardizing the safety and welfare of Hawaii residents.  The legislature acknowledges that increased fines for these repeat offenders are necessary to both deter repeat violations of Hawaii's traffic laws and hold these individuals accountable for their actions.

     The legislature further finds that repeated violations of the State's minimum motor vehicle insurance policy requirements have increased, burdening innocent victims of motor vehicle accidents with the cost of accidents caused by repeat offenders.  Motor vehicle insurance minimums have remained unamended for nearly twenty-five years, making the required liability insurance minimums insufficient to protect Hawaii residents from repeat offenders.

     The legislature also finds that with rising inflation, failure to increase motor vehicle insurance will operate as a financial burden imposed on tort victims throughout Hawaii.  The legislature notes that the State is experiencing medical inflation, which has substantially increased the average cost of motor vehicle accident-related injuries since the required motor vehicle insurance minimums were last amended.  The legislature also notes that Hawaii's outdated liability insurance minimum requirements disproportionately impact residents injured in motor vehicle accidents, and are no longer sufficient to protect law-abiding drivers and pedestrians.  The legislature believes that it is necessary to mitigate these impacts on Hawaii residents through legislation to increase certain traffic fines and required motor vehicle insurance minimums.

     Accordingly, the purpose of this part is to amend the penalties for repeated traffic violations, reckless driving violations, violations of excessive speeding, and driving without motor vehicle liability insurance.

     SECTION 2.  Section 286-136, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Any person who is convicted of violating section 286‑102, 286-122, 286-130, 286-131, 286-132, 286-133, or 286-134 shall be subject to a minimum fine of [$500] $           and a maximum fine of [$1,000,] $          , or imprisoned no less than thirty days and no more than one year, or both, if the person has two or more prior convictions for the same offense in the preceding five-year period."

     SECTION 3.  Section 291-2, Hawaii Revised Statutes, is amended to read as follows:

     "§291-2  Reckless driving of a vehicle or riding of [animals;] an animal; penalty.  [Whoever] (a)  Any person who operates any vehicle or rides any animal recklessly in disregard of the safety of persons or property [is] shall be guilty of reckless driving of a vehicle or reckless riding of an animal, as appropriate, and shall be fined [not] no more than $1,000 or imprisoned [not] no more than thirty days, or both.

     (b)  Any person who is convicted of violating subsection (a) shall be subject to a minimum fine of $          , and a maximum fine of $          , or imprisoned no less than thirty days and no more than one year, or both, if the person has two or more prior convictions for the same offense in the preceding five-year period."

     SECTION 4.  Section 291C-105, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  Any person who violates this section shall be guilty of a petty misdemeanor and shall be sentenced as follows without the possibility of probation or suspension of sentence:

     (1)  For a first offense not preceded by a prior conviction for an offense under this section in the preceding five years:

          (A)  A fine of [not] no less than $500 and [not] no more than $1,000;

          (B)  Thirty-day prompt suspension of license and privilege to operate a vehicle during the suspension period, or the court may impose, in lieu of the thirty-day prompt suspension of license, a minimum fifteen-day prompt suspension of license with absolute prohibition from operating a vehicle and, for the remainder of the thirty-day period, a restriction on the license that allows the person to drive for limited work‑related purposes;

          (C)  Attendance in a course of instruction in driver retraining;

          (D)  A surcharge of $25 to be deposited into the neurotrauma special fund;

          (E)  May be charged a surcharge of up to $100 to be deposited into the trauma system special fund if the court so orders;

          (F)  An assessment for driver education pursuant to section 286G-3; and

          (G)  Either one of the following:

              (i)  Thirty-six hours of community service work; or

             (ii)  [Not] No less than forty-eight hours and [not] no more than five days of imprisonment;

     (2)  For an offense that occurs within five years of a prior conviction for an offense under this section, by:

          (A)  A fine of [not] no less than [$750] $           and [not] no more than [$1,000;] $          ;

          (B)  Prompt suspension of license and privilege to operate a vehicle for a period of thirty days with an absolute prohibition from operating a vehicle during the suspension period;

          (C)  Attendance in a course of instruction in driver retraining;

          (D)  A surcharge of $25 to be deposited into the neurotrauma special fund;

          (E)  May be charged a surcharge of up to [$100] $           to be deposited into the trauma system special fund if the court so orders;

          (F)  An assessment for driver education pursuant to section 286G-3; and

          (G)  Either one of the following:

              (i)  [Not] No less than one hundred twenty hours of community service work; or

             (ii)  [Not] No less than five days [but not] and no more than fourteen days of imprisonment of which at least forty-eight hours shall be served consecutively; and

     (3)  For an offense that occurs within five years of two prior convictions for offenses under this section, by:

          (A)  A fine of [$1,000;] $          ;

          (B)  Revocation of license and privilege to operate a vehicle for a period of [not] no less than ninety days [but not] and no more than one year;

          (C)  Attendance in a course of instruction in driver retraining;

          (D)  No fewer than [ten] thirty days [but] and no more than [thirty] ninety days of imprisonment of which at least forty-eight hours shall be served consecutively;

          (E)  A surcharge of $25 to be deposited into the neurotrauma special fund;

          (F)  May be charged a surcharge of up to [$100] $           to be deposited into the trauma system special fund if the court so orders; and

          (G)  An assessment for driver education pursuant to section 286G-3."

     SECTION 5.  Section 431:10C-117, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a)(1)  Any person subject to this article in the capacity of the operator, owner, or registrant of a motor vehicle operated in this State, or registered in this State, who violates any applicable provision of this article, shall be subject to citation for the violation by any county police department in a form and manner approved by the traffic and emergency period violations bureau of the district court of the first circuit;

     (2)  Notwithstanding any provision of the Hawaii Penal Code:

          (A)  Each violation shall be deemed a separate offense and shall be subject to a fine of no less than [$100 nor] $           and no more than [$5,000] $          , which shall not be suspended except as provided in subparagraph (B); and

          (B)  If the person is convicted of not having had a motor vehicle insurance policy in effect at the time the citation was issued, the fine shall be [$500] $           for the first offense and a minimum of [$1,500] $           for each subsequent offense that occurs within a five-year period from any prior offense; provided that the court:

              (i)  Shall have the discretion to suspend all or any portion of the fine if the defendant provides proof of having a current motor vehicle insurance policy; provided further that upon the defendant's request, the court may grant community service in lieu of the fine, of no less than seventy-five hours and no more than one hundred hours for the first offense, and no less than [two] five hundred hours [nor] and no more than [two hundred seventy-five] seven hundred fifty hours for the second offense; and

             (ii)  May grant community service in lieu of the fine for subsequent offenses at the court's discretion;

     (3)  In addition to the fine in paragraph (2), the court shall either:

          (A)  Suspend the driver's license of the driver or of the registered owner for:

              (i)  Three months for the first conviction; and

             (ii)  One year for any subsequent offense within a five-year period from a previous offense;

              provided that the driver or the registered owner shall not be required to obtain proof of financial responsibility pursuant to section 287‑20; or

          (B)  Require the driver or the registered owner to keep a nonrefundable motor vehicle insurance policy in force for six months;

     (4)  Any person subject to a fine under this section and who fails to timely pay the fine shall be given an opportunity to petition the court to demonstrate that the person's nonpayment or inability to pay is not wilful; provided that if the person petitions the court, the court shall make an individualized assessment of the person's ability to pay based upon the totality of the circumstances, including the person's disposable income, financial obligations, and liquid assets; provided further that if the court determines that the person's nonpayment or inability to pay is not wilful, the court may enter an order that allows additional time for payment; reduces the amount of each installment; revokes the fee or fine, or unpaid portion thereof, in whole or in part; or converts any outstanding fine to community service;

     (5)  Any person cited under this section shall have an opportunity to present a good faith defense, including lack of knowledge or proof of insurance; provided that the general penalty provision of this section shall not apply to:

          (A)  Any operator of a motor vehicle owned by another person if the operator's own insurance covers such driving;

          (B)  Any operator of a motor vehicle owned by that person's employer during the normal scope of that person's employment; or

          (C)  Any operator of a borrowed motor vehicle if the operator holds a reasonable belief that the subject vehicle is insured;

     (6)  In the case of multiple convictions for driving without a valid motor vehicle insurance policy within a five-year period from any prior offense, the court, in addition to any other penalty, shall impose the following penalties:

          (A)  Imprisonment of no more than thirty days;

          (B)  Suspension or revocation of the motor vehicle registration plates of the vehicle involved;

          (C)  Impoundment, or impoundment and sale, of the motor vehicle for the costs of storage and other charges incident to seizure of the vehicle, or any other cost involved pursuant to section 431:10C-301; or

          (D)  Any combination of those penalties; and

     (7)  Any violation as provided in paragraph (2)(B) shall not be deemed to be a traffic infraction as defined by chapter 291D."

PART II

     SECTION 6.  Section 431:10C-103, Hawaii Revised Statutes, is amended as follows:

     1.  By adding a new definition to be appropriately inserted and to read:

     ""U-drive motor vehicle insurance policy" means a motor vehicle insurance policy that meets the requirements set forth in section 431:10C-301(c)."

     2.  By amending the definitions of "insured" and "insured motor vehicle" to read:

     ""Insured" means:

     (1)  The person identified by name as insured in a motor vehicle insurance policy complying with section 431:10C-301; [and]

     (2)  A person residing in the same household with a named insured, specifically:

          (A)  A spouse or reciprocal beneficiary or other relative of a named insured; and

          (B)  A minor in the custody of a named insured or of a relative residing in the same household with a named insured[.]; and

     (3)  A customer who rents a U-drive motor vehicle from a U‑drive rental business.

[A person resides] As used in this definition, "person residing in the same household [if the]" means a person who usually makes the person's home in the same family unit[, which may include] and includes reciprocal beneficiaries, [even though] regardless of whether the person temporarily lives elsewhere.

     "Insured motor vehicle" means a motor vehicle:

     (1)  [Which] That is insured under a motor vehicle insurance policy; [or]

     (2)  The owner of which is a self-insurer with respect to [such] the vehicle[.]; or

     (3)  That is U-drive motor vehicle."

     SECTION 7.  Section 431:10C-301, Hawaii Revised Statutes, is amended to read as follows:

     "§431:10C-301  Required motor vehicle policy coverage.  (a)  An insurance policy covering a motor vehicle shall provide:

     (1)  Coverage specified in section 431:10C-304; and

     (2)  Insurance to pay on behalf of the owner or any operator of the insured motor vehicle using the motor vehicle with a reasonable belief that the person is entitled to operate the motor vehicle, sums [which] that the owner or operator may legally be obligated to pay for injury, death, or damage to property of others, except property owned by, being transported by, or in the charge of the insured, [which] that arise out of the ownership, operation, maintenance, or use of the motor vehicle; provided that in the case of a U-drive motor vehicle, insurance to pay on behalf of the renter or any operator of the insured motor vehicle using the motor vehicle with the express permission of the renter or lessee, sums [which] that the renter or operator may be legally obligated to pay for damage or destruction of property of others (except property owned by, being transported by, or in the charge of the renter or operator) arising out of the operation or use of the motor vehicle with coverage in an amount that is equal to or greater than the amounts set forth in subsection (c) unless the motor vehicle is reported stolen by the owner within three days of notification of the incident; provided that the insurer and owner of a U-drive motor vehicle shall have the right of subrogation against the renter and operator for breach of the rental contract between owner and renter; [and] provided further that, in the event that any motor vehicle offered for rental or lease is involved in an accident, the lessor shall provide all information it has or obtains relevant to the accident to all other involved parties upon their request, including but not limited to information about the lessee, and the driver of the vehicle if other than the lessee.

     (b)  [A] Except as otherwise provided in this section, each motor vehicle insurance policy shall include:

     (1)  If issued before January 1, 2027:

     [(1)] (A) Liability coverage of [not] no less than [$20,000] $           per person, with an aggregate limit of [$40,000] $           per accident, for all damages arising out of accidental harm sustained as a result of any one accident and arising out of the ownership, maintenance, use, loading, or unloading of a motor vehicle; and

     [(2)] (B) Liability coverage of [not] no less than [$10,000] $           for all damages arising out of damage to or destruction of property including motor vehicles and including the loss of use thereof, but not including property owned by, being transported by, or in the charge of the insured, as a result of any one accident arising out of the ownership, maintenance, use, loading, or unloading, of the insured vehicle;

     (2)  If issued on or after January 1, 2027:

         (A)  Liability coverage of no less than $           per person, with an aggregate limit of $           per accident, for all damages arising out of accidental harm sustained as a result of any one accident and arising out of the ownership, maintenance, use, loading, or unloading of a motor vehicle; and

         (B)  Liability coverage of no less than $           for all damages arising out of damage to or destruction of property including motor vehicles and including the loss of use thereof, but not including property owned by, being transported by, or in the charge of the insured, as a result of any one accident arising out of the ownership, maintenance, use, loading, or unloading, of the insured vehicle;

     (3)  With respect to any motor vehicle registered or principally garaged in this State, liability coverage provided therein or supplemental thereto, in limits for bodily injury or death set forth in [paragraph (1),] paragraph (1)(A) or (2)(A), as applicable, under provisions filed with and approved by the commissioner, for the protection of persons insured thereunder who are legally entitled to recover damages from owners or operators of uninsured motor vehicles because of bodily injury, sickness, or disease, including death, resulting therefrom; provided that the coverage required under this paragraph shall not be applicable where any named insured in the policy shall reject the coverage in writing; and

     (4)  Coverage for loss resulting from bodily injury or death suffered by any person legally entitled to recover damages from owners or operators of underinsured motor vehicles.  An insurer may offer the underinsured motorist coverage required by this paragraph in the same manner as uninsured motorist coverage; provided that the offer of both shall:

          (A)  Be conspicuously displayed so as to be readily noticeable by the insured;

          (B)  Set forth the premium for the coverage adjacent to the offer in a manner that the premium is clearly identifiable with the offer and may be easily subtracted from the total premium to determine the premium payment due in the event the insured elects not to purchase the option; and

          (C)  Provide for written rejection of the coverage by requiring the insured to affix the insured's signature in a location adjacent to or directly below the offer.

     (c)  Each U-drive rental business shall ensure that during each rental period, the U-drive motor vehicle is insured under a motor vehicle insurance policy that includes:

     (1)  Primary insurance coverage for each U-drive motor vehicle amounting to no less than      times the amounts set forth in subsection (b) for death, bodily injury, and property damage per accident, and costs of defense outside the limits;

     (2)  Primary insurance coverage for each U-drive motor vehicle for personal injury protection coverage that meets the minimum coverage amounts required by section 431:10C-103.5; and

     (3)  The following optional coverages that any named insured, renter, or operator may elect to reject or purchase and that provide primary coverage for each U‑drive motor vehicle obtained and used from a U-drive rental business:

          (A)  Uninsured and underinsured motorist coverages as provided for in this section, which shall be equal to the primary liability limits specified in this subsection; provided that uninsured and underinsured motorist coverage offers shall provide for written rejection of the coverages as provided in this section;

          (B)  Uninsured and underinsured motorist coverage stacking options as provided in subsection (e); provided that the offer of the stacking options shall provide for written rejection as provided in this section; and

          (C)  An offer of required optional additional insurance coverages as provided in section 431:l0C-302.

     (d)  If the only named insured under the motor vehicle insurance policy issued pursuant to subsection (c) is the U-drive rental business, the insurer or the U-drive rental business shall:

     (1)  Disclose the coverages in writing to the customer;

     (2)  Disclose to the customer in writing that all optional coverages available may not have been purchased under this section and section 431:10C-302; and

     (3)  Obtain a written acknowledgment from the customer of receipt of the written disclosures required in paragraphs (1) and (2).

Within fifteen days after providing the disclosure to the customer, the standard disclosure forms used in paragraphs (1) and (2), and any modifications of these forms intended to be used, shall be filed with the commissioner.  Within fifteen days after the filing a modified disclosure, the insurer or U-drive rental business shall send to the customer each modified disclosure form and obtain written acknowledgment from the customer.  The disclosures and acknowledgment may be sent and received by electronic means.

     [(c)] (e)  The stacking or aggregating of uninsured motorist coverage or underinsured motorist coverage is prohibited, except as provided in subsection [(d).] (f).

     [(d)] (f)  An insurer shall offer the insured the opportunity to purchase uninsured motorist coverage and underinsured motorist coverage by offering the following options with each motor vehicle insurance policy:

     (1)  The option to stack uninsured motorist coverage and underinsured motorist coverage; and

     (2)  The option to select uninsured motorist coverage and underinsured motorist coverage, whichever is applicable, up to but not greater than the bodily injury liability coverage limits in the insured's policy.

     These offers are to be made when a motor vehicle insurance policy is first applied for or issued.  For any existing policies, an insurer shall offer [such] the coverage at the first renewal after January 1, 1993.  Once an insured has been provided the opportunity to purchase or reject the coverages in writing under the options, no further offer is required to be included with any renewal or replacement policy issued to the insured.

     [(e)] (g)  If uninsured motorist coverage or underinsured motorist coverage is rejected, pursuant to [section 431:10C‑301(b):] subsection (b):

     (1)  The offers required by [section 431:10C-301(d)] subsection (f) are not required to be made;

     (2)  No further offers or notice of the availability of uninsured motorist coverage and underinsured motorist coverage are required to be made in connection with any renewal or replacement policy; and

     (3)  The written rejections required by [section 431:10C‑301(b)] subsection (b) shall be presumptive evidence of the insured's decision to reject the options.

     (h)  The requirements of this part shall apply in the same manner to any U-drive rental business that self-insures pursuant to section 431:10C-105."

     SECTION 8.  Section 431:10C-303.5, Hawaii Revised Statutes, is amended to read as follows:

     "§431:10C-303.5  U-drive insurance policy; primary.  [(a)]  A U-drive motor vehicle insurance policy, as provided for in section 431:10C-301, shall be primary; provided that [its] the bodily injury and property damage liability coverages provided for in the operator's or renter's motor vehicle insurance policies shall be secondary to the [operator's or renter's] U‑drive motor vehicle insurance policy [if:

     (1)  The U-drive rental business provides any claimant or person sustaining accidental harm or damages, as a result of the operation of the rental vehicle, the identity and address of the operator or renter, along with any information available to the U-drive rental business as to the identity and address of any insurer under any liability policies applicable to the operator or renter; provided that the U-drive rental business shall make reasonable efforts to obtain such information;

     (2)  A suit may be filed and service upon the responsible operator or renter can be effectuated; and

     (3)  An insurer responds on behalf of the operator or renter to a claim or suit.

     (b)  In cases where the U-drive motor vehicle insurance policy is primary because of:

     (1)  A failure of a renter or operator to cooperate with the U-drive rental business in providing the information described in subsection (a)(1);

     (2)  The failure to file suit and effectuate service as described in subsection (a)(2); or

     (3)  The failure of an insurer to respond as described in subsection (a)(3) or defend a claim or pay required benefits or a judgment;

the U-drive rental business may recover from the renter, operator, or insurer, the sums the U-drive rental business expended in payments or benefits, along with reasonable attorneys' fees and expenses]."

     SECTION 9.  Section 431:10C-802, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  A peer-to-peer car-sharing program shall ensure that during each car-sharing period, the shared car is insured under a motor vehicle insurance policy that provides:

     (1)  Primary insurance coverage for each shared car available and used through a peer-to-peer car‑sharing program in amounts no less than [four]      times the amounts set forth in section 431:10C‑301(b) for death, bodily injury, and property damage per accident, and costs of defense outside the limits;

     (2)  Primary insurance coverage for each shared car available and used through a peer-to-peer car‑sharing program for personal injury protection coverage that meets the minimum coverage amounts required by section 431:10C-103.5; and

     (3)  The following optional coverages, which any named insured may elect to reject or purchase, that provides primary coverage for each shared car available and used through a peer-to-peer car‑sharing program:

         (A)  Uninsured and underinsured motorist coverages as provided in section 431:10C-301, which shall be equal to the primary liability limits specified in this section; provided that uninsured and underinsured motorist coverage offers shall provide for written rejection of the coverages as provided in section 431:10C‑301;

         (B)  Uninsured and underinsured motorist coverage stacking options as provided in section 431:10C-301; provided that the offer of the stacking options shall provide for written rejection as provided in section 431:10C-301;

         (C)  An offer of required optional additional insurance coverages as provided in section 431:10C-302; and

         (D)  In the event the only named insured under the motor vehicle insurance policy issued pursuant to this section is the peer-to-peer car-sharing program, the insurer or the peer-to-peer car‑sharing program shall:

              (i)  Disclose the coverages in writing to the shared car driver;

             (ii)  Disclose to the shared car driver in writing that all optional coverages available may not have been purchased under sections 431:10C-301 and 431:10C‑302; and

            (iii)  Obtain a written acknowledgement from the shared car driver of receipt of the written disclosures required in paragraphs (1) and (2).  The standard disclosure forms used in paragraphs (1) and (2), and every modification of forms intended to be used, shall be filed with the commissioner within fifteen days of providing the disclosure to the shared car driver.  The insurer or the peer-to-peer car-sharing program shall also send to the shared car driver every modified disclosure form within fifteen days of the filing of the modified disclosure form and comply with paragraph (3).  The disclosures and acknowledgement may be sent and received by electronic means."

PART III

     SECTION 10.  The insurance commissioner shall issue a memorandum to solicit rate filings from motor vehicle insurers to reflect amendments made to section 431:10C-301(b)(1)(A) and (B), Hawaii Revised Statutes, by section 7 of this Act no later than July 1, 2024.  Rate filings shall be due no later than December 1, 2024, and the relevant rate changes shall be effective for new and renewal policies on or after July 1, 2025.

PART IV

     SECTION 11.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 12.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 13.  This Act shall take effect on July 1, 3000; provided that part III shall take effect on January 1, 2026.

 

 

Report Title:

Transportation; Motor Vehicles; Traffic Laws; Penalties; Insurance Minimums; Insurance Rates; Rate Filings; U-drive Motor Vehicles; Peer-to-Peer Car Sharing; Insurance Coverage Requirements

 

Description:

Amends the penalties for violations of certain traffic laws and required motor vehicle insurance minimums.  Establishes primary and optional coverage requirements for U-drive motor vehicle insurance policies.  Establishes disclosure requirements for U-drive motor vehicle insurance policies.  Amends the required coverage for shared cars that are made available through a peer-to-peer car-sharing program during the car-sharing period.  Requires the Insurance Commissioner to solicit rate filings from motor vehicle insurers.  Effective 7/1/3000.  (HD3)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.