Hawaii-2016-SB2777-Amended

SECTION 1. The legislature finds that transportation network companies are entities that use a digital network to connect riders with a transportation network company driver who is offering services using the driver's personal vehicle. Transportation network companies have become increasingly popular throughout the country, including in Hawaii, and have expanded transportation options for the benefit of the public. Although the public has been receptive to this innovation in transportation services, transportation network companies are not currently regulated in Hawaii and therefore, there are no consumer protections in place for members of the public who use the services of transportation network companies.

The legislature further finds that concerns have been raised about potential gaps in motor vehicle insurance coverage associated with transportation network companies. In response to these concerns, by the end of 2015, twenty-nine states enacted legislation to establish insurance requirements covering transportation network companies, thereby protecting transportation network company drivers, their passengers, and the public.

The legislature additionally finds that concerns have also been raised about certain consumer protection aspects of the taxicab industry in Hawaii. The policy of the State is to promote safe and reliable privately-owned public passenger vehicle service to provide the benefits of that service. In furtherance of this policy, minimum consumer protection requirements for taxicab companies and taxicab drivers, including driver requirements, zero tolerance policies, and anti-discrimination policies, should be established at the state level and enforced and regulated by the counties. The legislature notes that these requirements should also apply to transportation network companies, as consumers in Hawaii should be confident that similar consumer protections are available, regardless of the type of transportation service a consumer chooses to use.

Accordingly, the purpose of this Act is to establish various consumer protection requirements for transportation network companies and taxicab companies by:

(1) Requiring the counties to regulate transportation network companies and transportation network company drivers and issue permits to transportation network companies;

(2) Require transportation network companies to pay an annual airport permit fee to the department of transportation, for purposes of authorizing transportation network company drivers to pick up and discharge riders at airports in the State;

(3) Establish insurance, qualifications, and other requirements for transportation network companies and transportation network company drivers; and

(4) Establish minimum standards for driver qualifications, drug and alcohol policies, and antidiscrimination and accessibility policies for taxicab companies and taxicab drivers operating within each county.

SECTION 2. Chapter 46, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . TRANSPORTATION NETWORK COMPANIES

§46-A Definitions. As used in this part:

"Department" means the department of transportation.

"Digital network" means any online-enabled application, software, website, or system offered or utilized by a transportation network company that enables the prearrangement of rides with transportation network company drivers.

"Personal vehicle" means a vehicle that is used by a transportation network company driver and is:

(1) Owned, leased, or otherwise authorized for use by the transportation network company driver; and

(2) Not a taxicab, limousine, or other for-hire vehicle.

"Prearranged ride" means the provision of transportation by a driver to a rider, beginning when a driver accepts a ride requested by a rider through a digital network controlled by a transportation network company, continuing while the driver transports a requesting rider, and ending when the last requesting rider departs from the personal vehicle. A prearranged ride shall not include transportation provided using a taxicab, limousine, or other for-hire vehicle.

"Transportation network company" means a corporation, partnership, sole proprietorship, or other entity that operates in Hawaii and uses a digital network to connect transportation network company riders to transportation network company drivers who provide prearranged rides. A transportation network company shall not be deemed to control, direct, or manage the personal vehicles or transportation network company drivers that connect to its digital network, except where agreed to by written contract.

"Transportation network company driver" or "driver" means an individual who:

(1) Receives connections to potential riders and related services from a transportation network company in exchange for payment of a fee to the transportation network company; and

(2) Uses a personal vehicle to offer or provide a prearranged ride to riders upon connection through a digital network controlled by a transportation network company in return for compensation or payment of a fee.

"Transportation network company rider" or "rider" means an individual or persons who use a transportation network company's digital network to connect with a transportation network company driver who provides prearranged rides to the rider in the driver's personal vehicle between points chosen by the rider.

§46-B Relation to other laws. A transportation network company shall be deemed to be a taxicab company for purposes of county regulations.

§46-C Permit required. (a) No person shall operate a transportation network company in the State without first obtaining a permit from the appropriate county agency.

(b) A permit shall be issued to each application that:

(1) Meets the definition of a transportation network company under section 46-A;

(2) Pays an annual airport permit fee of $10,000 to the department in accordance with subsection (d); and

(3) Submits to the department and the appropriate county agency the following:

(A) The contact information, including name, address, and telephone number, of the agent maintained for service of process pursuant to section 46-D;

(B) A copy of the insurance policy for the transportation network company that meets the requirements of section 46-I;

(C) A copy of the disclosures required to be provided to transportation network company drivers pursuant to section 46-J; and

(D) An affidavit stating that the applicant will operate consistent with the provisions of this part.

(d) The airport permit fees collected under subsections (b) and (c) shall be deposited to the credit of the airports division of the department for purposes of authorizing transportation network company drivers to pick up and discharge riders at airports in the State and ensuring transportation network companies and transportation network company drivers comply with all other applicable department rules regarding motor vehicles for hire picking up and discharging passengers at airports in the State.

§46-D Agent. A transportation network company shall maintain an agent in the State for service of process.

§46-E Business registration. A transportation network company driver shall register as a business entity with the business registration division of the department of commerce and consumer affairs.

§46-F Duration of fare; amount charged for fare. (a) Transportation network company fare shall be deemed to:

(1) Commence when a transportation network company driver begins to transport a rider in the transportation network company driver's personal vehicle; and

(2) Conclude when the rider exits the transportation network company driver's personal vehicle.

(b) On behalf of a transportation network company driver, a transportation network company may charge riders; provided that, if a fare is charged, the transportation network company shall disclose to riders the fare calculation method on its website or within the digital network. The transportation network company shall also provide riders with the applicable rates being charged and the option to receive an estimated fare before the rider enters the transportation network company driver's personal vehicle.

§46-G Identification of vehicles and drivers. In accordance with applicable county ordinances or rules, the transportation network company's digital network shall display a picture of:

(1) The transportation network company driver; and

(2) The license plate number of the motor vehicle being used for providing the prearranged ride,

before the rider enters the transportation network company driver's vehicle.

§46-H Electronic receipt. In accordance with applicable county ordinances or rules, within a reasonable period of time following the completion of a trip, a transportation network company shall transmit an electronic receipt to the rider that specifies:

(1) The origin and destination of the trip;

(2) The total time and distance of the trip;

(3) An itemization of the total fare paid, if any; and

(4) The information required by section 46-G.

§46-I Transportation network company and transportation network company driver; insurance requirements. (a) A transportation network company and any transportation network company driver shall maintain a primary motor vehicle insurance policy that meets the requirements of this section.

(b) The primary motor vehicle insurance required under this section shall recognize that the driver is a transportation network company driver or otherwise uses a vehicle to transport riders for compensation and covers the driver:

(1) While the driver is logged on to the transportation network company's digital network; or

(2) While the driver is engaged in a prearranged ride.

(1) Primary liability coverage of not less than $100,000 per person, with an aggregate limit of $200,000 per accident, for all damages arising out of accidental harm sustained as a result of any one accident and arising out of ownership, maintenance, use, loading, or unloading of a motor vehicle;

(2) Primary liability coverage of not less than $50,000 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 ownership, maintenance, use, loading, or unloading of the insured vehicle;

(3) Uninsured and underinsured motorist coverages for the transportation network company driver and passengers, as set forth in section 431:10C-301, that shall be equal to the primary liability limits specified in paragraphs (1) and (2); provided that the stacking of uninsured and underinsured motorist coverages may be rejected in writing as set forth in section 431:10C-301;

(4) Personal injury protection coverage in an amount that meets the requirements of section 431:10C�103.5 and shall be equal to or greater than the coverage limits for the personal motor vehicle insurance maintained by the vehicle's owner and reported to the transportation network company; and

(5) Collision and comprehensive coverage limits for the transportation network company driver's vehicle that shall be equal to or greater than the coverage limits for the personal motor vehicle insurance maintained by the vehicle's owner and reported to the transportation network company.

(d) The requirements for the coverage specified in subsection (c) may be satisfied by any of the following:

(1) Motor vehicle insurance maintained by a transportation network company driver; provided that the transportation network company verifies that the policy is maintained by the transportation network company driver and is specifically written to cover the transportation network company driver's use of a vehicle in connection with a transportation network company's digital network;

(2) Motor vehicle insurance maintained by a transportation network company; or

(3) Any combination of paragraphs (1) and (2).

(e) The insurer providing insurance under this section shall have the duty to defend and indemnify the insured.

(f) Coverage under a transportation network company insurance policy shall not be dependent on a personal motor vehicle insurance policy first denying a claim nor shall a personal motor vehicle insurance policy, including a personal liability umbrella policy, be required to first deny a claim.

(g) In every instance where motor vehicle insurance maintained by a transportation network company driver to fulfill the insurance obligations of this section has lapsed or ceased to exist, the transportation network company shall provide the coverage required by this section beginning with the first dollar of a claim.

(h) Nothing in this section shall be construed to require a personal motor vehicle insurance policy to provide primary or excess coverage while the driver is logged on to the transportation network company's digital network or is engaged in a prearranged ride. While a driver is logged on to the transportation network company's digital network or is engaged in a prearranged ride, and notwithstanding any other law to the contrary, the following shall apply:

(1) The transportation network company driver's or the vehicle owner's personal motor vehicle insurance policy shall not be required to provide, nor shall it provide, any coverage to any person or entity unless the policy expressly provides for that coverage while the driver is logged on to the transportation network company's digital network or is engaged in a prearranged ride, with or without a separate charge, or the policy contains an amendment or endorsement to provide coverage for when the driver is logged on to the transportation network company's digital network or is engaged in a prearranged ride, for which a separately stated premium is charged; and

(2) The transportation network company driver's or the vehicle owner's personal motor vehicle insurance policy shall not have the duty to defend or indemnify for the driver's activities in connection with the transportation network company, unless the policy expressly provides otherwise for when the driver is logged on to the transportation network company's digital network or is engaged in a prearranged ride, with or without a separate charge, or the policy contains an amendment or endorsement to provide coverage for when the driver is logged on to the transportation network company's digital network or is engaged in a prearranged ride, for which a separately stated premium is charged.

(i) Notwithstanding any other law to the contrary, a personal motor vehicle insurer may, at its discretion, offer a motor vehicle liability insurance policy, or an amendment or endorsement to an existing policy that covers a private passenger vehicle, station wagon type vehicle, sport utility vehicle, or similar type of vehicle with a passenger capacity of eight persons or less, including the driver, while the driver is logged on to the transportation network company's digital network or is engaged in a prearranged ride if the policy expressly provides for coverage when the driver is logged on to the transportation network company's digital network or is engaged in a prearranged ride, with or without a separate charge, or the policy contains an amendment or an endorsement to provide coverage when the driver is logged on to the transportation network company's digital network or is engaged in a prearranged ride, for which a separately stated premium may be charged.

(j) In a claims coverage investigation, a transportation network company or its insurer shall cooperate with insurers that are involved in the claims coverage investigation to facilitate the exchange of information, including the provision of dates and times at which an accident occurred that involved a transportation network company driver and the precise times that the transportation network company driver logged on and off the transportation network company's digital network.

(k) A transportation network company driver of a transportation network company shall carry proof of insurance coverage as required by this section within the vehicle at all times when the vehicle is being used while the driver is logged on to the transportation network company's digital network or is engaged in a prearranged ride. In the event of an accident, a transportation network company driver shall provide this insurance coverage information to any other party involved in the accident, and to a police officer, upon request. The owner of the vehicle may display the motor vehicle insurance identification card or the proof of insurance card in electronic format on a mobile electronic device, as that term is defined in section 291C-137.

(l) Notwithstanding any other law affecting whether one or more policies of insurance that may apply with respect to an occurrence is primary or excess, this section shall determine the obligations under insurance policies issued to transportation network companies and, if applicable, transportation network company drivers using a personal vehicle while the drivers are logged on to the transportation network company's digital network or are engaged in prearranged rides.

§46-J Disclosures. A transportation network company shall disclose in writing to transportation network company drivers, before the drivers are allowed to accept a request for a prearranged ride on the transportation network company's digital network:

(1) The insurance coverage, including the types of coverage and limits for each coverage, that the transportation network company provides while the transportation network company driver uses a personal vehicle in connection with a transportation network company's digital network; and

(2) That the transportation network company driver's own motor vehicle insurance policy might not provide any coverage while the driver is logged on to the transportation network company's digital network and is available to receive transportation requests or is engaged in a prearranged ride, depending on the terms of the motor vehicle insurance policy.

§46-K Zero tolerance for drug or alcohol use. (a) In addition to any applicable county ordinances or rules, the transportation network company shall implement a zero tolerance policy on the use of drugs or alcohol while a transportation network company driver is providing a prearranged ride or is logged into the transportation network company's digital network, even if not providing a prearranged ride, and shall provide notice of the zero tolerance policy on its website, as well as procedures for reporting a complaint about a driver with whom a rider was matched and who the rider reasonably believes was under the influence of drugs or alcohol during the course of the trip.

(b) Upon receipt of a rider complaint alleging a violation of the zero tolerance policy, the transportation network company shall immediately suspend the transportation network company driver's access to the transportation network company's digital network and shall conduct an investigation into the reported incident. The suspension shall last for the duration of the investigation; provided that the investigation shall be conducted in a reasonably expeditious manner.

(c) The transportation network company shall maintain records relevant to a reported incident for a period of at least two years from the date that a rider complaint is received by the transportation network company.

§46-L Driver requirements. (a) Prior to permitting an individual to act as a transportation network company driver on its digital network, the transportation network company shall:

(1) Require the individual to submit an application to the transportation network company, including information regarding the individual's address, age, driver's license, driving history, motor vehicle registration, motor vehicle insurance, and other information required by the transportation network company;

(2) Conduct, or have a third party conduct, a local and national criminal background check for each applicant that shall include:

(A) Multi-state/Multi-Jurisdiction Criminal Locator or other similar commercial nationwide database with validation (primary source search); and

(B) National Sex Offender Registry database;

(3) Obtain and review a traffic violations bureau certified abstract for the individual;

(4) Require the individual to submit evidence of a physical examination to determine the individual's health and fitness to act as a transportation network company driver every four years;

(5) Require the individual to have at least one year of driving experience in Hawaii;

(6) Require the individual to submit fingerprints for analysis by a local law enforcement agency; and

(7) Require the individual to use only a hands free device when engaged in a prearranged ride.

(b) The transportation network company shall not permit an individual to act as a transportation network company driver on the transportation network company's digital network who:

(1) Has been found to have committed more than three traffic infractions, as defined in section 291D-2, in the prior three-year period, other than traffic infractions involving parking, standing, equipment, and pedestrian offenses;

(2) Has been convicted once in the prior three-year period for the offense of resisting an order to stop a motor vehicle, reckless driving, or driving with a suspended or revoked driver license;

(3) Has been convicted in the prior seven-year period of driving under the influence of drugs or alcohol;

(4) Has been convicted at any time of fraud, any sexual offense, any domestic violence offense, use of a motor vehicle to commit a felony, or a crime involving property damage, theft, stalking, acts of violence, or acts of terrorism;

(5) Is a match in the National Sex Offender Registry database;

(6) Does not possess a valid driver's license;

(7) Does not possess proof of registration or other authorization for the motor vehicle used to provide prearranged rides;

(8) Does not possess proof of motor vehicle insurance for the motor vehicles used to provide prearranged rides; or

(9) Is not at least twenty-one years of age.

(c) The requirements of this section shall be the minimum requirements that a transportation network company shall divulge to the counties and the department. Nothing in this section shall prohibit a transportation network company from adopting stricter driver requirements.

§46-M Vehicle safety. The transportation network company shall require that any motor vehicle that a transportation network company driver uses to provide prearranged rides meets the inspection requirements of section 286-26.

§46-N No street hails. A transportation network company driver shall only accept rides booked through a transportation network company's digital network and shall not solicit or accept street hails.

§46-O No cash trips. The transportation network company shall adopt a policy prohibiting solicitation or acceptance of cash payments from riders and notify transportation network company drivers of the policy. Transportation network company drivers shall not solicit or accept cash payments from riders. Any payment for prearranged rides shall be made only electronically, using the transportation network company's digital network.

§46-P No discrimination; accessibility. (a) The transportation network company shall adopt a policy of non-discrimination on the basis of destination, race, color, national origin, religious belief or affiliation, sex, disability, age, sexual orientation, or gender identity with respect to riders and potential riders and notify transportation network company drivers of the policy.

(b) A transportation network company shall not impose any additional charges for providing services to persons with physical disabilities because of those disabilities.

(c) A transportation network company shall provide riders an opportunity to indicate whether they require a wheelchair-accessible vehicle. If a transportation network company cannot arrange a wheelchair-accessible prearranged ride in any instance, the transportation network company shall direct the rider to an alternate provider of wheelchair-accessible service, if available.

(d) Transportation network company drivers shall comply with all applicable laws regarding non-discrimination against riders or potential riders on the basis of destination, race, color, national origin, religious belief or affiliation, sex, disability, age, sexual orientation, or gender identity.

(e) Transportation network company drivers shall comply with all applicable laws relating to accommodation of service animals.

§46-Q Records. (a) A transportation network company shall maintain:

(1) Electronic records of each prearranged ride provided by a transportation network company driver for at least one year from the date each prearranged ride was provided; and

(2) Transportation network company driver records at least until the one year anniversary of the date on which a transportation network company driver's activation on the transportation network company digital network has ended.

(b) A transportation network company shall make the records in subsection (a) available for inspection, upon request by a county or the department.

§46-R Personally identifiable information. (a) A transportation network company shall not disclose a rider's personally identifiable information to a third party unless:

(1) The rider consents;

(2) Disclosure, including disclosure to the counties or the department, is required by law; or

(3) Disclosure is required to protect or defend the terms of use of the service or to investigate violations of those terms.

(b) A transportation network company may share a rider's name or telephone number with the transportation network company driver providing a prearranged ride to the rider in order to facilitate correct identification of the rider by the transportation network company driver or to facilitate communication between the rider and the transportation network company driver.

§46-S Controlling authority. Notwithstanding any other provision of law, transportation network companies and transportation network company drivers shall be regulated by this part, any rules adopted pursuant to this part by the department pursuant to chapter 91, and any ordinances or rules adopted by the counties. Nothing in this part shall prevent a county from imposing stricter requirements on a transportation network company or a transportation network company driver."

SECTION 3. Section 46-16.5, Hawaii Revised Statutes, is amended to read as follows:

"§46-16.5 Public passenger vehicle regulation. (a) The legislature finds and declares the following:

(1) The orderly regulation of vehicular traffic on the streets and highways of Hawaii is essential to the welfare of the State and its people;

(2) Privately-operated public passenger vehicle service provides vital transportation links within the State. Public passenger vehicle service operated in the counties enables the State to provide the benefits of privately-operated, demand-responsive transportation services to its people and to persons who travel to the State for business or tourist purposes;

(3) The economic viability and stability of privately-operated public passenger vehicle service is consequently a matter of statewide importance;

(4) The policy of the State is to promote safe and reliable privately-operated public passenger vehicle service to provide the benefits of that service. In furtherance of this policy, the legislature recognizes and affirms that the regulation of privately-operated public passenger vehicle service is an essential governmental function;

(5) The policy of the State is to require that counties regulate privately-operated public passenger vehicle service and not subject a county or its officers to liability under the federal antitrust laws;

(6) The policy of the State is to further promote privately-operated public passenger vehicle service, including but not limited to, the picking up and discharge of passengers from various unrelated locations by taxicabs; and

(7) The policy of the State is to further promote privately-operated public passenger vehicle service by requiring jitney services not regulated by the counties to be under the jurisdiction of the public utilities commission. For the purposes of this paragraph, "jitney services" means public transportation services utilizing motor vehicles that have seating accommodations for six to twenty-five passengers, operate along specific routes during defined service hours, and levy a flat fare schedule.

(b) Any other law to the contrary notwithstanding, where not within the jurisdiction of the public utilities commission, every county may provide rules to protect the public health, safety, and welfare by licensing, controlling, and regulating, by ordinance or resolution, public passenger vehicle service operated within the jurisdiction of the county; provided that the counties shall promote the policies set forth in subsection (a)[.] and ensure the requirements in subsections (d), (e), (f), and (g) are met by all taxicab drivers and taxicab companies operating within the jurisdiction of the county.

(1) Entry into the business of providing public passenger vehicle service within the jurisdiction of that county.

(2) The rates charged for the provision of public passenger vehicle service.

(3) The establishment of stands to be employed by one or a limited number of providers of public passenger vehicle service.

(d) Prior to being authorized to operate within a county, each taxicab company operating within the jurisdiction of the county shall:

(1) Implement a zero tolerance policy on the use of drugs or alcohol by a taxicab driver, while the taxicab driver is providing a ride to a passenger for hire or searching for or soliciting a passenger for hire, and shall provide notice of the zero tolerance policy on its website, as well as procedures for reporting a complaint about a taxicab driver with whom a passenger for hire reasonably believes was under the influence of drugs or alcohol during the course of a ride;

(2) Conduct an investigation into a reported incident upon receipt of a passenger for hire complaint alleging a violation of the zero tolerance policy; and

(3) Maintain records relevant to a reported incident for a period of at least two years from the date that a passenger for hire complaint is received by the taxicab company.

(e) An individual shall not be authorized or hired to act as a taxicab driver for a taxicab company operating within the jurisdiction of the county until each taxicab company:

(1) Requires the individual to submit an application to the taxicab company, including information regarding the individual's address, age, driver's license, driving history, motor vehicle registration, motor vehicle insurance, and other information required by the taxicab company;

(2) Conducts, or has a third party conduct, a local and national criminal background check for each applicant that shall include:

(A) Multi-state/Multi-Jurisdiction Criminal Locator or other similar commercial nationwide database with validation (primary source search); and

(B) National Sex Offender Registry database;

(3) Obtains and reviews a traffic violations bureau certified abstract for the individual;

(4) Requires the individual to submit evidence of a physical examination to determine the individual's health and fitness to act as a taxicab driver every four years;

(5) Requires the individual to have at least one year of driving experience in Hawaii;

(6) Requires the individual to submit fingerprints for analysis by a local law enforcement agency; and

(7) Requires the individual to use only a hands free device when engaged in a ride for hire.

(f) An individual shall not be authorized to act as a taxicab driver for any taxicab company operating within the jurisdiction of the county if the individual:

(2) Has been convicted once in the prior three-year period for the offense of resisting an order to stop a motor vehicle, reckless driving, or driving with a suspended or revoked driver license;

(3) Has been convicted in the prior seven-year period of driving under the influence of drugs or alcohol;

(5) Is a match in the National Sex Offender Registry database;

(6) Does not possess a valid driver's license;

(7) Does not possess proof of registration or other authorization for the motor vehicle used to provide rides for hire;

(8) Does not possess proof of motor vehicle insurance for the motor vehicles used to provide rides for hire; or

(9) Is not at least twenty-one years of age.

(g) Prior to being authorized to operate within a county, each taxicab company operating within the jurisdiction of the county shall:

(1) Adopt a policy of non-discrimination on the basis of destination, race, color, national origin, religious belief or affiliation, sex, disability, age, sexual orientation, or gender identity with respect to passengers for hire and potential passengers for hire and notify taxicab drivers of the policy;

(2) Ensure no additional charges are imposed for providing services to persons with physical disabilities because of those disabilities;

(3) Provide potential passengers for hire an opportunity to indicate whether they require a wheelchair-accessible vehicle; provided that if a taxicab company cannot arrange a wheelchair-accessible ride in any instance, the taxicab company shall direct the potential passenger for hire to an alternate provider of wheelchair-accessible service, if available;

(4) Ensure taxicab drivers comply with all applicable laws regarding non-discrimination against passengers for hire and potential passengers for hire on the basis of destination, race, color, national origin, religious belief or affiliation, sex, disability, age, sexual orientation, or gender identity; and

(5) Ensure taxicab drivers comply with all applicable laws relating to accommodation of service animals.

(h) For purposes of subsections (d), (e), (f), and (g), the following definitions shall apply:

"Passenger for hire" means a person transported in a taxicab for consideration.

"Taxicab" means a vehicle, operated by a taxicab driver, which is used in the movement of passengers for hire on the public highways and which is directed to a destination by the passenger for hire or on the passenger for hire's behalf and which operates on call, on demand, or at a fixed stand.

"Taxicab company" means a person or entity which is authorized and regulated by the county to provide taxicab services, holds a license for one or more taxicabs, leases motor vehicles to drivers to be used or operated as taxicabs, or operates a central dispatch service for one or more taxicabs."

SECTION 4. Section 431:10C-107, Hawaii Revised Statutes, is amended to read as follows:

"§431:10C-107 Verification of insurance: motor vehicles. (a) Every insurer shall issue to its insureds a motor vehicle insurance identification card for each motor vehicle for which the basic motor vehicle insurance coverage is written. The identification card shall contain the following:

(1) Name of make and factory or serial number of the motor vehicle; provided that insurers of five or more motor vehicles which are under common registered ownership and used in the regular course of business shall not be required to indicate the name of make and the factory or serial number of each motor vehicle;

(2) Policy number;

(3) Names of the insured and the insurer; and

(4) Effective dates of coverage including the expiration date.

(b) The identification card shall be in the insured motor vehicle at all times and shall be exhibited to a law enforcement officer upon demand.

(c) The identification card shall be resistant to forgery by whatever means appropriate. The commissioner shall approve the construction, form, and design of the identification card to ensure that the card is forgery resistant.

(d) The commissioner shall issue a certificate of self-insurance periodically, as necessary, for use in each motor vehicle insured under section 431:10C-105.

(e) The identification card issued by an insurer shall not be issued for a period exceeding the period for which premiums have been paid or earned; provided that this subsection shall apply only to the first application of a person for a motor vehicle insurance policy and shall not apply to applications for commercial and fleet vehicles.

(f) For transportation network company drivers engaged in prearranged rides pursuant to part of chapter 46, the identification card required by this section may be provided in paper or electronic format. Acceptable electronic formats include display of electronic images on a cellular phone or any other type of portable electronic device."

SECTION 5. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2016.

THE SENATE	S.B. NO.	2777
TWENTY-EIGHTH LEGISLATURE, 2016		S.D. 1
STATE OF HAWAII