Bill Text: HI HB1808 | 2020 | Regular Session | Amended

Hawaii House Bill 1808 (Prior Session Legislation)

Bill Title: Relating To Motor Vehicles.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-02-14 - Report adopted. referred to the committee(s) on FIN as amended in HD 2 with none voting aye with reservations; none voting no (0) and Representative(s) Holt, Takayama excused (2). [HB1808 Detail]

Download: Hawaii-2020-HB1808-Amended.html

HOUSE OF REPRESENTATIVES	H.B. NO.	1808
THIRTIETH LEGISLATURE, 2020		H.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO MOTOR VEHICLES.

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

SECTION 1. The legislature finds that abandoned vehicles are unnecessarily accumulating at salvage facilities as a result of owners filing claims with insurance companies and then abandoning the motor vehicle without completing a title transfer. The legislature further finds that in some instances the insurance claim has been paid to the owner, yet the title has not been transferred and the motor vehicle is abandoned at the salvage facilities without any process available to the salvage facility to transfer title to the vehicle. Without the means to transfer title to these abandoned vehicles, the vehicles remain at the salvage facilities depreciating in value and occupying much needed space.

The purpose of this Act is to allow the county directors of finance, under specified circumstances, to issue certificates of ownership and salvage certificates to facilitate the disposition of abandoned vehicles in the State.

SECTION 2. Section 286-48, Hawaii Revised Statutes, is amended to read as follows:

"§286-48 Certificates of ownership [of]; salvage certificates; insurance; dealers; salvaged motor vehicles. (a) Whenever a motor vehicle subject to registration under this part is sold as salvage or conveyed to an insurance company, in the ordinary course of business or as the result of a total loss insurance settlement where the insurance company receives the certificates of registration and ownership, the purchaser or, if an insurance company its authorized agent, shall within ten days from the purchase, or the settlement of the insurance loss, forward the motor vehicle's endorsed certificate of ownership or other evidence of title, certificate of registration, license plates, and an application for a salvage certificate as provided for in section 286-44.5, to the director of finance. Upon receipt of the certificate of ownership or other evidence of title, certificate of registration, license plates, and application for a salvage certificate, the director of finance shall issue a salvage certificate in the name of the purchaser or insurance company.

(b) If the certificate of registration or one or both license plates are lost, an affidavit, duly notarized and signed by the party responsible for the compliance of [~~this section~~] subsection (a) stating that the party has no knowledge of the location of the certificate of registration or the license plates, shall be filed with the director of finance of the county having jurisdiction over the motor vehicle. In any event, the certificate of ownership or other evidence of title shall be forwarded to the director of finance. [~~(b)~~] Upon receipt of the certificate of [~~ownership, certificate of registration, license plates,~~] ownership or other evidence of title, the prescribed affidavit, and application for a salvage certificate, the director of finance shall issue a salvage certificate in the name of the purchaser or insurance company.

(c) In cases involving a claim with an insurance company, if the legal or registered owner of the motor vehicle fails to provide or assign the motor vehicle's endorsed certificate of ownership to the insurance company within thirty days after the payment of the claim, the insurance company may, at any time thereafter, forward an application for a certificate of ownership or a salvage certificate to the director of finance of the county having jurisdiction over the motor vehicle. The director of finance shall issue a certificate of ownership or salvage certificate to the insurance company for the vehicle upon receipt of:

(1) The application;

(2) Proof of payment of the claim, which shall be:

(A) In the case of payment by check, either a copy of the front and back of the endorsed check or evidence that the check has cleared the account of the payor; or

(B) In the case of payment by electronic transfer, evidence that the payment was charged to the account of the payor;

(3) Proof of notice sent to the legal and registered owner of the motor vehicle by certified mail, by other commercially available service, or by electronic means requesting the properly endorsed certificate of ownership or any documentation necessary to effect the proper assignment of the certificate of ownership for the motor vehicle; and

(4) Proof that the notice, pursuant to paragraph (3), was received or returned as undeliverable, if applicable.

The issuance of the certificate of ownership or salvage certificate by the director of finance, pursuant to this subsection, shall extinguish all liens against the motor vehicle.

The insurance company shall indemnify and hold harmless the director of finance from all civil liability resulting from the issuance of the certificate of ownership or salvage certificate to the insurance company pursuant to this subsection, except if the civil liability is based on the gross negligence or wilful misconduct of the director of finance or the director's agent.

[~~(c)~~] (d) Upon resale of the salvage vehicle, the seller or, if the seller is an insurance company, its authorized agent shall transfer the salvage certificate and issue a bill of sale to the purchaser which shall be on a form prescribed by the director of finance. The seller shall notify the purchaser, in writing, of the requirements of this chapter regarding the recertification of salvage vehicles. The seller shall sell the salvage vehicle only to a person licensed pursuant to chapter 437B, sections 289-4, or 445-232, or any person who executes an affidavit which states whether or not the salvage vehicle would be used to construct a rebuilt vehicle as defined in section 286-2 and that if the salvage vehicle is to be rebuilt, the purchaser will register the rebuilt vehicle as required by this chapter.

[~~(d)~~] (e) In the event the salvage vehicle is rebuilt so as to be capable of again operating on the highways of this State, the motor vehicle shall not be licensed for such operation, nor shall the ownership thereof be transferred until there is submitted to the director of finance:

(1) The prescribed bill of sale;

(2) An appropriate application for registration of the rebuilt or restored motor vehicle along with the salvage certificate and a certificate of inspection signed by the registered or certified motor vehicle repair dealer who is bonded as required by section 437B-26, and who rebuilt the vehicle, attesting that the original recognized vehicle manufacturer's established repair procedures or specifications and allowable tolerances for the particular model and year were utilized and adhered to; and

(3) Any other document and fee required by the director of finance.

The counties may, by ordinance, establish the fee to be charged for the inspection of rebuilt motor vehicles.

[~~(e)~~] (f) Whenever a certificate of registration and certificate of ownership is issued for a motor vehicle with respect to which a salvage certificate has been previously issued, the new certificates shall conform to the requirements of section 286-47 and:

(1) Bear the words "Rebuilt Vehicle"; and

(2) Appear in such a manner as to distinguish them from the certificate of registration and certificate of ownership for motor vehicles other than rebuilt or restored motor vehicles.

[~~(f)~~] (g) In the event a total loss insurance settlement between an insurance company and its insured or a claimant for property damage caused by its insured results in the retention of the salvage vehicle by the insured or claimant, as the case may be, then in such event, the insurance company or its authorized agent shall notify, within ten days from the date of settlement, the director of finance of such retention by its insured or claimant, as the case may be, and shall notify its insured, or claimant as the case may be, in writing, of the requirements of this chapter regarding the recertification of salvage vehicles. The notification shall be on a form prescribed by the director of finance.

(h) In the event an insurance company requests a licensed dealer, whose primary business is to auction insurance salvage motor vehicles, to take possession of a motor vehicle that is the subject of an insurance claim and the insurance company subsequently fails to take ownership of the motor vehicle, the insurance company may direct the dealer to release the motor vehicle to the legal or registered owner. The dealer shall send at least two notices to the legal and registered owner of the motor vehicle, at the address shown in the records of the county motor vehicle licensing division. The initial notice shall inform the legal and registered owner that the motor vehicle is available for retrieval, the vehicle must be retrieved within thirty days after the second notice, and the owner shall pay any applicable charges owed to the dealer prior to the vehicle being retrieved. The notices required under this subsection shall be sent by certified mail or another courier that provides proof of delivery to the addresses shown in the records of the motor vehicle licensing division. In the event the legal or registered owner of the motor vehicle fails to retrieve the motor vehicle pursuant to this subsection, the motor vehicle shall be deemed abandoned and the vehicle's certificate of ownership shall be deemed assigned to the dealer. The dealer, without surrendering the certificate of ownership, may request the director of finance to send the dealer a certificate of ownership or salvage certificate for the motor vehicle in the name of the dealer; provided that the request shall include an affidavit by the dealer that the dealer provided notice to the legal and registered owners pursuant to this subsection. Notwithstanding any outstanding liens against the motor vehicle, the director of finance shall send the dealer a certificate of ownership or salvage certificate, as applicable, for the motor vehicle in the name of the dealer. The issuance of the certificate of title or salvage certificate by the director of finance shall extinguish all existing liens against the motor vehicle."

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2050.

Report Title:

Salvaged Motor Vehicles; Salvage Certificates; Insurance

Description:

Addresses the disposition of salvaged motor vehicles by authorizing the county directors of finance to issue certificates of ownership and salvage certificate to expedite the disposal of the vehicles under specified circumstances. Effective 7/1/2050. (HD2)

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