REPORT TITLE:
Motor Vehicles; Insurance


DESCRIPTION:
Requires impoundment of a vehicle by a private tow company when
driven without insurance.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.925        
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO MOTOR VEHICLES.
 


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

 1      SECTION 1.  Section 431:10C-117, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§431:10C-117  Penalties.
 
 4      (a)  (1) Any person subject to this article in the capacity
 
 5           of the operator, owner, or registrant of a motor
 
 6           vehicle operated in this State, or registered in this
 
 7           State, who violates any applicable provision of this
 
 8           article, shall be subject to citation for the violation
 
 9           by any county police department in a form and manner
 
10           approved by the traffic violations bureau of the
 
11           district court of the first circuit;
 
12      (2)  Notwithstanding any provision of the Hawaii Penal Code:
 
13           (A)  Each violation shall be deemed a separate offense
 
14                and shall be subject to a fine of not less than
 
15                $100 nor more than $5,000 which shall not be
 
16                suspended except as provided in subparagraph (B);
 
17                and
 
18           (B)  If the person is convicted of not having had a
 
19                motor vehicle insurance policy in effect at the
 

 
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 1                time the citation was issued, the fine shall be
 
 2                $500 for the first offense and a minimum of $1,500
 
 3                for each subsequent offense that occurs within a
 
 4                five-year period from any prior offense; provided
 
 5                that the judge:
 
 6                (i)  Shall have the discretion to suspend all or
 
 7                     any portion of the fine if the defendant
 
 8                     provides proof of having a current motor
 
 9                     vehicle insurance policy; provided further
 
10                     that upon the defendant's request, the judge
 
11                     may grant community service in lieu of the
 
12                     fine, of not less than seventy-five hours and
 
13                     not more than one hundred hours for the first
 
14                     offense, and not less than two hundred hours
 
15                     nor more than two hundred seventy-five hours
 
16                     for the second offense; and
 
17               (ii)  May grant community service in lieu of the
 
18                     fine for subsequent offenses at the judge's
 
19                     discretion;
 
20      (3)  In addition to the fine in paragraph (2), the court
 
21           shall either:
 
22           (A)  Suspend the driver's license of the driver or of
 
23                the registered owner for:
 

 
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 1                (i)  Three months for the first conviction; and
 
 2               (ii)  One year for any subsequent offense within a
 
 3                     five-year period from a previous offense;
 
 4                provided that the driver or the registered owner
 
 5                shall not be required to obtain proof of financial
 
 6                responsibility pursuant to section 287-20; or
 
 7           (B)  Require the driver or the registered owner to keep
 
 8                a nonrefundable motor vehicle insurance policy in
 
 9                force for six months;
 
10      (4)  (a) Upon issuing the citation for driving without a
 
11           valid no-fault insurance policy, the officer shall
 
12           impound the vehicle with a private tow company.
 
13           (b)  An impounding entity shall release a vehicle to
 
14           the registered owner or his or her agent prior to the
 
15           end of 30 days impoundment under any of the following
 
16           circumstances:
 
17                (i)  When the vehicle is a stolen vehicle.
 
18           For purposes of this subsection, owner's agent may be
 
19           proved by presentation of a notarized letter from the
 
20           owner to the impounding entity.
 
21           (c)  No vehicle shall be released pursuant to this
 
22                subsection except upon order of a court.
 
23           (d)  The registered owner or his or her agent is
 

 
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 1                responsible for all towing and storage charges
 
 2                related to the impoundment, and any administrative
 
 3                charges incurred by the State necessary to carry
 
 4                out this subsection.
 
 5           (e)  The vehicle shall not be released, even upon order
 
 6                of the court unless all fees are paid.
 
 7           (f)  The vehicle may be released to the legal owner or
 
 8                the owner's agent or any individual or entity
 
 9                having a secuirty interest in the impounded
 
10                vehicle upon presentation of a photocopy of a
 
11                financing statement evidencing a secuirty interest
 
12                in the vehicle and upon payment of all applicable
 
13                fees and charges then owing.
 
14      [(4)] (5) Any person cited under this section shall have an
 
15 opportunity to present a good faith defense, including but not
 
16 limited to lack of knowledge or proof of insurance.  The general
 
17 penalty provision of this section shall not apply to:
 
18           (A)  Any operator of a motor vehicle owned by another
 
19                person if the operator's own insurance covers such
 
20                driving;
 
21           (B)  Any operator of a motor vehicle owned by that
 
22                person's employer during the normal scope of that
 
23                person's employment; or
 

 
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 1           (C)  Any operator of a borrowed motor vehicle if the
 
 2                operator holds a reasonable belief that the
 
 3                subject vehicle is insured; and
 
 4 [(5)](6)  In the case of multiple convictions for driving without
 
 5           a valid motor vehicle insurance policy within a five-
 
 6           year period from any prior offense, the court, in
 
 7           addition to any other penalty, shall impose the
 
 8           following penalties:
 
 9           (A)  Imprisonment of not more than thirty days;
 
10           (B)  Suspension or revocation of the motor vehicle
 
11                registration plates of the vehicle involved;
 
12           [(C) Impoundment, or impoundment and sale, of the motor
 
13                vehicle for the costs of storage and other charges
 
14                incident to seizure of the vehicle, or any other
 
15                cost involved pursuant to section 431:10C-301; or
 
16           (D)] (C)  Any combination of those penalties.
 
17      (b)  Any person, in the capacity of a licensed or unlicensed
 
18 motor vehicle insurer, self-insurer, general agent, subagent,
 
19 solicitor, or other representative, who violates any provision of
 
20 this article shall be assessed a civil penalty not to exceed
 
21 $5,000 for each violation.
 
22      (c)  Any person, in the capacity of a licensed or unlicensed
 
23 motor vehicle insurer, self-insurer, general agent, subagent,
 

 
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 1 solicitor, or other representative, who knowingly violates any
 
 2 provision of this article shall be assessed a civil penalty of
 
 3 not less than $3,000 and not to exceed $10,000 for each
 
 4 violation.
 
 5      (d)  (1)  Violations of subsections (b) and (c) shall be
 
 6           subject to the construction that each repetition of
 
 7           such act shall constitute a separate violation; and
 
 8      (2)  The imposition of any civil penalty under subsection
 
 9           (a), (b), or (c) shall be in addition to, and shall not
 
10           in any way limit or affect the application of, any
 
11           other civil or criminal penalty, or public safety
 
12           condition or requirement, provided by law." 
 
13      SECTION 2.  Statutory material to be repealed is bracketed.
 
14 New statutory material is underscored.
 
15      SECTION 3.  This Act shall take effect upon its approval.
 
16 
 
17                           INTRODUCED BY:_________________________