REPORT TITLE:
Motor Vehicle Towing


DESCRIPTION:
Requires towing businesses to have insurance coverage for towed
motor vehicles during towing and storage; to have a $15,000 bond
covering items in the towed vehicle that are lost, damaged, and
stolen items; to properly identify their towing vehicles; repeals
drop-dead provision of Act 138, SLH 1998.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           973
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO MOTOR VEHICLE TOWING. 


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

 1      SECTION 1.  Chapter 290, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "§290-     Towing businesses; insurance, bond, and
 
 5 identification requirements.  (a)  No person shall operate as a
 
 6 towing business at any time unless the motor vehicles used for
 
 7 towing are insured in compliance with chapter 431:10C and the
 
 8 towing company has insurance that covers all damages that may
 
 9 occur to the towed motor vehicle while being towed and stored by
 
10 the towing business.
 
11      (b)  Every person engaged in the business of towing motor
 
12 vehicles shall deposit with the director of commerce and consumer
 
13 affairs, prior to doing business, a bond in the amount of
 
14 $15,000, executed by the president of the towing business as
 
15 principal and a surety company authorized to do business in the
 
16 State as a surety.  The bond shall be conditioned upon the
 
17 faithful compliance of the towing business with this chapter.
 
18 The bond shall run to the State for the benefit of any person
 
19 who's possessions in any towed vehicle are lost, damaged, or
 

 
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                                     S.B. NO.           973
                                                        
                                                        

 
 1 stolen; provided that the aggregate liability of the surety, in
 
 2 no event, shall exceed the sum of the bond.  The surety may
 
 3 cancel the bond by giving sixty days' notice in writing to the
 
 4 director of commerce and consumer affairs and shall thereafter be
 
 5 relieved of any liability for any breach of condition occurring
 
 6 after the effective date of cancellation.
 
 7      (c)  All vehicles used for towing motor vehicles in
 
 8 furtherance of a towing business shall have permanently affixed
 
 9 on each door of the towing vehicle a sign with the name, address,
 
10 and telephone number of the towing business.  The letters and
 
11 numbers used in the sign shall be no less than two inches in
 
12 height."
 
13      SECTION 2.  Act 138, Session Laws of Hawaii 1998, is amended
 
14 by amending section 3 to read as follows:
 
15      "SECTION 3.  This Act shall take effect upon its approval;
 
16 provided that the amendment set forth in Section 1 shall take
 
17 effect on September 1, 1998[, and shall be repealed on July 1,
 
18 2000]."
 
19      SECTION 3.  Statutory material to be repealed is bracketed.
 
20 New statutory material is underscored.
 
21      SECTION 4.  This Act shall take effect upon its approval.
 
22 
 
23                           INTRODUCED BY:  _______________________