S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 1397 entitled:

begs leave to report as follows:

The purpose of this measure is to increase the time period within which the transfer of ownership of a motor vehicle with liens must be forwarded to the director of finance.

Your Committee received testimony in favor of this measure from the Hawaii Automobile Dealers' Association and Department of Customer Service of the City and County of Honolulu.

Your Committee finds the additional time provided by this measure is appropriate. Currently, it is very time consuming to transfer an out-of-state vehicle with a lien held by an out-of-state entity within thirty days resulting in unavoidable penalties being assessed. Your Committee further finds that these delays are not caused by negligence or dilatory action.

Your Committee has amended this measure by deleting the proposed amendment and providing that the sixty-day recordation period only applies if the recorded lienholder does not have an office in the State.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1397, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1397, S.D. 1, and be placed on the calendar for Third Reading.