Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 207 entitled:

begs leave to report as follows:

The purpose of this measure is to eliminate the requirement that the registered owner of a vehicle being shipped interisland obtain the written consent of the vehicle's legal owner to the transportation as a condition of shipping.

Young Brothers, Limited, testified in support of this measure. The Hawaii Bankers Association testified that it did not oppose the measure. The Honolulu Police Department testified in opposition to the measure.

Currently, the law requires that the registered owner who is not the legal owner of a vehicle being shipped interisland present to the carrier the registered owner's current certificate of registration, identification, proof of motor vehicle insurance, and the written consent of the vehicle's legal owner, who is typically the financial institution that financed the sale of the vehicle. These requirements were established in order to prevent the unauthorized or fraudulent transporting of vehicles.

Your Committee finds that the written consent requirement imposes an undue burden on consumers and carriers, and notes that a legal owner's written consent is not required for vehicles being transported between states on the mainland or from the mainland to Hawaii.

Your Committee further finds that there are less onerous ways to prevent the illegal or fraudulent transportation of vehicles. In addition to requiring documentation as to registration, identification, and insurance, carriers may be required to record by physical inspection the vehicle's vehicle identification number (VIN), maintain a record of the transport, including a description of the vehicle, for a minimum of three years, and make these records available to law enforcement.

VIN recordation and recordkeeping are currently required for the transporting of used vehicles out of the State.

This measure balances the needs of carriers, consumers, and law enforcement by:

Your Committee concludes that the procedures established in this measure will result in the more efficient shipping of vehicles interisland without sacrificing property protection.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 207 and recommends that it pass Third Reading.