Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Transportation and Government Operations, to which was referred S.B. No. 694 entitled:

begs leave to report as follows:

The purpose of this measure is to provide an owner, lien holder, or other person with an interest in a derelict or abandoned vehicle, vessel, or aircraft with notice and the opportunity to request a post-custodial administrative hearing before the final disposition is made of the vehicle, vessel, or aircraft.

Your Committee received testimony in support of this measure from the Department of Transportation, Attorney General, and Board of Land and Natural Resources. Testimony in opposition was received from the Honolulu Department of Customer Services and Windward Ahupua`a Alliance.

In August 2004, the U.S. District Court, District of Hawaii, held that the Hawaii statute governing the disposition of derelict vehicles is unconstitutional on its face. The court found that the statute does not provide adequate procedural due process to owners of derelict vehicles that are ten model years old or older. The court ruled that an identifiable owner of a derelict vehicle is entitled to notice prior to disposition of the vehicle.

Your Committee finds that this measure satisfies procedural due process by requiring the State and county to provide notice and the opportunity for a hearing to known owners, lien holders, and other interested persons. This measure lessens the risk of the State and counties to liability for monetary damages and attorney's fees stemming from a violation of due process rights.

Your Committee has amended this measure by making technical, nonsubstantive amendments for clarity and style.

As affirmed by the record of votes of the members of your Committee on Transportation and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 694, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 694, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.