SB1020

SECTION 1. Under existing law, the highway beautification and disposal of abandoned or derelict vehicles revolving fund provides a dedicated source of revenue for the counties to use accordingly, including costs incurred in the disposition of abandoned and derelict vehicles. A county negotiates with a private vendor to provide tow services of abandoned and derelict vehicles. The legislature finds that tow companies are inadequately compensated for storage fees.

The current practice in the city and county of Honolulu is for the city to request a tow of vehicles from public streets that are declared abandoned or derelict, those vehicles without a current registration tag or safety check. The tow company stores the vehicle until the county notifies the last registered owner who has ten days to respond. If the owner does not respond, the county auctions the vehicle which could take up to three months or more to auction. Meanwhile, no storage fee is paid by the county unless the vehicle is successfully auctioned. Most times there are no bidders for these abandoned and derelict vehicles. This results in a considerable loss for the tow company, which must provide space to store the vehicle until the vehicle is auctioned.

The purpose of this Act is to:

(1) Allow the counties to use moneys in the highway beautification and disposal of abandoned or derelict vehicles revolving fund to negotiate storage fees with a tow company;

(2) Increase the motor vehicle registration additional fee, other than for U-drive vehicles, to be deposited into the highway beautification and disposal of abandoned or derelict vehicles revolving fund; and

(3) Streamline the required time for giving notice to the owner and for recovery of the vehicle.

SECTION 2. Section 286-51, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) This part shall be administered by the director of finance in conjunction with the requirements of sections 249-1 to 249-13 and shall entail no additional expense or charge to the person registering the ownership of a motor vehicle other than as provided by this section or by other laws; provided that for each new certificate of ownership issued by the director of finance under section 286-52, the director of finance may charge a fee which shall be deposited in the general fund. The fees charged to issue a new certificate of ownership shall be established by the county's legislative body.

Notwithstanding any other law to the contrary, an additional fee of not more than $1 for each certificate of registration for a U-drive motor vehicle and $2 for each certificate of registration for all other motor vehicles may be established by ordinance and collected annually by the director of finance of each county, to be used and administered by each county:

(1) For the purpose of beautification and other related activities of highways under the ownership, control, and jurisdiction of each county; and

(2) To defray the additional cost in the disposition and other related activities of abandoned or derelict vehicles as prescribed in chapter 290[.], including but not limited to, storage fees as negotiated between a county and a vendor.

The $2 fee established pursuant to this subsection for certificates of registration for motor vehicles other than U‑drive motor vehicles may be increased by ordinance up to a maximum of [~~$5;~~] $ ; provided that all amounts received from any fee increase over $2 shall be expended only for the purposes of paragraph (2). The moneys so assessed and collected shall be placed in a revolving fund entitled, "the highway beautification and disposal of abandoned or derelict vehicles revolving fund"."

SECTION 3. Section 290-11, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

"(b) Towing companies engaged by the owner, occupant, or person in charge of the property shall:

(1) Charge not more than $55 for a tow, or $65 for a tow using a dolly, plus a mileage charge of $6.50 per mile towed and $20 per day or fraction thereof for storage for the first seven days and $15 per day thereafter. When the tow occurs between the hours of six o'clock p.m. and six o'clock a.m., from Monday through Thursday and from Friday six o'clock p.m. to Monday six o'clock a.m., the towing company shall be entitled to an overtime charge of $15. If the vehicle is in the process of being hooked up to the tow truck and the owner appears on the scene before the vehicle has been moved by the tow truck, the towing company shall unhook the vehicle upon payment by the owner of an "unhooking" fee of not more than $50. If the owner is unwilling or unable to pay the "unhooking" fee, the vehicle may be towed. In the case of a difficult hookup, meaning an above or below ground hookup in a multilevel facility, a towing surcharge of $30 shall be applicable;

(2) Determine the name of the legal owner and the registered owner of the vehicle from the department of transportation or the county department of finance. The legal owner and the registered owner shall be notified in writing at the address on record with the department of transportation or with the county department of finance by registered or certified mail of the location of the vehicle, together with a description of the vehicle, within a reasonable period not to exceed [~~twenty~~] fifteen days following the tow. The notice shall state:

(A) The maximum towing charges and fees allowed by law;

(B) The telephone number of the consumer information service of the department of commerce and consumer affairs; and

(C) That if the vehicle is not recovered within [~~thirty~~] ten days after the mailing of the notice, the vehicle shall be deemed abandoned and will be sold or disposed of as junk.

Where the owners have not been so notified, then the owner may recover the owner's car from the towing company without paying tow or storage fees; provided that the notice need not be sent to a legal or registered owner or any person with an unrecorded interest in the vehicle whose name or address cannot be determined. Absent evidence to the contrary, a notice shall be deemed received by the legal or registered owner five days after the mailing. A person, including but not limited to the owner's or driver's insurer, who has been charged in excess of the charges permitted under this section may sue for damages sustained and, if the judgment is for the plaintiff, the court shall award the plaintiff a sum not to exceed the amount of the damages and reasonable attorney's fees together with the cost of suit;

(3) Provide, when a vehicle is recovered by the owner before written notice is sent by registered or certified mail, the owner with a receipt stating:

(A) The maximum towing charges and fees allowed by law; and

(B) The telephone number of the consumer information service of the department of commerce and consumer affairs; and

(4) Accommodate payment by the owner for charges under paragraph (1) by cash and by either credit card or automated teller machine located on the premises.

(c) When a vehicle is not recovered within [~~thirty~~] ten days after the mailing of the notice, it shall be deemed abandoned and the owner of the towing company, or the owner of the towing company's authorized representative, after one public advertisement in a newspaper of general circulation in the State, may negotiate a sale of the vehicle or dispose of it as junk."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	1020
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII