HB1386.DOC

SECTION 1. Under section 286-271, Hawaii Revised Statutes, a person shipping a vehicle interisland must present a current certificate of registration, proof of motor vehicle insurance, and identification. If the shipper is neither the legal nor registered owner of the vehicle being shipped, the shipper must also present a notarized letter from the legal or registered owner authorizing the shipment.

Act 66, enacted by the legislature in 2008 under H.B. No. 2953, exempts a person driving other than the person's own vehicle when traveling on an interisland ferry, from the requirements of section 286-271, Hawaii Revised Statutes, including the requirement of presenting a notarized letter from the vehicle's registered or legal owner. In Conference Committee Report No. 59 on H.B. No. 2953, S.D. 1, C.D. 1, the Committee on Conference found that:

The requirements for the inter-island shipping of motor vehicles were put in place long before a car-carrying, inter-island ferry service was ever envisioned for Hawaii and was meant to primarily serve as a deterrent to the shipping of stolen vehicles. However, procedures that include identifying a vehicle through its vehicle identification number, make, model, year, and color, along with identification requirements for the driver and all passengers in the vehicle, serve as a sufficient deterrent for the shipment of stolen vehicles on the current inter-island ferry service.

The same safeguards against the shipment of stolen vehicles on an interisland ferry are in place for shipment of vehicles on interisland barges. In conformance with current law, carriers must record the vehicle identification number (VIN) and a description of each vehicle it ships and must require certificates of registration or ownership, as applicable, proof of insurance, and proof of identification from the shipper and the consignee. The carrier must also retain such information for not less than three years.

The legislature finds that sufficient safeguards against shipment of stolen vehicles are already available and in place under the law, without retaining the requirement of notarized authorization from a registered or legal owner for vehicle shipment by a third party, regardless of the mode of water transportation—that is, whether by interisland ferry or barge.

The purpose of this Act is to standardize the documents required for interisland shipping of vehicles regardless of the mode of water transportation.

SECTION 2. Section 286-271, Hawaii Revised Statutes, is amended as follows:

1. By amending subsections (a) and (b) to read:

"(a) Except as provided in subsection (b), a legal owner of a vehicle shall not ship that vehicle interisland in this [~~State~~] state unless the legal owner first presents to the carrier the legal owner's current certificate of registration showing that the person is the registered owner of the vehicle, identification, and proof of motor vehicle insurance. If the registered owner of the vehicle is not the legal owner of the vehicle, the registered owner shall present to the carrier, the registered owner's current certificate of registration, identification, and proof of motor vehicle insurance. Duplicate copies of the current registration and proof of motor vehicle insurance shall be acceptable for commercial vehicles as defined in section 286-47(3)(C). An authorized agent of the legal or registered owner may ship the vehicle by presenting the current certificate of registration, identification, and proof of motor vehicle insurance[~~, and a notarized letter from the registered or legal owner authorizing the shipment~~]. For an unrecorded owner pending a lawful transfer, a certificate of ownership signed by the previous owner may be submitted for the current certificate of registration for a vehicle purchased within thirty days of shipping. A facsimile of proof of motor vehicle insurance from an insurance company may be accepted for a vehicle purchased within thirty days of shipping. Presentation of proof of motor vehicle insurance shall not be required for:

(1) Unlicensed propelled vehicles that are not intended for on-road use;

(2) New unregistered vehicles shipped with a bill of lading; or

(3) Vehicles owned by the federal, state, or county government.

(b) A legal owner of a damaged vehicle shall not ship that vehicle interisland in this [~~State~~] state for repair, disposal, or salvage unless the legal owner first presents to the carrier the legal owner's current certificate of registration showing that the person is the registered owner of the vehicle or a car dealer's license. For an unrecorded owner pending a lawful transfer, a certificate of ownership signed by the previous owner may be acceptable for a vehicle purchased within thirty days of shipping. A registered owner of the vehicle who is not the legal owner of the vehicle must present a current certificate of registration."

2. By amending subsection (e) to read:

"(e) This section shall not apply to:

(1) Any motor vehicle rental company as defined in section 431:9A-141 that periodically ships in quantities of ten vehicles or more; or

(2) Licensed dealers who periodically ship in quantities of ten vehicles or more, or whose primary business is the auction of insurance salvage vehicles[~~; or~~

~~(3)~~ Drivers of vehicles traveling on an interisland ferry; provided that such drivers present identification of the driver, a current certificate of registration for the vehicle, and proof of motor vehicle insurance. The interisland ferry carrier shall keep a record of transporting the vehicle by recording the vehicle identification number and retaining the information for three years after the date of travel]."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1386
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII