STAND. COM. REP. NO. 467

Honolulu, Hawaii

RE:    S.B. No. 520

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 520 entitled:

"A BILL FOR AN ACT RELATING TO THE MOTOR VEHICLE INDUSTRY LICENSING ACT,"

begs leave to report as follows:

     The purpose of this measure is to specify the types of documents and other evidence that are sufficient to provide a used car dealer with indicia of ownership or right to possession of a used motor vehicle.

     Your Committee received testimony in support of this measure from Hawaii Automobile Dealers Association and First Hawaiian Bank.  Testimony in opposition to this measure was received from the Honolulu Police Department, Hawaii Insurers Council, and one private citizen.  Testimony with comments on this measure was received from the Motor Vehicle Industry Licensing Board, State Farm Insurance, and one private citizen.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that under the current law, it is sufficient that a motor vehicle dealer present proof of possession of a legal ownership certificate for a vehicle that is sold or offered for sale.  The current law does not require actual possession of the ownership certificate, nor does it specify what proof of possession is sufficient. 

     Your Committee has amended this measure by:

     (1)  Deleting language relating to "reasonable indicia of ownership or right of possession" and examples of indicia of ownership;

     (2)  Adding provisions to distinguish between documentary requirements for new and used motor vehicles;

     (3)  Adding a provision to specify that a dealer shall possess evidence that all liens on a used motor vehicle have been satisfied; and

     (4)  Making technical, nonsubstantive changes for the purposes of clarity and accuracy. 

     Your Committee received testimony from the Motor Vehicle Industry Licensing Board and other parties that the stakeholders on this measure have agreed on amended language to clarify this measure and to provide more protection for consumers.  Your Committee finds that this measure, as amended, balances consumers' interest in ensuring clear title to a motor vehicle and motor vehicle dealers' interest in efficiently selling their stock.

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 520, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 520, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

____________________________

ROSALYN H. BAKER, Chair