HOUSE OF REPRESENTATIVES	H.B. NO.	2146
TWENTY-SEVENTH LEGISLATURE, 2014
STATE OF HAWAII

A BILL FOR AN ACT

relating to motor vehicles.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 286-48, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  Whenever a motor vehicle subject to registration under this part is sold as salvage or conveyed to an insurance company, in the ordinary course of business or as the result of a total loss insurance settlement where the insurance company receives the certificates of registration and ownership, the purchaser or, if an insurance company its authorized agent, shall within ten days from the purchase, or the settlement of the insurance loss, forward the motor vehicle's endorsed certificate of ownership or other evidence of title, certificate of registration, license plates, and an application for a salvage certificate as provided for in section 286-44.5, to the director of finance[.]; provided that:

(1)  If the certificate of registration or one or both license plates are lost, an affidavit, duly notarized and signed by the party responsible for the compliance of this section stating that the party has no knowledge of the location of the certificate of registration or the license plates, shall be filed with the director of finance of the county having jurisdiction over the vehicle.  In any event the certificate of ownership or other evidence of title shall be forwarded to the director of finance[.]; and

(2) If the owner of the motor vehicle fails to provide or assign the motor vehicle’s endorsed certificate of ownership to the insurance company within thirty days after the payment or settlement of the claim pursuant to this section, the insurance company shall, within thirty days after the expiration of that thirty-day period, forward an application for a salvage certificate to the director of finance.  The director shall issue a salvage certificate to the insurance company for the vehicle upon receipt of:

(A) The application;

(B) Proof of payment of the claim;

(C) Proof of notice sent to the registered owner by certified mail requesting the properly endorsed certificate of ownership or any documentation necessary to effect the proper assignment of the certificate of ownership for the motor vehicle; and

(D) Proof that the notice was received or returned as undeliverable.

     (b)  Upon receipt of the certificate of ownership, certificate of registration, license plates, and application for a salvage certificate, the director of finance shall issue a salvage certificate in the name of the purchaser or insurance company.  The director’s issuance of the salvage certificate shall extinguish all existing liens against the vehicle.  The insurance company shall relieve the director of finance of all liability, civil or criminal, resulting from the issuance of the salvage certificate to the insurance company."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect sixty days after its approval.

INTRODUCED BY:

_____________________________

Report Title:

Salvaged Motor Vehicles; Salvage Certificate; Insurance

Description:

Adds provisions to allow for a salvage application to be submitted without the certificate of ownership.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.