HOUSE OF REPRESENTATIVES	H.B. NO.	1151
TWENTY-EIGHTH LEGISLATURE, 2015
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.  [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.

(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.

(b)  If the certificate of registration or one or both license plates are lost, an affidavit, duly notarized and signed by the party responsible for compliance with 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.  Upon receipt of the certificate of ownership or other evidence of title, the prescribed affidavit, and application for a salvage certificate, the director of finance shall issue a salvage certificate in the name of the purchaser or insurance company.

(c)  If the legal or registered 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 of the claim, the insurance company may, at any time thereafter, 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, which shall be:

(i) In the case of payment by check, either a copy of the front and back of the endorsed check or evidence that the check has cleared the account of the payor; or

(ii) In the case of payment by electronic transfer, evidence that the payment was charged to the account of the payor;

(C) Proof of notice sent to the legal or registered owner by certified mail or other commercially available service 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.

The director's issuance of the salvage certificate pursuant to this subsection 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 a salvage certificate to the insurance company pursuant to this subsection.

    [(c)] (d)  Upon resale of the salvage vehicle, the seller or, if the seller is an insurance company, its authorized agent shall transfer the salvage certificate and issue a bill of sale to the purchaser which shall be on a form prescribed by the director of finance.  The seller shall notify the purchaser, in writing, of the requirements of this chapter regarding the recertification of salvage vehicles.  The seller shall sell the salvage vehicle only to a person licensed pursuant to chapter 437B, sections 289-4, or 445-232, or any person who executes an affidavit which states whether or not the salvage vehicle would be used to construct a rebuilt vehicle as defined in section 286-2 and that if the salvage vehicle is to be rebuilt, the purchaser will register the rebuilt vehicle as required by this chapter.

    [(d)] (e)  In the event the salvage vehicle is rebuilt so as to be capable of again operating on the highways of this State, the motor vehicle shall not be licensed for such operation, nor shall the ownership thereof be transferred until there is submitted to the director of finance:

     (1)  The prescribed bill of sale;

     (2)  An appropriate application for registration of the rebuilt or restored motor vehicle along with the salvage certificate and a certificate of inspection signed by the registered or certified motor vehicle repair dealer who is bonded as required by section 437B-26, and who rebuilt the vehicle, attesting that the original recognized vehicle manufacturer's established repair procedures or specifications and allowable tolerances for the particular model and year were utilized and adhered to; and

     (3)  Any other document and fee required by the director of finance.

The counties may, by ordinance, establish the fee to be charged for the inspection of rebuilt motor vehicles.

    [(e)] (f)  Whenever a certificate of registration and certificate of ownership is issued for a motor vehicle with respect to which a salvage certificate has been previously issued, the new certificates shall conform to the requirements of section 286-47 and:

     (1)  Bear the words "Rebuilt Vehicle"; and

     (2)  Appear in such a manner as to distinguish them from the certificate of registration and certificate of ownership for motor vehicles other than rebuilt or restored motor vehicles.

    [(f)] (g)  In the event a total loss insurance settlement between an insurance company and its insured or a claimant for property damage caused by its insured results in the retention of the salvage vehicle by the insured or claimant, as the case may be, then in such event, the insurance company or its authorized agent shall notify, within ten days from the date of settlement, the director of finance of such retention by its insured or claimant, as the case may be, and shall notify its insured, or claimant as the case may be, in writing, of the requirements of this chapter regarding the recertification of salvage vehicles.  The notification shall be on a form prescribed by the director of finance."

     SECTION 2.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     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:

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Report Title:

Salvaged Motor Vehicles; Salvage Certificate; Insurance

Description:

Allows for the issuance of a salvage certificate for a motor vehicle without a 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.