STAND. COM. REP. NO. 3150

Honolulu, Hawaii

RE: H.B. No. 1625

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Transportation and Energy, to which was referred H.B. No. 1625, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLE REGISTRATION,"

begs leave to report as follows:

The purpose and intent of this measure is to allow the registered owner of a motor vehicle to designate a beneficiary to whom ownership of the vehicle shall be transferred upon the registered owner's death.

Your Committee received testimony in support of this measure from two individuals.

Your Committee finds that owners of motor vehicles do not always prepare for the ownership of their vehicle after they die. This can lead to confusion about vehicle ownership, annual registration and safety checks, maintenance, and abandonment when the owner of the vehicle passes away. Allowing owners to designate a beneficiary in the event of death will reduce the problems related to unclear ownership of the vehicle.

Your Committee notes that S.B. No. 2240 (Regular Session of 2018) is a substantially similar measure. In addition to allowing the designation of a beneficiary, S.B. No. 2240 also establishes how the designation of the beneficiary may be revoked or changed, establishes procedures for transferring ownership after death, and makes additional conforming amendments in the Hawaii Revised Statutes. Your Committee concludes that the language in S.B. No. 2240 is preferable because changing the beneficiary is an important option for vehicle owners and the process for transferring ownership needs to be clear.

Accordingly, your Committee has amended this measure by:

(1) Deleting its contents and inserting the contents of S.B. No. 2240, which:

(A) Allows upon the registration of a vehicle, that the owner of a vehicle to designate a beneficiary to whom the vehicle will be transferred to upon the owner's death, and establishes how the designation of the beneficiary may be revoked or changed;

(B) Adds to the certificate of registration after the name of the owner, the words "transfer on death to" followed by the name of the beneficiary; and

(C) Establishes procedures for transferring ownership after death; and

(2) Inserting an effective date of January 1, 2100, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Transportation and Energy that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1625, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1625, H.D. 1, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Transportation and Energy,

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LORRAINE R. INOUYE, Chair