HOUSE OF REPRESENTATIVES	H.B. NO.	270
THIRTIETH LEGISLATURE, 2019		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO REBUILT VEHICLES.

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

SECTION 1. The legislature finds that existing laws inhibit insurers' ability to push a rebuilt or salvage title when a total loss is retained by the insured for a flooded vehicle. Current cars have a significant amount of electronic devices installed throughout the vehicle and are highly vulnerable to flood damage, particularly if salt water is involved. Such vehicles should have a branded title to warn potential subsequent purchasers.

Accordingly, the purpose of this Act is to expand the definition of "rebuilt vehicle" to include motor vehicles that have been rebuilt after flood damage and material damage to the vehicle's electronics.

SECTION 2. Section 286-2, Hawaii Revised Statutes, is amended by amending the definition of "rebuilt vehicle" to read as follows:

""Rebuilt vehicle" means any vehicle which has been declared a total loss by an insurer and has been rebuilt or repaired to operate on public highways. For the purpose of this definition, a vehicle is a total loss only if there is material damage, including flood damage, to the vehicle's electronics, frame, unitized structure, or suspension system, and the projected cost of repairing the damage exceeds the market value of the vehicle at the time of the incident causing it to be declared a total loss."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 3000.

Report Title:

Rebuilt Vehicle; Flood Damage; Electronics

Description:

Expands the definition of "rebuilt vehicle" to include vehicles that have been rebuilt after flood damage and material damage to the vehicle's electronics. (HB270 HD1)

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