STAND. COM. REP. NO. 1027-20

Honolulu, Hawaii

, 2020

RE: S.B. No. 2434

S.D. 1

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred S.B. No. 2434, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLES,"

begs leave to report as follows:

The purpose of this measure is to address the disposition of abandoned motor vehicles by authorizing the county directors of finance to issue certificates of ownership and salvage certificates to expedite the disposal of abandoned vehicles, under specified circumstances.

Your Committee received testimony in support of this measure from the Hawaii Insurers Council and Insurance Auto Auctions, Inc. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs Insurance Division.

Your Committee finds that this measure will help to implement Hawaii's motor vehicle salvage laws in a more efficient and expeditious manner.

Your Committee has amended this measure by:

(1) Changing its effective date to July 1, 2050, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

Your Committee notes the concerns raised by the Insurance Commissioner that the expeditiousness with which the transfer of ownership between an insurance policyholder and the insurer can occur as set forth in this measure may actually adversely affect insurance policyholders under certain circumstances.

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2434, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2434, S.D. 1, H.D. 1, and be referred to your Committee on Intrastate Commerce.

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

____________________________

HENRY J.C. AQUINO, Chair