STAND. COM. REP. NO. 1321

Honolulu, Hawaii

, 2025

RE: S.B. No. 1522

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Transportation, to which was referred S.B. No. 1522 entitled:

"A BILL FOR AN ACT RELATING TO VEHICLE TITLE TRANSFERS,"

begs leave to report as follows:

The purpose of this measure is to clarify that a transferor shall not be liable for any violation resulting from the operation of a transferred vehicle if the transferor complies with certain provisions relating to the transfer.

Your Committee received testimony in support of this measure from the Department of Customer Services of the City and County of Honolulu; National Kidney Foundation of Hawaii; Pacific Auto Action; and one individual.

Your Committee finds that when a vehicle is transferred, the transfer is not considered complete until the county receives a certificate of ownership documenting the transfer.  This creates an issue when the buyer of a vehicle fails to submit the required documentation and the vehicle remains legally registered to the previous owner. As a result, the previous owner may be liable for things like parking tickets or certain infractions even though they are no longer in possession of the vehicle.

Your Committee further finds that H.B. No. 532, H.D. 1 (Regular Session of 2025), a substantially similar measure, was previously passed by your Committee.

Your Committee has amended this measure by:

(1) Deleting its contents and inserting the contents of H.B. No. 532, H.D. 1, a substantially similar measure that:

(A) Clarifies that proof that a transferor has filed required notice forms serves as a complete defense to any action brought against the transferor for an act or omission, civil or criminal, arising out of the use, operation, or abandonment of the vehicle by another person;

(B) Requires, by July 1, 2026, the courts to create new forms permitting transferors to respond to actions arising out of the use, operation, or abandonment of transferred vehicles; and

(C) Contains an effective date of July 1, 3000, to encourage further discussion; and

(2) Changing the date when the courts are required to create new forms for transferors to respond to actions to December 31, 2025.

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. 1522, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1522, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

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

____________________________

DARIUS KILA, Chair