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HB1680
HOUSE OF REPRESENTATIVES
H.B. NO.
1680
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
relating
to vehicle transfers
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
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The
legislature finds that transferors of titles of motor vehicles in the State
continue to suffer from the civil and criminal penalties incurred by
transferees who fail to officially complete the transfer in a timely manner or
at all.
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Parking tickets, impound fees,
and other legal or financial obligations resulting from the action or inaction
of transferees unjustly remain the transferor's responsibility to resolve.
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The legislature further finds that Act 109,
Session Laws of Hawaii 2025, attempted to address this problem by amending the
existing state law on vehicle title transfer to include a provision on complete
defense on the part of a legally compliant transferor to any act or omission,
civil or criminal, arising from violations perpetrated by the transferee after
the transfer date, but this Act has been insufficient to effect its
purpose.
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Multiple transferors in 2025
have been fined due to actions from transferees nevertheless, and subsequent
attempts to invoke the complete defense provision to resolve these penalties in
the favor of the transferor have been frustrating and time-intensive.
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One noted area of concern is that county
agencies involved in vehicular administration and law enforcement are not
updating applicable state agencies to the detriment of law-abiding transferors
who must expend extra effort and resources in the resolution of their unjust
cases.
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Accordingly, the purpose of this Act is to:
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(1)
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Amend
the law on vehicle title transfer to mandate a transfer notification by county
directors of finance to all applicable state and local agencies; and
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(2)
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Require
each county to establish an automatic and instantaneous notification system by
July 1, 2027.
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SECTION
2
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Section 286-52, Hawaii Revised Statutes, is
amended by amending subsections (i) and (j) to read as follows:
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"(i)
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Every dealer, upon transferring a motor vehicle, whether by sale, lease,
or otherwise, shall immediately give notice of the transfer to the director of
finance upon the official form provided by the director of finance.
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Each notice shall contain the date of the
transfer, the names and addresses of the transferor and transferee, and a
description of the vehicle as may be called for in the official form.
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Upon receipt of the official form, the
director of finance shall immediately notify all applicable state and local agencies
of the transfer through a centralized notification system.
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(j)
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Every person, other than a dealer, upon
transferring a motor vehicle, whether by sale, lease, or otherwise, shall
within ten days give notice of the transfer to the director of finance upon the
official form provided by the director of finance.
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Every notice shall contain the date of
transfer, the names and addresses of the transferor and transferee, and a
description of the vehicle as may be called for in the official form.
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Any person who violates this subsection shall
be fined no more than $100.
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Upon
receipt of the official form, the director of finance shall immediately notify
all applicable state and local agencies of the transfer through a centralized
notification system.
"
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SECTION 3.
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No later than July 1, 2027, each county director of finance shall
establish a centralized notification system that automatically and
instantaneously updates all applicable agencies, including but not limited to:
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(1)
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State
and county law enforcement agencies;
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(2)
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The
department of accounting and general services; and
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(3)
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The
judiciary,
upon notice
of a transfer of a motor vehicle title.
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SECTION 4.
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New statutory material is underscored.
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SECTION 5.
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This Act shall take effect upon its approval.
INTRODUCED BY:
_____________________________
Report Title:
Vehicle
Transfer; Notification; Centralized Notification System
Description:
Requires
each county Director of Finance to notify all applicable state and local
agencies upon receipt of official notification of a vehicle transfer from a
transferor.
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Requires each county Director
of Finance to establish a centralized notification system to applicable
agencies for every vehicle transfer by 7/1/2027.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.