RELATING TO TRANSPORTATION.

SB2053

THE SENATE

S.B. NO.

2053

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to transportation
.

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

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SECTION 1.
�
The legislature finds that the existing
process for transferring ownership of a salvaged motor vehicle to an insurance
company after a total loss insurance settlement can involve unnecessary delays
and paperwork burdens due to notarization and manual signature requirements.
�
These inefficiencies can hinder timely
processing, increase administrative costs, and burden vehicle owners, insurers,
and the counties.

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The purpose of this Act is to
modernize and streamline the vehicle title transfer process by allowing for
electronic signatures to be used for salvaged vehicles after a total loss
insurance settlement.

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SECTION
2
.
�
Section 286-48,
Hawaii Revised Statutes, is amended to read as follows:

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"
�286-48
�
Certificates of
ownership of salvaged motor vehicles.
�

(a)
�
Whenever a motor vehicle
subject to registration under this part is sold as salvage or conveyed to an
insurance company, in the ordinary course of business or as the result of a
total loss insurance settlement where the insurance company receives the
certificates of registration and ownership, the purchaser or, if an insurance company
,

its authorized agent, shall
,
within ten days from the purchase[
,
]
or the settlement of the insurance loss, forward the motor vehicle's endorsed
certificate of ownership or other evidence of title, certificate of
registration, license plates, and an application for a salvage certificate as
provided for in section 286-44.5, to the director of finance.
�
If the certificate of registration or one or
both license plates are lost, an affidavit, duly notarized and signed
or
signed electronically without a notary
by the party responsible for the
compliance of this section stating that the party has no knowledge of the
location of the certificate of registration or the license plates, shall be
filed with the director of finance of the county having jurisdiction over the
vehicle.
�
In any event the certificate of
ownership or other evidence of title shall be forwarded to the director of
finance.

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(b)
�

Upon receipt of the certificate of ownership, certificate of
registration, license plates, and application for a salvage certificate, the
director of finance shall issue a salvage certificate in the name of the purchaser
or insurance company.

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(c)
�

Upon resale of the salvage vehicle, the seller or, if the seller is an
insurance company, its authorized agent
,
shall transfer the salvage
certificate and issue a bill of sale to the purchaser
,
which shall be on
a form prescribed by the director of finance.
�

The seller shall notify the purchaser, in writing, of the requirements
of this chapter regarding the recertification of salvage vehicles.
�
The seller shall sell the salvage vehicle
only to a person licensed pursuant to chapter 437B, sections 289-4, or 445-232,
or any person who executes an affidavit [
which
]
that
states
whether or not the salvage vehicle would be used to construct a rebuilt vehicle
as defined in section 286-2 and that if the salvage vehicle is to be rebuilt,
the purchaser will register the rebuilt vehicle as required by this chapter.

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(d)
�

In the event the salvage vehicle is rebuilt so as to be capable of again
operating on the highways of [
this
]
the
State, the motor vehicle
shall not be licensed for such operation, nor shall the ownership thereof be
transferred until there is submitted to the director of finance:

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(1)
�
The prescribed
bill of sale;

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(2)
�
An appropriate
application for registration of the rebuilt or restored motor vehicle along
with the salvage certificate and a certificate of inspection signed by the
registered or certified motor vehicle repair dealer who is bonded as required
by section 437B-26, and who rebuilt the vehicle, attesting that the original
recognized vehicle manufacturer's established repair procedures or
specifications and allowable tolerances for the particular model and year were
utilized and adhered to; and

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(3)
�
Any other document
and fee required by the director of finance.

The counties may, by ordinance, establish the fee to
be charged for the inspection of rebuilt motor vehicles.

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(e)
�

Whenever a certificate of registration and certificate of ownership is
issued for a motor vehicle with respect to which a salvage certificate has been
previously issued, the new certificates shall conform to the requirements of
section 286-47 and:

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(1)
�
Bear the words
"Rebuilt Vehicle"; and

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(2)
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Appear in such a
manner as to distinguish them from the certificate of registration and
certificate of ownership for motor vehicles other than rebuilt or restored
motor vehicles.

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(f)
�

In the event a total loss insurance settlement between an insurance
company and its insured or a claimant for property damage caused by its insured
results in the retention of the salvage vehicle by the insured or claimant, as
the case may be, then in such event, the insurance company or its authorized
agent shall notify, within ten days from the date of settlement, the director
of finance of such retention by its insured or claimant, as the case may be,
and shall notify its insured, or claimant as the case may be, in writing, of
the requirements of this chapter regarding the recertification of salvage
vehicles.
�
The notification shall be on a
form prescribed by the director of finance.

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(g)
�
Notwithstanding any other law to the
contrary, supporting documents used to transfer ownership of a motor vehicle to
an insurer after payment of damages from the result of a total loss insurance
settlement pursuant to this section:

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(1)
�
Shall not
require a notarized signature;

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(2)
�
May be signed
electronically; and

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(3)
�
May be printed
on hard copy.

For the purposes of this subsection,
"supporting documents" includes but is not limited to power of
attorney, duplicate title, and odometer disclosure forms.

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(h)
�
An insurance company shall indemnify and hold
harmless the director of finance for any claims resulting from issuing a title
pursuant to this section utilizing documents signed electronically without a
notary.
"

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SECTION
3.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

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SECTION 4.
�
This Act shall take effect on January 1,
2027.

INTRODUCED BY:

_____________________________

Report Title:

Salvaged
Motor Vehicles; Transfer; Electronic Signature

Description:

Authorizes
supporting documents used to transfer ownership of a motor vehicle to an
insurer after payment of damages from the result of a total loss insurance
settlement to be signed electronically.
�

Requires insurance companies to indemnify and hold harmless the Director
of Finance for any claims resulting from the issuance of motor vehicle titles utilizing
documents signed electronically without a notary.
�
Effective 1/1/2027.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.