Authorizes supporting documents used to transfer ownership of a motor vehicle to an insurance company after payment of damages from the result of a total loss insurance settlement to be signed electronically. Requires in, the official text

THE SENATE

S.B. NO.

2053

THIRTY-THIRD LEGISLATURE, 2026

S.D. 2

STATE OF HAWAII

H.D. 2

C.D. 1

A BILL FOR AN ACT

RELATING TO TRANSPORTATION.

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

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, insurance
companies, and the counties.

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.

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

"§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 the
purchaser is 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 a declaration 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 motor
vehicle.  In any event the certificate of
ownership or other evidence of title shall be forwarded to the director of
finance.

(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.

(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] section
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.

(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] the operation, nor shall the
ownership [thereof] of the motor vehicle be transferred until
there is submitted to the director of finance:

(1)  The prescribed
bill of sale;

(2)  An appropriate
application for registration of the rebuilt vehicle or restored motor
vehicle along with the salvage certificate and a certificate of inspection
signed by the [registered or certified] licensed 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

(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.

(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:

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

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

(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] that event, the insurance company
or its authorized agent shall notify, within ten days from the date of
settlement, the director of finance of [such] the 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.

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

(1)  Shall not
require a notarized signature;

(2)  May be signed
electronically; and

(3)  May be printed
on hard copy.

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

(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."

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

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