REPORT TITLE:
License plates


DESCRIPTION:
Establishes recovery agencies to seize the license plates of
uninsured motor vehicles.  Also establishes an on-line computer
network and database for purposes of verifying whether a vehicle
has a current no-fault insurance policy prior to the
registration, renewal, or transfer of registration of a motor
vehicle.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            63          
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1998                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO MOTOR VEHICLES.



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

 1      SECTION 1.  Chapter 286, Hawaii Revised Statutes, is amended
 
 2 by adding a new part to be appropriately designated and to read
 
 3 as follows:
 
 4                 "PART   .  LICENSE PLATE SEIZURE
 
 5      §286-   Definitions. As used in this part unless the
 
 6 context otherwise requires:
 
 7      "Applicant" means every person who has applied to the
 
 8 insurance commissioner for a license to engage in the business of
 
 9 performing repossessions.
 
10      "License" means the authority to engage in the business of
 
11 performing repossessions.
 
12      "Person" means any individual, company, association,
 
13 organization, group, partnership, business, trust, or
 
14 corporation.
 
15      "Recovery agency" means any person licensed by the insurance
 
16 commissioner pursuant to section 286-   , who for consideration,
 
17 advertises as providing or is engaged in the business of
 
18 performing repossessions.
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      §286-     Recovery agency; licensing.(a)  No person shall
 
 2 act as a recovery agency and no recovery agency shall transact
 
 3 repossession business in this State except as authorized by a
 
 4 license granted to it by the insurance commissioner. 
 
 5      (b)  No recovery agency license shall be issued to an
 
 6 applicant if:
 
 7      (1)  The applicant, one or more of the partners in an
 
 8           applicant partnership, or one or more officers or
 
 9           directors in an applicant corporation formerly held a
 
10           recovery agency license that was revoked or suspended
 
11           and never reinstated;
 
12      (2)  The applicant does not provide its federal employer
 
13           identification number to the insurance commissioner;
 
14      (3)  The application contains any statements known by the
 
15           applicant to be false; or
 
16      (4)  The applicant conceals any fact known to be material.
 
17      (c)  Any person or recovery agency who engages in the
 
18 business of performing repossessions without a current license
 
19 issued by the insurance commissioner, shall be fined not more
 
20 than $500, imprisoned not more than six months, or both.
 
21      §286-  License plates subject to seizure.(a)  License
 
22 plates subject to seizure under this part are those that do not
 
23 appear on the database for motor vehicle insurance as set forth
 
24 in section 431:10C-   .
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      (b)  Immediately before seizing the license plates, the
 
 2 recovery agency shall verify whether the motor vehicle is covered
 
 3 by a current no-fault insurance policy by obtaining the
 
 4 information from the database for motor vehicle insurance as set
 
 5 forth in section 431:10C-   .
 
 6      §286-    Seizure; notice.(a)  Upon seizure of the license
 
 7 plates, the recovery agency shall post in a conspicuous place on
 
 8 the vehicle, generally on the front windshield and held by the
 
 9 windshield wiper, without causing any damage to the vehicle, a
 
10 notice prescribed by the insurance commissioner that advises the
 
11 motorist that the license plates have been seized in accordance
 
12 with this part.  The notice shall contain the following
 
13 information:
 
14      (1)  If the motor vehicle was properly insured, the
 
15           procedures the owner may follow for the return of the
 
16           license plates of the motor vehicle; and
 
17      (2)  If the motor vehicle was uninsured, the procedures the
 
18           owner may follow to obtain no-fault motor vehicle
 
19           insurance and replacement license plates.
 

 
 
 
 
 
 
 
 
 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      (b)  Upon seizure of the license plates, the recovery agency
 
 2 shall file a report and submit the license plates to the director
 
 3 of finance by the end of the next business day.  The director of
 
 4 finance shall immediately furnish information to the motor
 
 5 vehicle computer files to prevent the owner from obtaining
 
 6 replacement license plates.  The director of finance may destroy
 
 7 the seized license plates.
 
 8      §286-    Reissuance of license plates; fees.(a)  The
 
 9 director of finance shall issue new license plates upon proof of
 
10 possession of a valid no-fault or liability insurance
 
11 identification card applicable to the motor vehicle operated as
 
12 required under section 431:10C-107 and a reissuance fee of $600.
 
13      (b)  The reissuance fee shall be paid as follows:
 
14      (1)  One-third to the director of finance;
 
15      (2)  One-third to the recovery agency; and
 
16      (3)  One-third to the insurance commissioner for deposit
 
17           into the no-fault administration revolving fund.
 
18      (c)  The director of finance shall transmit to each recovery
 
19 agency a monthly status report of license plates seized,
 
20 reissuance fees collected, and other pertinent information.
 
21      (d)  The reissuance fee shall not be collected if the
 
22 motorist proves that the vehicle was insured at the time of
 
23 license plate seizure.
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      §286-     Rules.  The insurance commissioner shall adopt
 
 2 rules pursuant to chapter 91 necessary for the purposes of this
 
 3 part.
 
 4      §286-   No-fault verification.  (a)  Before allowing any
 
 5 registration, renewal of registration, or transfer of
 
 6 registration of any motor vehicle, the director of finance of
 
 7 each county shall verify whether the motor vehicle is covered by
 
 8 a current no-fault insurance policy.  The verification shall be
 
 9 made by obtaining the information in the database for motor
 
10 vehicle insurance as set forth in section 431:10C-    or by
 
11 receiving from the owner of the motor vehicle a written binder of
 
12 insurance verifying that insurance was obtained on the motor
 
13 vehicle within the past forty-five days.  The binder of insurance
 
14 shall be written by an insurer licensed in the State.
 
15      (b)  If the county director of finance is not able to verify
 
16 the insurance from the information in the database for motor
 
17 vehicle insurance or from a written binder of insurance, the
 
18 county director of finance shall not register, renew, or transfer
 
19 the registration of the motor vehicle.
 
20      (c)  The requirements in this section shall not apply to
 
21 motorcycles or motorscooters."
 

 
 
 
 
 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      SECTION 2.  Article 10C, chapter 431, Hawaii Revised
 
 2 Statutes, is amended by adding a new section to part I to be
 
 3 appropriately designated and to read as follows:
 
 4      "§431:10C-     Database for motor vehicle insurance;
 
 5 establishment; use.   (a)  The insurance commissioner shall
 
 6 establish an on-line computer network and database with all
 
 7 licensed motor vehicle insurers in the State.  Within two days of
 
 8 the effective date for coverage on a policy, each insurer shall
 
 9 input the vehicle identification number and the name or
 
10 designated code of the insurer into the database.  Within two
 
11 days of cancellation or nonrenewal of any policy, the insurer
 
12 shall delete the information from the insurance identification
 
13 database.
 
14      (b)  The insurance commissioner shall make the database
 
15 available to the county directors of finance to verify whether a
 
16 motor vehicle has a current no-fault insurance policy prior to
 
17 the registration, renewal, or transfer of registration of any
 
18 motor vehicle.
 
19      The insurance commissioner shall make the database available
 
20 to the county police departments and recovery agencies for
 
21 enforcement purposes.
 
22      (c)  The requirements in this section shall not apply to
 
23 motorcycles or motorscooters."
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      SECTION 3.  Section 431:10C-115.5, Hawaii Revised Statutes,
 
 2 is amended by amending subsection (b) to read as follows:
 
 3      "(b)  This fund shall be used to pay the costs of
 
 4 administering the commissioner's obligations under this
 
 5 article[.] and part     of chapter 286.  The costs shall include
 
 6 but not be limited to costs related to [public]:
 
 7      (1)  Public education and information[, costs related to
 
 8           closed];
 
 9      (2)  Closed claims studies and other studies and evaluations
 
10           relating to motor vehicle insurance[, costs related to
 
11           the];
 
12      (3)  The administration of the motor vehicle insurance
 
13           benefits task force[, and costs related to
 
14           administrative];
 
15      (4)  The establishment and administration of the on-line
 
16           computer network and database required in section
 
17           431:10C-   ; and
 
18      (5)  Administrative contracts with personnel necessary to
 
19           carry out the purposes of this article[.] and part    
 
20           of chapter 286.
 
21      The commissioner may hire attorneys for the insurance fraud
 
22 investigations unit, insurance fraud investigators, insurance
 

 
 
 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 fraud investigator assistants, and other support staff without
 
 2 regard to chapters 76 and 77."
 
 3      SECTION 4.  Statutory material to be repealed is bracketed.
 
 4 New statutory material is underscored.
 
 5      SECTION 5.  This Act shall take effect on January 1, 2000.
 
 6 
 
 7                           INTRODUCED BY:  _______________________