STAND. COM. REP. NO. 2123

Honolulu, Hawaii

RE: S.B. No. 2079

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Energy and Intergovernmental Affairs, to which was referred S.B. No. 2079 entitled:

"A BILL FOR AN ACT RELATING TO VEHICLE TITLES,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Require the county Director of Finance to issue a temporary, three-year title to an applicant in cases where no prior title exists, the prior owner is unable to provide one, or the Director is otherwise not satisfied as to the ownership of the vehicle;

(2) Require the applicant to provide a surety bond and certain documentation to the Director;

(3) Allow for a right of action against the surety bond and temporary title; and

(4) Require the temporary title to convert to a full title after three years unless a suit has been instituted against the temporary title.

Your Committee received testimony in opposition to this measure from the Department of Customer Services of the City and County of Honolulu.

Your Committee finds that existing law strictly regulates motor vehicle ownership and title transfers for the purpose of ensuring public safety. While most motor vehicle transfers display clear chains of ownership, sometimes motor vehicles are sold, gifted, donated, or otherwise transferred by individuals who did not obtain or retain a valid certificate of title. Your Committee further finds that it is critical for the State to provide relief to individuals who possess motor vehicles without standard title documentation. By establishing a mechanism for good-faith individuals to obtain a certificate of title for a vehicle, this measure will allow motor vehicle owners to comply with motor vehicle registration and transfer laws.

As affirmed by the record of votes of the members of your Committee on Energy and Intergovernmental Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2079 and recommends that it pass Second Reading and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Energy and Intergovernmental Affairs,

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GLENN WAKAI, Chair