SB2053

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.

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 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.

(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 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 operation, nor shall the ownership thereof 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 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

(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 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 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.

(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:

(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, 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 January 1, 2027.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2053
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII