STAND. COM. REP. NO. 433-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1691

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Transportation, to which was referred H.B. No. 1691 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

The purpose of this measure is to, beginning January 1, 2027:

(1) Authorize 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; and

(2) Require 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.

Your Committee received testimony in support of this measure from the Department of Customer Services for the City and County of Honolulu; Hawaii Insurers Council; Copart; American Property Casualty Insurance Association; and one individual.

Your Committee finds that the current process for transferring ownership of a salvaged motor vehicle to an insurance company following a total loss insurance settlement relies on notarized signatures and manual paperwork, which can create unnecessary delays and administrative burdens. Modernizing this process to permit the use of electronic signatures and to eliminate mandatory notarization for supporting documents reflects current business practices and technological capabilities. By authorizing electronic signatures, this measure streamlines title transfers by reducing paperwork burdens for insurance companies, vehicle owners, and county departments.

Your Committee has amended this measure by:

(1) Replacing the term "insurer" with "insurance company";

(2) Clarifying the term "supporting documents";

(3) Changing the effective date to July 1, 3000, to encourage further discussion; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1691, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1691, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Transportation,

____________________________

DARIUS KILA, Chair