STAND. COM. REP. NO. 1055-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1691

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1691, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Authorize 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; 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 of the City and County of Honolulu; American Property Casualty Insurance Association; Hawaii Insurers Council; and Copart, Inc.

Your Committee finds that the existing process for transferring ownership of salvaged motor vehicles after a total loss settlement is slowed by notarization requirements and manual documentation, creating unnecessary delays for vehicle owners, insurers, and county agencies. These burdens increase administrative costs and impede prompt processing at a time when vehicle owners are often attempting to quickly resolve transportation needs following a total loss. This measure aims to streamline title transfers and modernize the system to improve customer efficiency statewide.

Your Committee has amended this measure by:

(1) Clarifying that a declaration can be signed electronically without a notary in cases of lost registrations or license plates; and

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

Your Committee suggests that, as this measure moves through the legislative process, an effective date of July 1, 2027, be considered to allow time for further discussion among agencies, insurers, and related partners with respect to their document systems and workflows.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1691, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1691, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

SCOT Z. MATAYOSHI, Chair