STAND. COM. REP. NO. 1233-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2009

S.D. 2

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 S.B. No. 2009, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLES,"

begs leave to report as follows:

The purpose of this measure is to facilitate the transfer of ownership of used motor vehicles between individuals and reduce the risk of liability for transferors by requiring:

(1) A transferor to remove the numbered plates and registration tag or emblem from the motor vehicle;

(2) A transferee to register the motor vehicle within seven days;

(3) The transferee to obtain new number plates and tags or emblems for the motor vehicle; and

(4) Each county Director of Finance to:

(A) Notify all applicable state and local agencies upon receipt of official notification of a vehicle transfer from a transferor; and

(B) Establish a centralized notification system for applicable agencies for every vehicle transfer by July 1, 2028.

Your Committee received testimony in opposition to this measure from the Office of the Mayor of the County of Hawaiʻi and Department of Customer Services of the City and County of Honolulu. Your Committee received comments on this measure from the Judiciary.

Your Committee finds that individuals who transfer ownership of used motor vehicles to another private party may remain exposed to civil or criminal liability when the transferee fails to promptly complete the required title transfer and registration. In these situations, transferors may continue to receive parking citations, impound fees, or other penalties associated with the vehicle even though they no longer possess or control it. This measure addresses these issues by requiring new number plates for vehicles transferred between private individuals and establishing centralized and timely notification systems to ensure that relevant state and county agencies are promptly informed of vehicle ownership transfers, thereby reducing the risk of liability for lawful transferors.

Your Committee further finds that Act 59, Session Laws of Hawaii 2020 (Act 59), prohibited restrictions on a person's ability to obtain or renew a driver's license or to register, renew, transfer, or receive title to a motor vehicle due to unpaid monetary obligations incurred on or after November 1, 2020. Since its enactment, however, tens of millions of dollars in fines remain unpaid, allowing individuals with outstanding obligations to continue operating motor vehicles without consequence. Your Committee believes that repealing Act 59 and restoring certain enforcement mechanisms for unpaid traffic fines will promote accountability among cited drivers and ensure greater compliance with traffic laws.

Your Committee has amended this measure by:

(1) Inserting language that imposes a restriction on a person's ability to obtain or renew a driver's license or to register, renew the registration of, or transfer or receive title to a motor vehicle, as a consequence of unpaid monetary obligations, under certain circumstances;

(2) Repealing provisions that would have allowed any person prevented from obtaining or renewing a driver's license or motor vehicle registration solely due to failure to pay any monetary assessment imposed under chapter 291D, Hawaii Revised Statutes, to petition the court for a driver's license or motor vehicle clearance;

(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 S.B. No. 2009, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2009, S.D. 2, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

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

____________________________

DARIUS KILA, Chair