STAND. COM. REP. NO. 1231-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2053

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. 2053, S.D. 2, 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 Transportation; Department of Customer Services of the City and County of Honolulu; Hawaii Insurers Council; American Property Casualty Insurance Association; and Copart.

Your Committee finds that the process for transferring ownership of salvaged motor vehicles following a total loss insurance settlement can involve unnecessary delays due to notarization requirements and the need for manual signatures. These administrative burdens can slow the processing of salvage titles and increase costs for vehicle owners, insurance companies, and county agencies responsible for issuing titles. By allowing electronic signatures and eliminating the requirement for notarized signatures on certain supporting documents, this measure will modernize the title transfer process while maintaining appropriate documentation standards.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 2027; and

(2) 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. 2053, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2053, S.D. 2, 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