STAND. COM. REP. NO. 2926

Honolulu, Hawaii

RE: S.B. No. 2053

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Commerce and Consumer Protection and Judiciary, to which was referred S.B. No. 2053, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(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 Committees received testimony in support of this measure from the Department of Customer Services of the City and County of Honolulu, Hawaii Insurers Council, Copart, and American Property Casualty Insurance Association.

Your Committees find that the existing system for transferring ownership of a salvaged motor vehicle to an insurer following a total loss insurance settlement requires notarized, manual signatures, which can create unnecessary delays, administrative burdens, and higher costs. Electronic signatures offer an effective mechanism for expediting title transfers and minimizing the number of related in-person visits. This measure would streamline the process, saving time and reducing costs for the benefit of the vehicle owner, insurer, and counties, while also protecting the Director of Finance against any claims arising from the use of electronically signed documents.

Your Committees have amended this measure by inserting an effective date of July 1, 2050, to encourage further discussion.

As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2053, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 2053, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Judiciary,

________________________________ KARL RHOADS, Chair

________________________________ JARRETT KEOHOKALOLE, Chair