Report Title:

Salvaged Vehicles; Disallows Non-Licensed Persons from Purchasing; Highway Safety.

Description:

Disallows non-licensed individuals from purchasing and rebuilding salvaged vehicles. (HB137 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

137

TWENTY-SECOND LEGISLATURE, 2003

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to highway safety.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that salvaged vehicles are often purchased, rebuilt, and sold as used or reconditioned vehicles. Unfortunately, this can result in unsafe vehicles being driven on Hawaii's roadways if the person rebuilding the vehicle is unlicensed. Moreover, law enforcement officials have stated that unlicensed persons who rebuild and sell salvaged vehicles often use stolen parts, thereby creating a market for stolen parts, which leads to increased auto thefts.

Prohibiting the unlicensed individual from buying salvaged vehicles has its advantages, the most important of which is the safety of the Hawaii's motorists and roadways. Decreasing the market for stolen parts is a secondary benefit.

The purpose of this Act is to improve highway safety by prohibiting nonlicensed individuals from purchasing and rebuilding salvaged vehicles.

SECTION 2. Section 286-48, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) Upon resale of the salvage vehicle, the seller or, if the seller is an insurance company, its authorized agent shall transfer the salvage certificate and issue a bill of sale to the purchaser which shall be on a form prescribed by the director of finance. The seller shall notify the purchaser, in writing, of the requirements of this chapter regarding the recertification of salvage vehicles. The seller shall sell the salvage vehicle only to a person licensed pursuant to chapter 437B, sections 289-4[,] or 445-232[, or any person who executes an affidavit which states whether or not the salvage vehicle would be used to construct a rebuilt vehicle as defined in section 286-2 and that if the salvage vehicle is to be rebuilt, the purchaser will register the rebuilt vehicle as required by this chapter]."

SECTION 3. Statutory material to be repealed is bracketed and stricken.

SECTION 4. This Act shall take effect upon its approval.