HB 1680: Vehicle Transfer; Notification; Centralized Notification System

A BILL FOR AN ACT

RELATING TO VEHICLE TRANSFERS.

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

     SECTION 1.  The legislature finds that transferors of titles of motor vehicles in the State continue to suffer from the civil and criminal penalties incurred by transferees who fail to officially complete the transfer in a timely manner or at all.  Parking tickets, impound fees, and other legal or financial obligations resulting from the action or inaction of transferees unjustly remain the transferor's responsibility to resolve.

     The legislature further finds that Act 109, Session Laws of Hawaii 2025, attempted to address this problem by amending the existing state law on vehicle title transfer to include a provision on complete defense on the part of a legally compliant transferor to any act or omission, civil or criminal, arising from violations perpetrated by the transferee after the transfer date, but Act 109 has been insufficient to effect its purpose.  Multiple transferors in 2025 have been fined due to actions from transferees nevertheless, and subsequent attempts to invoke the complete defense provision to resolve these penalties in the favor of the transferor have been frustrating and time-intensive.  One noted area of concern is that county agencies involved in vehicular administration and law enforcement are not updating applicable state agencies to the detriment of law-abiding transferors who must expend extra effort and resources in the resolution of their unjust cases.

     Accordingly, the purpose of this Act is to:

     (1)  Mandate a transfer notification by county directors of finance to all applicable state and local agencies upon receipt of official notification of a vehicle transfer from a transferor; and

     (2)  Require each county to establish an automatic and instantaneous notification system by July 1, 2027.

     SECTION 2.  Section 286-52, Hawaii Revised Statutes, is amended by amending subsections (i) and (j) to read as follows:

     "(i)  Every dealer, upon transferring a motor vehicle, whether by sale, lease, or otherwise, shall immediately give notice of the transfer to the director of finance upon the official form provided by the director of finance.  Each notice shall contain the date of the transfer, the names and addresses of the transferor and transferee, and a description of the vehicle as may be called for in the official form.  Upon receipt of the official form, the director of finance shall immediately notify all applicable state and local agencies of the transfer through a centralized notification system.

     (j)  Every person, other than a dealer, upon transferring a motor vehicle, whether by sale, lease, or otherwise, shall within ten days give notice of the transfer to the director of finance upon the official form provided by the director of finance.  Every notice shall contain the date of transfer, the names and addresses of the transferor and transferee, and a description of the vehicle as may be called for in the official form.  Any person who violates this subsection shall be fined no more than $100.  Upon receipt of the official form, the director of finance shall immediately notify all applicable state and local agencies of the transfer through a centralized notification system."

     SECTION 3.  No later than July 1, 2027, each county director of finance shall establish a centralized notification system that automatically and instantaneously updates all applicable agencies, including but not limited to:

     (1)  State and county law enforcement agencies;

     (2)  The department of accounting and general services; and

     (3)  The judiciary,

upon notice of a transfer of a motor vehicle title.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 3000.

Report Title:

Vehicle Transfer; Notification; Centralized Notification System

Description:

Requires each county Director of Finance to notify all applicable state and local agencies upon receipt of official notification of a vehicle transfer from a transferor.  Requires each county Director of Finance to establish a centralized notification system to applicable agencies for every vehicle transfer by 7/1/2027.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to vehicle transfers.

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

     SECTION 1.  The legislature finds that transferors of titles of motor vehicles in the State continue to suffer from the civil and criminal penalties incurred by transferees who fail to officially complete the transfer in a timely manner or at all.  Parking tickets, impound fees, and other legal or financial obligations resulting from the action or inaction of transferees unjustly remain the transferor's responsibility to resolve.

     The legislature further finds that Act 109, Session Laws of Hawaii 2025, attempted to address this problem by amending the existing state law on vehicle title transfer to include a provision on complete defense on the part of a legally compliant transferor to any act or omission, civil or criminal, arising from violations perpetrated by the transferee after the transfer date, but this Act has been insufficient to effect its purpose.  Multiple transferors in 2025 have been fined due to actions from transferees nevertheless, and subsequent attempts to invoke the complete defense provision to resolve these penalties in the favor of the transferor have been frustrating and time-intensive.  One noted area of concern is that county agencies involved in vehicular administration and law enforcement are not updating applicable state agencies to the detriment of law-abiding transferors who must expend extra effort and resources in the resolution of their unjust cases.

     Accordingly, the purpose of this Act is to:

     (1)  Amend the law on vehicle title transfer to mandate a transfer notification by county directors of finance to all applicable state and local agencies; and

     (2)  Require each county to establish an automatic and instantaneous notification system by July 1, 2027.

     SECTION 2.  Section 286-52, Hawaii Revised Statutes, is amended by amending subsections (i) and (j) to read as follows:

     "(i)  Every dealer, upon transferring a motor vehicle, whether by sale, lease, or otherwise, shall immediately give notice of the transfer to the director of finance upon the official form provided by the director of finance.  Each notice shall contain the date of the transfer, the names and addresses of the transferor and transferee, and a description of the vehicle as may be called for in the official form.  Upon receipt of the official form, the director of finance shall immediately notify all applicable state and local agencies of the transfer through a centralized notification system.

     (j)  Every person, other than a dealer, upon transferring a motor vehicle, whether by sale, lease, or otherwise, shall within ten days give notice of the transfer to the director of finance upon the official form provided by the director of finance.  Every notice shall contain the date of transfer, the names and addresses of the transferor and transferee, and a description of the vehicle as may be called for in the official form.  Any person who violates this subsection shall be fined no more than $100.  Upon receipt of the official form, the director of finance shall immediately notify all applicable state and local agencies of the transfer through a centralized notification system."

     SECTION 3.  No later than July 1, 2027, each county director of finance shall establish a centralized notification system that automatically and instantaneously updates all applicable agencies, including but not limited to:

     (1)  State and county law enforcement agencies;

     (2)  The department of accounting and general services; and

     (3)  The judiciary,

upon notice of a transfer of a motor vehicle title.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

Report Title:

Vehicle Transfer; Notification; Centralized Notification System

Description:

Requires each county Director of Finance to notify all applicable state and local agencies upon receipt of official notification of a vehicle transfer from a transferor.  Requires each county Director of Finance to establish a centralized notification system to applicable agencies for every vehicle transfer by 7/1/2027.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  434-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1680

      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 H.B. No. 1680 entitled:

"A BILL FOR AN ACT RELATING TO VEHICLE TRANSFERS,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Mandate a transfer notification by county directors of finance to all applicable state and local agencies upon receipt of official notification of a vehicle transfer from a transferor; and

     (2)  Require each county to establish an automatic and instantaneous notification system by July 1, 2027.

     Your Committee received testimony in support of this measure from one individual.  Your Committee received testimony in opposition to this measure from the Department of Customer Services for the City and County of Honolulu.

     Your Committee finds that many residents who properly submit notice of a motor vehicle transfer continue to experience penalties and legal complications when the transferee fails to complete the title transfer.  Despite prior legislative efforts to provide a complete defense for compliant transferors, breakdowns in communication among county and state agencies have allowed parking citations, impound costs, and other liabilities to be improperly attributed to former owners.  By mandating immediate notification to all relevant state and local agencies and requiring counties to implement a centralized, automatic notification system, this measure ensures timely record updates and more effectively protects transferors from unwarranted consequences.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 3000, to encourage further discussion; and

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

     Your Committee respectfully requests your Committee on Judiciary & Hawaiian Affairs, should it deliberate on this measure, to consider which state and local agencies would need to receive a transfer notification by county directors of finance through the centralized notification system.

     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 H.B. No. 1680, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1680, 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,