Report Title:

Motor Vehicle Dealers

 

Description:

Allows motor vehicle dealers of used vehicles to have in their possession reasonable indicia of ownership or right of possession, as an alternative to a legal ownership certificate, when selling the used vehicle.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

270

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

relating to the motor vehicle industry licensing act.

 

 

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

 


     SECTION 1.  Section 437-12, Hawaii Revised Statutes, is amended to read as follows:

     "§437-12  Legal ownership certificates[.]; reasonable indicia of ownership or right of possession.  (a)  Possession or proof of possession of legal ownership certificate.  No dealer shall sell or advertise for sale a motor vehicle unless the dealer has in the dealer's possession or proof of possession of the legal ownership certificate of the subject motor vehicle[.]; provided that if the vehicle is a used motor vehicle, the dealer may sell or advertise for sale the used motor vehicle if the dealer has in the dealer's possession reasonable indicia of ownership or right of possession of the legal ownership certificate of the subject motor vehicle.

     (b)  Delivery of legal ownership certificate.  The legal ownership certificate shall be delivered within the period as provided in section 286-52(b).

     (c)  For the purposes of this section, the term "reasonable indicia of ownership or right of possession" includes but is not limited to:

     (1)  A consignment contract between the owner and the dealer along with a secure power of attorney from the owner to the dealer authorizing the dealer to apply for a duplicate certificate of title and assign the title on behalf of the owner;

     (2)  A court order awarding title to the vehicle to the dealer;

     (3)  A salvage certificate of title;

     (4)  A photocopy of a duly assigned certificate of title being held by a financial institution as collateral for a business loan of money to the dealer;

     (5)  A copy of a cancelled check or other documentation evidencing that an outstanding lien on the vehicle taken in trade by a dealer has been satisfied and that the certificate of title will be, but has not yet been, received by the dealer;

     (6)  A vehicle purchase order or installment contract for a specific vehicle identifying that vehicle as a trade-in on a replacement vehicle; or

     (7)  A duly executed odometer disclosure statement as required under 49 United States Code section 32705."

     SECTION 2.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

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

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

 

INTRODUCED BY:

_____________________________