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HomeMy WebLinkAboutResolution No. 2020-344 COUNTY COUNCIL COUNTY OF KAUA`I �P$OCUiIOTY �« m�-� RESOLUTION APPROVING A STATE BILL RELATING TO REGISTRATION OF VEHILCES FOR INCLUSION IN THE 2021 COUNTY OF KAUNI LEGISLATIVE PACKAGE AND THE 2021 HAWAFI STATE ASSOCIATION OF COUNTIES LEGISLATIVE PACKAGE WHEREAS, buyers often provide false, unreadable, or unusable contact information to sellers for the Notice of Transfer document, then fail to register the vehicle under the buyer's name; and WHEREAS, sellers sometimes provide fraudulent information to counties regarding a staged transfer of vehicles to unidentifiable buyers, which some sellers use to absolve themselves of any responsibility in the proper disposal of unwanted vehicles; and WHEREAS, there is loss of tax revenue when buyers do not register vehicles under the buyer's name; and WHEREAS, there is a significant loss of revenue when vehicles are dumped, and counties have no means of properly identifying and tracking down the new owner of the vehicles (towing costs, etc.); and WHEREAS, buyers are subject to fraud when purchasing vehicles from sellers who have not disclosed unpaid taxes, fraudulent registration stickers, or other pertinent vehicle information to buyers; and WHEREAS, sellers are subject to law enforcement inquiries when buyers do not register the vehicles under the buyer's name; and WHEREAS, it is difficult for law enforcement to identify and locate someone who allegedly bought or acquired a vehicle, but did not provide accurate contact information to the seller, which may cause the original owner to become embroiled in any ensuing criminal investigations involving the vehicle; and WHEREAS, both parties will be better protected from fraud with this Bill, as it will help counties keep current and accurate records of vehicle transfers and ownership; now, therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF KAUA`I, STATE OF HAWAI`I, that it hereby approves the following: 1. That the proposed State bill Relating to Registration of Vehicles, which is attached hereto as Exhibit "A," will be included in the 2021 County of Kauai Legislative Package. 2. That the proposed State bill Relating to Registration of Vehicles, be transmitted to the Hawaii State Association of Counties with recommendation for inclusion in the 2021 Hawaii State Association of Counties Legislative Package. BE IT FINALLY RESOLVED, that a certified copy of this Resolution shall be transmitted to the President of the HSAC Executive Committee. Introduced by: MASON K. CHOCK V:\RESOLUTIONS\2018-2020 TERM\Relating To Registration Of Vehicles CNT_dmc.docx e Pap exruoeb Reruzeb Arun X� ebock X Coinben X fbghn X Ragawa X Rancobiro X Ruaii`i X Total 6 0 1- 0 certifieate Of z(bopti.on Ve berebp certifp that Resolution ,moo. 2020-34 Wo abopteb by tl)e Council of the Countp of RRaua`i, 6tate of J�aWai`i, X-ibu`e, Raua`i, 3baWai`i, on August 19, 2020 ountp Clerk �Dateb August 19, 2020 aU(A� Cbairma & pregibing (Officer *Beginning with the March 11, 2020 Council Meeting and until further notice, Councilmember Arthur Brun will not be present due to U.S. v. Arthur Brun et al., Cr. No. 20-00024-DKW (United States District Court), and therefore will be noted as excused (i.e., not present). Exhibit A JUSTIFICATION SHEET PROPOSER: Hawaii State Association of Counties (HSAC) & County of Kauai TITLE: A Bill for an Act Relating to Registration of Vehicles PURPOSE: This proposed Bill for an Act enhances the vehicle transfer process by requiring both the transferor and transferee to appear in person to execute the transfer which will protect both parties from fraud and ensure that the County keeps current and accurate records of vehicle transfers and ownership. MEANS: Amends Section 286-52 of the Hawaii Revised Statutes (HRS) JUSTIFICATION: Buyers often provide false, unreadable, or unusable contact information to sellers for the Notice of Transfer document, and then fail to register the vehicle under the buyer's name. Sellers sometimes provide fraudulent information to the Counties regarding a staged transfer of a vehicle to an unidentifiable buyer; some use this method to absolve themselves of any responsibility in the proper disposal of an unwanted vehicle. There is loss of tax revenue when buyers do not register a vehicle under their name and also when a vehicle is dumped, and the County has no means of properly identifying and tracking down the new owner of the vehicle. Buyers are subject to fraud when they purchase a vehicle from a seller who has not disclosed unpaid taxes, fraudulent registration stickers or other pertinent vehicle information to the buyer. Sellers are subject to law enforcement inquiries when the buyer does not register the vehicle under the buyer's name. Vehicles that are not properly registered under the new owner's name are frequently tax delinquent. These vehicles are also used for, and provide a special opportunity for other criminal activity. It is difficult for law enforcement to identify and locate someone who allegedly bought or acquired a vehicle, but did not provide accurate contact information to the seller. These circumstances embroil the original owner, whether innocent or guilty, in the ensuing criminal investigations. Both parties will be better protected from fraud with this Bill and it will help Counties keep current and accurate records of vehicle transfers and ownership. Exhibit.A A BILL FOR AN ACT RELATING TO REGISTRATION OF VEHICLES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: 1 SECTION 1. Section 286-52, Hawai`i Revised Statutes, is Z amended to read as follows: 3 "§286-52 Procedure when title of vehicle transferred; 4 delivery of certificate mandatory. (a) [Upen a transfer et] When 5 transferring the title or interest of a legal owner in or to a 6 vehicle registered under this part, the person whose title or 7 8 9 10 11 12 13 14 15 16 17 interest is to be transferred and the transferee shall write their signatures with pen and ink upon the certificate of ownership issued for the vehicle, together with the address of the transferee in the appropriate space provided upon the certificate[—.], and shall both appear in person before a clerk at the respective County Department of Motor Vehicles to execute such transfer. If the transferor is not available to appear in person the transferor shall complete the certificate of ownership, together with the notice of transfer, and sign the certificate of ownership before a Notary in anv State within the United States. The transferee and the transferor's 18 representative shall both appear in person and present the Exhibit A 1 notarized document at the County Department of Motor Vehicles 2 when transferring such title to the transferee. 3 (b) Within thirty calendar days [thereafter, th-e 4 $tea n s f ere e—shall fe-naid the eer-tifie a t-e---ems e wn e r ship—s e 5 6 7 efflee In the State, tie app!4eable-peg eci shall be s4:xty days-] 8 of the date on the notice of transfer, the transferor or 9 representative along with the transferee will abide by the rules 10 set forth in Subsection (a) Whenever a [tVansfeE^^] transferor 11 fails to comply with these provisions, the director of finance 12 shall charge a fee of $50, in addition to the fee provided in 13 section 286-51[, fer a new eez-,-tlfieate e 14 (c) Subsection [(b),] (a), requiring a [tzansfer-ee to 15 f eaEiiaLcd] transferor to personally deliver the certificate of 16 ownership after endorsement to the director of finance, shall 17 not apply [fie] in the event that the transferee of a vehicle who 18 was not intending to and does not drive the vehicle or permit 19 the vehicle to be driven upon the public highways, but every 20 such transferee, upon transferring the transferee's interest or 21 title to another, shall give notice of the transfer to the 22 director of finance and endorse the certificate of ownership to 23 the new legal owner and the certificate of registration to the �xniuiL t� I new owner; provided that if the director of finance has 2 ascertained as of the date of the application that the 3 registered owner has not deposited or paid bail with respect to 4 any summons or citation issued to the registered owner for 5 stopping, standing, or parking in violation of traffic 6 ordinances within the county, the director may require, as a 7 condition precedent to the transfer, that the registered owner 8 deposit or pay bail with respect to all such summons or 9 citations. 10 (d) The director of finance, upon receipt of the 11 certificate of ownership properly endorsed, shall register the 12 vehicle, and shall issue to the owner and legal owner entitled 13 thereto by reason of the transfer a new certificate of 14 registration and the certificate of ownership, respectively, in 15 the manner and form hereinabove provided for original 16 registration. 17 (e) Until the director of finance has issued the new 18 certificate of registration and certificate of ownership as in 19 subsection (d) provided, delivery of such vehicle shall be 20 deemed not to have been made and title thereto shall be deemed 21 not to have passed, and the intended transfer shall be deemed to 22 be incomplete and not to be valid or effective for any purpose, 23 notwithstanding any provision of the Uniform Commercial Code; 11 Exhibit A 1 provided that a security interest in a motor vehicle shall be 2 perfected as provided in the Uniform Commercial Code, section 3 490:9-311 and that the validity, attachment, priority, and 4 enforcement of such security interest shall be governed by 5 Article 9 of the Code. 6 (f) In the event of the transfer by operation of law of 7 the title or interest of a legal owner in and to a vehicle 8 registered under this part, as upon inheritance, devise, or 9 bequest, order in bankruptcy, or insolvency, execution sale, 10 repossession upon default in performance of the terms of a lease 11 or executory sales contract, or otherwise than by the voluntary 12 act of the person whose title or interest is so transferred, the 13 certificate of ownership shall be signed upon the spaces 14 provided by the personal representative, receiver, trustee, 15 sheriff, or other representative, or successor in interest of 16 the person whose title or interest is so transferred in lieu of 17 such person. Every personal representative, receiver, trustee, 18 sheriff, or other representative hereinabove referred to shall 19 file with the director of finance a notice of any transfer by 20 sale, lease, or otherwise by such person, of any such vehicle, 21 together with evidence satisfactory to the director of finance 22 of all facts entitling such representative to make the 23 transfer. Upon notice given to the director of finance that .L' Xn1D1L 1-1 1 transfer by operation of law of the title or interest of a legal 2 owner or a registered owner has been effected pursuant to any 3 provision of law, the director of finance shall send to the 4 legal owner or the registered owner or both a notice by 5 registered mail of such action and requesting the delivery to 6 the director of finance of the certificate of ownership or the 7 certificate of registration, as the case may be, within ten days 8 after date of mailing of the notice, and any person who refuses 9 or neglects to deliver the same to the director of finance 10 pursuant to the notice shall be guilty of a misdemeanor and 11 shall be punished as provided in section 286-61. 12 (g) Nothing in the foregoing subsections shall prevent a 13 legal owner from assigning the title or interest in or to a 14 vehicle registered under this part to another legal owner at any 15 time without the consent of and without affecting the interest 16 of the holder of the certificate of registration thereof. Upon 17 filing with the director of finance of a certificate of 18 ownership endorsed by the legal owner and a transferee of legal 19 ownership, the director of finance shall, whether the 20 certificate of registration has expired or not, enter the name 21 of the new legal owner upon the records of the director's office 22 and shall forthwith issue a new certificate of ownership to the 23 new legal owner in the form for original registration. Upon so Exhibit A 1 doing, the director of finance shall send to the registered 2 owner a notice by mail of the action. 3 (h) Any person who refuses or neglects to deliver a 4 certificate of ownership to a transferee entitled thereto under 5 this part, shall be punished as provided in section 286-61. 6 (i) Every dealer, upon transferring a motor vehicle, 7 whether by sale, lease, or otherwise, shall immediately give 8 notice of the transfer to the director of finance upon the 9 official form provided by the director of finance. Every such 10 notice shall contain the date of the transfer, the names and 11 addresses of the transferor and transferee, and such description 12 of the vehicle as may be called for in the official form. 13 [-(j ) Everypersen,o-the,- than a—Qealer, upen—transferring—a 14 meter sale, —lease, h e r-w l s e v ehiele, whether-b y er- e-t , shall 15 within tdes—g i�o-e- t-i-e f the f t t h die t e n e e --fir-airs e r- o e- e e r -e- 16 17 the , 18 19 20 21 net me Ee- than 22 [ { -] (j ) Whenever [the EeglsteLaed owner- eft--aeter 23 vehicle ems] any licensed dealer has given notice to the director Exhib it A 1 of finance of a transfer of the title or interest in the motor 2 vehicle, as provided in subsection (i) [9E (j)], and has 3 delivered the certificate of ownership bearing the transferor's 4 signature to the transferee as required by subsection (a), the 5 transferor shall be relieved from any liability, civil or 6 criminal, from the date the transferor delivers the motor 7 vehicle into the transferee's possession, which the transferor 8 might otherwise subsequently incur by reason solely of being the 9 registered owner of the vehicle. 10 [+1+](k) A licensed dealer who has forwarded a properly 11 endorsed certificate of ownership to the director of finance 12 shall be relieved of any civil liability, from the date the 13 transferor delivers the motor vehicle into the transferee's 14 possession, which the transferor might otherwise subsequently 15 incur by reason solely of being the registered owner of the 16 vehicle; provided that a specific written authorization to 17 forward the certificate has been obtained from the transferee. 18 [4+ft4-](1) Any person who falsely or fraudulently gives 19 notice to the director of finance of a transfer of title or 20 interest in a motor vehicle shall be subject to the penalty 21 provided in section 286-61." 22 SECTION 2. Statutory material to be repealed is 23 bracketed and stricken. New statutory material is underscored. Exhibit A SECTION 3. approval. 4 This Act shall INTRODUCED BY: take effect upon its Exhibit A Report Title: Registration of Vehicles; Procedure when title of vehicle transferred; delivery of certificate mandatory Description: This proposed Bill for an Act enhances the vehicle transfer process by requiring both the transferor and transferee to appear in person to execute the transfer which will protect both parties from fraud and ensure that Counties keeps current and accurate records of vehicle transfers and ownership. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.