Bill Text: HI SB1272 | 2025 | Regular Session | Amended

Hawaii Senate Bill 1272

Bill Title: Relating To Towing.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-02-14 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to JDC/WAM. [SB1272 Detail]

Download: Hawaii-2025-SB1272-Amended.html

THE SENATE	S.B. NO.	1272
THIRTY-THIRD LEGISLATURE, 2025		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO TOWING.

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

SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

tOWING OPERATIONS

§ -1 Definitions. As used in this chapter, unless the context otherwise requires:

"Authority" means the towing authority established under section -3.

"Department" means the department of transportation.

"Motor vehicle" shall have the same meaning as in section 291C-1.

"Towing" means the removal of a motor vehicle from any location by using a tow truck or similar equipment and without the consent of the owner or operator of the motor vehicle. The act of parking a vehicle at a location with or without any signs, shall not be considered consent of the owner or operator of the motor vehicle.

"Towing operation" means any business engaged in the business of towing.

§ -2 Towing license; required. It shall be unlawful to engage in the act of towing or vehicle immobilization without a valid towing license under this chapter.

§ -3 Towing authority; established. There is established within the department of transportation the towing authority. The towing authority shall issue towing licenses and regulate towing operations.

§ -4 Towing licenses; issuance. A towing license shall be issued by the authority upon application in the form and manner required by rule of the authority, and the payment of a fee of $ , and shall be renewable annually on July 1 for the twelve months ending the succeeding June 30. Each towing license shall have a unique number.

§ -5 Towing license; suspension, revocation. (a) The authority may suspend, revoke, or decline to renew any license issued under this chapter or deny an application for a license issued under this chapter whenever the authority finds that the applicant or licensee has failed to comply with this chapter or any rule adopted under this chapter, or for any other good cause. Good cause includes instances where an applicant or licensee has:

(1) Submitted a false or fraudulent application or provided a false statement in an application;

(2) Failed to comply with, violated, or been convicted of violating any county, state, or federal law directly pertaining to towing;

(3) Failed to maintain complete and accurate records when and if required to be kept;

(4) Failed to possess a license authorizing the towing operation to operate in the applicable county, if required;

(5) Used a device with the intent to immobilize a parked vehicle;

(6) If the towing operation transports motor vehicles to a facility held by the applicant or licensee and the applicant or licensee failed to open that facility during business hours and equip that facility with security features as required by the towing authority;

(7) Been convicted, or employs an individual who has been convicted, within the most recent five years of a criminal offense involving one or more of the following:

(A) Bodily injury or attempt to inflict bodily injury to another person;

(B) Theft of property or attempted theft of property; or

(8) Failed to maintain that each person operating a vehicle on behalf of the licensee has the appropriate license under chapter 286 for the operation of the applicable vehicle;

(9) Violated or failed to comply with any requirement under section 290-11, 290-41, 291C-135, 291C-165.5, or 437D-15(8);

(10) Failed to properly register a vehicle used by the licensee, display a valid number plate pursuant to section 249-7, or satisfy any vehicle weight requirement; and

(11) Violated any other law or rule adopted by the authority.

(b) Upon suspending or revoking any license, the authority may request that the licensee immediately surrender the license or any duplicate issued to or printed by the licensee, and the licensee shall surrender the license or duplicate promptly to the authority as requested.

(c) Whenever the authority suspends, revokes, or declines to renew a license, the authority shall notify the applicant or licensee immediately and afford the applicant or licensee a hearing, if requested; provided that a hearing has not already been afforded. The authority shall provide not less than thirty days' notice to the applicant or licensee of a hearing afforded under this subsection. After the hearing, the authority shall:

(1) Rescind its order of suspension;

(2) Continue the suspension;

(3) Revoke the license;

(4) Rescind its order of revocation;

(5) Decline to renew the license; or

(6) Renew the license.

§ -6 Penalties. Any person who violates this chapter or section 290-11(b)(1), (2), or (5) shall be fined not more than $ for each separate violation.

§ -7 Exclusions. This chapter shall not apply to any towing of a motor vehicle with the consent of the owner or operator of the motor vehicle.

§ -8 Rules. The authority or the department may adopt rules under chapter 91 for the purposes of this chapter."

SECTION 2. Section 46-1.5, Hawaii Revised Statutes, is amended to read as follows:

"§46-1.5 General powers and limitation of the counties. Subject to general law, each county shall have the following powers and shall be subject to the following liabilities and limitations:

(1) Each county shall have the power to frame and adopt a charter for its own self-government that shall establish the county executive, administrative, and legislative structure and organization, including but not limited to the method of appointment or election of officials, their duties, responsibilities, and compensation, and the terms of their office;

(2) Each county shall have the power to provide for and regulate the marking and lighting of all buildings and other structures that may be obstructions or hazards to aerial navigation, so far as may be necessary or proper for the protection and safeguarding of life, health, and property;

(3) Each county shall have the power to enforce all claims on behalf of the county and approve all lawful claims against the county, but shall be prohibited from entering into, granting, or making in any manner any contract, authorization, allowance payment, or liability contrary to the provisions of any county charter or general law;

(4) Each county shall have the power to make contracts and to do all things necessary and proper to carry into execution all powers vested in the county or any county officer;

(5) Each county shall have the power to:

(A) Maintain channels, whether natural or artificial, including their exits to the ocean, in suitable condition to carry off storm waters;

(B) Remove from the channels, and from the shores and beaches, any debris that is likely to create an unsanitary condition or become a public nuisance; provided that, to the extent any of the foregoing work is a private responsibility, the responsibility may be enforced by the county in lieu of the work being done at public expense;

(C) Construct, acquire by gift, purchase, or by the exercise of eminent domain, reconstruct, improve, better, extend, and maintain projects or undertakings for the control of and protection against floods and flood waters, including the power to drain and rehabilitate lands already flooded;

(D) Enact zoning ordinances providing that lands deemed subject to seasonable, periodic, or occasional flooding shall not be used for residence or other purposes in a manner as to endanger the health or safety of the occupants thereof, as required by the Federal Flood Insurance Act of 1956 (chapter 1025, Public Law 1016); and

(E) Establish and charge user fees to create and maintain any stormwater management system or infrastructure; provided that no county shall charge against or collect user fees from the department of transportation in excess of $1,500,000 in the aggregate per year; provided further that no services shall be denied to the department of transportation by reason of nonpayment of the fees;

(6) Each county shall have the power to exercise the power of condemnation by eminent domain when it is in the public interest to do so;

(7) Each county shall have the power to exercise regulatory powers over business activity as are assigned to them by chapter 445 or other general law;

(8) Each county shall have the power to fix the fees and charges for all official services not otherwise provided for;

(9) Each county shall have the power to provide by ordinance assessments for the improvement or maintenance of districts within the county;

(10) Except as otherwise provided, no county shall have the power to give or loan credit to, or in aid of, any person or corporation, directly or indirectly, except for a public purpose;

(11) Where not within the jurisdiction of the public utilities commission, each county shall have the power to regulate by ordinance the operation of motor vehicle common carriers transporting passengers within the county and adopt and amend rules the county deems necessary for the public convenience and necessity;

(12) Each county shall have the power to enact and enforce ordinances necessary to prevent or summarily remove public nuisances and to compel the clearing or removal of any public nuisance, refuse, and uncultivated undergrowth from streets, sidewalks, public places, and unoccupied lots. In connection with these powers, each county may impose and enforce liens upon the property for the cost to the county of removing and completing the necessary work where the property owners fail, after reasonable notice, to comply with the ordinances. The authority provided by this paragraph shall not be self-executing, but shall become fully effective within a county only upon the enactment or adoption by the county of appropriate and particular laws, ordinances, or rules defining "public nuisances" with respect to each county's respective circumstances. The counties shall provide the property owner with the opportunity to contest the summary action and to recover the owner's property;

(13) Each county shall have the power to enact ordinances deemed necessary to protect health, life, and property, and to preserve the order and security of the county and its inhabitants on any subject or matter not inconsistent with, or tending to defeat, the intent of any state statute where the statute does not disclose an express or implied intent that the statute shall be exclusive or uniform throughout the State;

(14) Each county shall have the power to:

(A) Make and enforce within the limits of the county all necessary ordinances covering all:

(i) Local police matters;

(ii) Matters of sanitation;

(iii) Matters of inspection of buildings;

(iv) Matters of condemnation of unsafe structures, plumbing, sewers, dairies, milk, fish, and morgues; and

(v) Matters of the collection and disposition of rubbish and garbage;

(B) Provide exemptions for homeless facilities and any other program for the homeless authorized by part XVII of chapter 346, for all matters under this paragraph;

(C) Appoint county physicians and sanitary and other inspectors as necessary to carry into effect ordinances made under this paragraph, who shall have the same power as given by law to agents of the department of health, subject only to limitations placed on them by the terms and conditions of their appointments; and

(D) Fix a penalty for the violation of any ordinance, which penalty may be a misdemeanor, petty misdemeanor, or violation as defined by general law;

(15) Each county shall have the power to provide public pounds; to regulate the impounding of stray animals and fowl, and their disposition; and to provide for the appointment, powers, duties, and fees of animal control officers;

(16) Each county shall have the power to purchase and otherwise acquire, lease, and hold real and personal property within the defined boundaries of the county and to dispose of the real and personal property as the interests of the inhabitants of the county may require, except that:

(A) Any property held for school purposes may not be disposed of without the consent of the superintendent of education;

(B) No property bordering the ocean shall be sold or otherwise disposed of; and

(C) All proceeds from the sale of park lands shall be expended only for the acquisition of property for park or recreational purposes;

(17) Each county shall have the power to provide by charter for the prosecution of all offenses and to prosecute for offenses against the laws of the State under the authority of the attorney general of the State;

(18) Each county shall have the power to make appropriations in amounts deemed appropriate from any moneys in the treasury, for the purpose of:

(A) Community promotion and public celebrations;

(B) The entertainment of distinguished persons as may from time to time visit the county;

(C) The entertainment of other distinguished persons, as well as, public officials when deemed to be in the best interest of the community; and

(D) The rendering of civic tribute to individuals who, by virtue of their accomplishments and community service, merit civic commendations, recognition, or remembrance;

(19) Each county shall have the power to:

(A) Construct, purchase, take on lease, lease, sublease, or in any other manner acquire, manage, maintain, or dispose of buildings for county purposes, sewers, sewer systems, pumping stations, waterworks, including reservoirs, wells, pipelines, and other conduits for distributing water to the public, lighting plants, and apparatus and appliances for lighting streets and public buildings, and manage, regulate, and control the same;

(B) Regulate and control the location and quality of all appliances necessary to the furnishing of water, heat, light, power, telephone, and telecommunications service to the county;

(C) Acquire, regulate, and control any and all appliances for the sprinkling and cleaning of the streets and the public ways, and for flushing the sewers; and

(D) Open, close, construct, or maintain county highways or charge toll on county highways; provided that all revenues received from a toll charge shall be used for the construction or maintenance of county highways;

(20) Each county shall have the power to regulate the renting, subletting, and rental conditions of property for places of abode by ordinance;

(21) Unless otherwise provided by law, each county shall have the power to establish by ordinance the order of succession of county officials in the event of a military or civil disaster;

(22) Each county shall have the power to sue and be sued in its corporate name;

(23) Each county shall have the power to:

(A) Establish and maintain waterworks and sewer works;

(B) Implement a sewer monitoring program that includes the inspection of sewer laterals that connect to county sewers, when those laterals are located on public or private property, after providing a property owner not less than ten calendar days' written notice, to detect leaks from laterals, infiltration, and inflow, any other law to the contrary notwithstanding;

(C) Compel an owner of private property upon which is located any sewer lateral that connects to a county sewer to inspect that lateral for leaks, infiltration, and inflow and to perform repairs as necessary;

(D) Collect rates for water supplied to consumers and for the use of sewers;

(E) Install water meters whenever deemed expedient; provided that owners of premises having vested water rights under existing laws appurtenant to the premises shall not be charged for the installation or use of the water meters on the premises;

(F) Take over from the State existing waterworks systems, including water rights, pipelines, and other appurtenances belonging thereto, and sewer systems, and to enlarge, develop, and improve the same; and

(G) For purposes of subparagraphs (B) and (C):

(i) "Infiltration" means groundwater, rainwater, and saltwater that enters the county sewer system through cracked, broken, or defective sewer laterals; and

(ii) "Inflow" means non-sewage entering the county sewer system via inappropriate or illegal connections;

(24) (A) Each county may impose civil fines, in addition to criminal penalties, for any violation of county ordinances or rules after reasonable notice and requests to correct or cease the violation have been made upon the violator. Any administratively imposed civil fine shall not be collected until after an opportunity for a hearing under chapter 91. Any appeal shall be filed within thirty days from the date of the final written decision. These proceedings shall not be a prerequisite for any civil fine or injunctive relief ordered by the circuit court;

(B) Each county by ordinance may provide for the addition of any unpaid civil fines, ordered by any court of competent jurisdiction, to any taxes, fees, or charges, with the exception of fees or charges for water for residential use and sewer charges, collected by the county. Each county by ordinance may also provide for the addition of any unpaid administratively imposed civil fines, which remain due after all judicial review rights under section 91-14 are exhausted, to any taxes, fees, or charges, with the exception of water for residential use and sewer charges, collected by the county. The ordinance shall specify the administrative procedures for the addition of the unpaid civil fines to the eligible taxes, fees, or charges and may require hearings or other proceedings. After addition of the unpaid civil fines to the taxes, fees, or charges, the unpaid civil fines shall not become a part of any taxes, fees, or charges. The county by ordinance may condition the issuance or renewal of a license, approval, or permit for which a fee or charge is assessed, except for water for residential use and sewer charges, on payment of the unpaid civil fines. Upon recordation of a notice of unpaid civil fines in the bureau of conveyances, the amount of the civil fines, including any increase in the amount of the fine which the county may assess, shall constitute a lien upon all real property or rights to real property belonging to any person liable for the unpaid civil fines. The lien in favor of the county shall be subordinate to any lien in favor of any person recorded or registered prior to the recordation of the notice of unpaid civil fines and senior to any lien recorded or registered after the recordation of the notice. The lien shall continue until the unpaid civil fines are paid in full or until a certificate of release or partial release of the lien, prepared by the county at the owner's expense, is recorded. The notice of unpaid civil fines shall state the amount of the fine as of the date of the notice and maximum permissible daily increase of the fine. The county shall not be required to include a social security number, state general excise taxpayer identification number, or federal employer identification number on the notice. Recordation of the notice in the bureau of conveyances shall be deemed, at [~~such~~] the time, for all purposes and without any further action, to procure a lien on land registered in land court under chapter 501. After the unpaid civil fines are added to the taxes, fees, or charges as specified by county ordinance, the unpaid civil fines shall be deemed immediately due, owing, and delinquent and may be collected in any lawful manner. The procedure for collection of unpaid civil fines authorized in this paragraph shall be in addition to any other procedures for collection available to the State and county by law or rules of the courts;

(C) Each county may impose civil fines upon any person who places graffiti on any real or personal property owned, managed, or maintained by the county. The fine may be up to $1,000 or may be equal to the actual cost of having the damaged property repaired or replaced. The parent or guardian having custody of a minor who places graffiti on any real or personal property owned, managed, or maintained by the county shall be jointly and severally liable with the minor for any civil fines imposed hereunder. Any [~~such~~] fine may be administratively imposed after an opportunity for a hearing under chapter 91, but such a proceeding shall not be a prerequisite for any civil fine ordered by any court. As used in this subparagraph, "graffiti" means any unauthorized drawing, inscription, figure, or mark of any type intentionally created by paint, ink, chalk, dye, or similar substances;

(D) At the completion of an appeal in which the county's enforcement action is affirmed and upon correction of the violation if requested by the violator, the case shall be reviewed by the county agency that imposed the civil fines to determine the appropriateness of the amount of the civil fines that accrued while the appeal proceedings were pending. In its review of the amount of the accrued fines, the county agency may consider:

(i) The nature and egregiousness of the violation;

(ii) The duration of the violation;

(iii) The number of recurring and other similar violations;

(iv) Any effort taken by the violator to correct the violation;

(v) The degree of involvement in causing or continuing the violation;

(vi) Reasons for any delay in the completion of the appeal; and

(vii) Other extenuating circumstances.

The civil fine that is imposed by administrative order after this review is completed and the violation is corrected shall be subject to judicial review, notwithstanding any provisions for administrative review in county charters;

(E) After completion of a review of the amount of accrued civil fine by the county agency that imposed the fine, the amount of the civil fine determined appropriate, including both the initial civil fine and any accrued daily civil fine, shall immediately become due and collectible following reasonable notice to the violator. If no review of the accrued civil fine is requested, the amount of the civil fine, not to exceed the total accrual of civil fine prior to correcting the violation, shall immediately become due and collectible following reasonable notice to the violator, at the completion of all appeal proceedings; and

(F) If no county agency exists to conduct appeal proceedings for a particular civil fine action taken by the county, then one shall be established by ordinance before the county shall impose the civil fine;

(25) Any law to the contrary notwithstanding, any county mayor, by executive order, may exempt donors, provider agencies, homeless facilities, and any other program for the homeless under part XVII of chapter 346 from real property taxes, water and sewer development fees, rates collected for water supplied to consumers and for use of sewers, and any other county taxes, charges, or fees; provided that any county may enact ordinances to regulate and grant the exemptions granted by this paragraph;

(26) Any county may establish a captive insurance company pursuant to article 19, chapter 431; and

(27) Each county shall have the power to enact and enforce ordinances regulating towing operations[.] that are more stringent than the requirements under state law."

SECTION 3. Section 46-20.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§46-20.5[]] Regulation of towing operations. (a) Any law to the contrary notwithstanding, the council of any county may adopt and provide for the enforcement of ordinances regulating towing operations, including but not limited to ordinances relating to rates, equipment standards, hours of operation, storage and safeguarding of towed vehicles, records retention and inspection, insurance requirements, vehicle operator requirements, and tax clearances; provided that an ordinance shall not be effective to the extent that it is inconsistent with any law or department of health rule governing solid waste salvage facilities.

(b) The council of any county shall not enact an ordinance that provides less consumer protections than state law."

SECTION 4. Section 291C-135, Hawaii Revised Statutes, is amended to read as follows:

"§291C-135 Tow trucks; signage and insurance requirements. Notwithstanding any other law to the contrary, the registered owner or lessee of a tow truck shall:

(1) Permanently affix on each door of the truck a sign with the name [~~and~~], telephone number, and towing license number issued under section -4 of the [~~tow business.~~] towing operation. The letters and numbers used in the sign shall be [no] not less than two inches in height; and

(2) Maintain insurance in the following amounts:

(A) Bodily injury of not less than $500,000;

(B) Property damage of not less than $200,000; and

(D) A combined single limit of liability of not less than $1,000,000,

to protect owners of towed vehicles in the event of vehicle loss or damage due to towing or bodily injury in the course of towing. If a [~~tow operator~~] registered owner or lessee of the tow truck fails to comply with the [~~insurance~~] requirements of this section, no charges, including storage charges, may be collected by the [~~tow operator~~] towing operation as a result of the tow or as a condition of the release of the towed vehicle. Any person, including the registered owner, lien holder, or insurer of the vehicle, who has been injured by the [~~tow operator's~~] the registered owner or lessee of the tow truck's failure to comply with this section [is] shall be entitled to sue for damages sustained. If a judgment is obtained by the plaintiff, the court shall award the plaintiff a sum of not less than $1,000 or threefold damages sustained by the plaintiff, whichever sum is greater, and reasonable attorney's fees and costs.

[~~This section shall not apply to a county that has adopted ordinances regulating towing operations.~~]"

SECTION 5. Section 507-73, Hawaii Revised Statutes, is amended to read as follows:

"[[]§507-73[]] Occupant in default; motor vehicle or boat removal. If an occupant is in default for sixty or more days and the personal property stored in the leased space is a motor vehicle or boat, the motor vehicle or boat shall be deemed to be left unattended on private property without authorization of the owner of the property and may be towed away, at the expense of the owner of the motor vehicle or boat; provided that for purposes of this section, a vehicle may be towed pursuant to section 290-11; provided further that [a]:

(1) If a motor vehicle is being towed, the motor vehicle shall be towed by a towing operation licensed under chapter ; and

(2) If a vessel is being towed, the towing company engaged pursuant to this section shall be a towing company registered in Hawaii.

At least fifteen days prior to having the motor vehicle or boat towed, the owner shall provide notice to the occupant, stating the name, address, and contact information of the towing operation or towing company, by certified mail at the occupant's last known postal address and by electronic mail at the occupant's last known electronic mail address.

For purposes of applying section 290-11 to this section, the term "vehicle" shall be deemed to correspond to the terms "motor vehicle" and "boat"."

SECTION 6. Sections 286-51(b)(2), 290-11, 291C-165.5, 431:10C-313(b)(2), Hawaii Revised Statutes, are amended by substituting the term "towing operation" where the terms "tow company" or "towing company" appears, as the context requires.

SECTION 7. Sections 290-11, 291C-136, and 291C-165.5(h), Hawaii Revised Statutes, are amended by substituting the term "towing operations" where the terms "tow companies" or "towing companies" appears, as the context requires.

SECTION 8. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment and operation of the towing authority.

The sums appropriated shall be expended by the department of transportation for the purposes of this Act.

SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect on July 1, 2050; provided that the towing license requirements under section 1 of this Act shall not be required until after June 30, 2026.

Report Title:

DOT; Towing Authority; Tow Trucks; Towing License; Towing operations; Vehicle Immobilization Devices; Appropriations

Description:

Requires towing truck operators to obtain a towing license. Establishes the Towing Authority within the Department of Transportation to issue towing licenses and regulate towing operations. Prohibits the act of vehicle mobilization without a valid towing license. Prohibits the counties from enacting ordinances that provide less consumer protections than state law. Appropriates funds. Effective 7/1/2050. (SD1)

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