THE SENATE	S.B. NO.	662
THIRTIETH LEGISLATURE, 2019		S.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO MOTOR VEHICLES.

 

 

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

PEER-TO-PEER MOTOR VEHICLE SHARING ORGANIZATIONS

     §   -1  Definitions.  As used in this chapter:

     "Lessee" means any person obtaining the use of a rental motor vehicle from a lessor for a period of six months or less under the terms of a peer-to-peer motor vehicle sharing agreement.

     "Lessor" means any person in the business of providing a rental motor vehicle to the public through a peer-to-peer motor vehicle sharing organization.

     "Manufacturer's recall" means a recall conducted pursuant to title 49 United States Code Sections 30118 and 30120.

     "Peer-to-peer motor vehicle sharing" means the authorized use of a motor vehicle by a person other than the vehicle's owner through a peer-to-peer motor vehicle sharing organization.

     "Peer-to-peer motor vehicle sharing agreement" means any written agreement setting forth the terms and conditions governing the use of the peer-to-peer vehicle by a lessee.

     "Peer-to-peer motor vehicle sharing organization" means a legal entity qualified to do business in the State engaged in the business of facilitating the use, rental, or sharing of a privately-owned passenger motor vehicle for noncommercial use by persons within the State.  This term does not include the registered owner of the vehicle involved in a peer-to-peer motor vehicle sharing agreement facilitated by a peer-to-peer motor vehicle sharing organization.

     "Recall database" means a database from which a person may obtain vehicle identification number specific manufacturer's recall information relevant to a specific vehicle, which includes but is not limited to a vehicle manufacturer's internet website for a specific vehicle's line-make, a vehicle manufacturer's internal system that provides information to its franchisees, or a commercially available vehicle history system.

     §   -2  Manufacturer's recall; requirements.  (a)  No later than forty-eight hours after receiving notice of a manufacturer's recall, or sooner if practicable, a lessor with a rental motor vehicle fleet of one or more vehicles shall not rent or lease or offer for rent or lease a vehicle subject to the manufacturer's recall until the lessor has made all repairs required under the manufacturer's recall.

     (b)  If a manufacturer's recall notice indicates that the remedy for the recall is not immediately available and specifies actions to temporarily repair the vehicle in a manner that eliminates the safety risk that prompted the manufacturer's recall, a lessor with a rental motor vehicle fleet of one or more vehicles shall not rent or lease or offer for rent or lease a vehicle subject to the manufacturer's recall until the lessor has made all temporary repairs required under the manufacturer's recall.  Once a permanent remedy for the vehicle becomes available to the lessor, the lessor shall not rent or lease the vehicle until the permanent repairs to the vehicle required under the manufacturer's recall are complete.

     (c)  As soon as practicable but not more than forty-eight hours after a manufacturer's recall notice has been issued by the manufacturer and appears in the recall database provided by the National Highway Traffic Safety Administration, or not more than forty-eight hours after a lessor receives notice of a manufacturer's recall by a third party with which the lessor contracts to provide notification of active recalls, a lessor shall not facilitate the rent or lease of a vehicle subject to the manufacturer's recall until all repairs required under the manufacturer's recall are complete and the vehicle no longer appears in the recall database provided by the National Highway Traffic Safety Administration."

     SECTION 2.  Chapter 437D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§437D‑    Manufacturer's recall; requirements.  (a)  No later than forty-eight hours after receiving notice of a manufacturer's recall, or sooner if practicable, a lessor shall not rent or lease or offer for rent or lease a vehicle subject to the manufacturer's recall until the lessor has made all repairs required under the manufacturer's recall.

     (b)  If a manufacturer's recall notice indicates that the remedy for the recall is not immediately available and specifies actions to temporarily repair the vehicle in a manner that eliminates the safety risk that prompted the manufacturer's recall, a lessor shall not rent or lease or offer for rent or lease a vehicle subject to the manufacturer's recall until the lessor has made all temporary repairs required under the manufacturer's recall.  Once a permanent remedy for the vehicle becomes available to the lessor, the lessor shall not rent or lease the vehicle until the permanent repairs to the vehicle required under the manufacturer's recall are complete.

     (c)  As soon as practicable but not more than forty-eight hours after a manufacturer's recall notice has been issued by the manufacturer and appears in the recall database provided by the National Highway Traffic Safety Administration, or not more than forty-eight hours after a lessor receives notice of a manufacturer's recall by a third party with which the lessor contracts to provide notification of active recalls, a lessor shall not facilitate the rent or lease of a vehicle subject to the manufacturer's recall until all repairs required under the manufacturer's recall are complete and the vehicle no longer appears in the recall database provided by the National Highway Traffic Safety Administration.

     (d)  For purposes of this section:

     "Manufacturer's recall" means a recall conducted pursuant to title 49 United States Code sections 30118 and 30120.

     "Recall database" means a database from which a person may obtain vehicle identification number specific manufacturer's recall information relevant to a specific vehicle, which includes but is not limited to a vehicle manufacturer's internet website for a specific vehicle's line-make, a vehicle manufacturer's internal system that provides information to its franchisees, or a commercially available vehicle history system."

     SECTION 3.  Section 251-1, Hawaii Revised Statutes, is amended as follows:

     1.  By adding three new definitions to be appropriately inserted and to read:

     ""Peer-to-peer motor vehicle sharing" means the authorized use of a motor vehicle by a person other than the vehicle's owner through a peer-to-peer motor vehicle sharing organization.

     "Peer-to-peer motor vehicle sharing agreement" means any written agreement setting forth the terms and conditions governing the use of the peer-to-peer vehicle by a lessee.

     "Peer-to-peer motor vehicle sharing organization" means a legal entity qualified to do business in the State engaged in the business of facilitating the use, rental, or sharing of a privately-owned passenger motor vehicle for noncommercial use by persons within the State.  This term does not include the registered owner of the vehicle involved in a peer-to-peer motor vehicle sharing agreement facilitated by a peer-to-peer motor vehicle sharing organization."

     2.  By amending the definition of "lessor" to read:

     ""Lessor" means any person in the business of providing a rental motor [vehicles] vehicle to the public[.], and shall include peer-to-peer motor vehicle sharing organizations.  "Lessor" shall not include the registered owner of a vehicle involved in a peer-to-peer motor vehicle sharing agreement facilitated by a peer-to-peer motor vehicle sharing organization."

     SECTION 4.  Section 251-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Each person, as a condition precedent to engaging or continuing in [the]:

     (1)  The business of providing rental motor vehicles to the public[, engaging or continuing in the];

     (2)  The tour vehicle operator business[, or engaging or continuing in a];

     (3)  A car-sharing organization business; or

     (4)  A peer-to-peer motor vehicle sharing organization business pursuant to chapter    ,

shall register with the director.  A person required to so register shall make a one-time payment of $20, upon receipt of which the director shall issue a certificate of registration in [such] a form as the director determines, attesting that the registration has been made.  The registration shall not be transferable and shall be valid only for the person in whose name it is issued and for the transaction of business at the place designated therein.  The registration, or in lieu thereof a notice stating where the registration may be inspected and examined, shall at all times be conspicuously displayed at the place for which it is issued."

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2050.

 

Report Title:

Motor Vehicles; Manufacturer's Recall; Requirements; Peer-to-Peer Motor Vehicle Sharing; Taxation

 

Description:

Prohibits vehicle lessors from renting, leasing, or offering for rent or lease, vehicles subject to a manufacturer's recall, until appropriate repairs are made.  Defines peer-to-peer vehicle sharing related terms.  Requires persons in the peer-to-peer vehicle sharing organization business to register with the director of taxation.  Effective 7/1/2050.  (SD2)

 

 

 

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