HB 2596 Summary

• Establishes the Uniform Certificate of Title for Vessels Act effective July 1, 2018, requiring vessel owners to apply for state certificates of title within 20 days of ownership transfer or when Hawaii becomes the state of principal use.

• Exempts documented vessels, foreign documented vessels, barges, vessels under construction, and vessels held by dealers from titling requirements.

• Requires applications to include vessel owner information, hull identification number, vessel description, security interests, title brands, and transfer details, with supporting documentation such as previous certificates of title or bills of sale.

• Creates electronic and written certificate of title options managed by the Department of Land and Natural Resources, with 60-day processing timeframes and provisions for rejection based on incomplete applications or fraud indicators.

• Establishes procedures for perfecting security interests, terminating security interests, transferring vessel ownership, replacing lost certificates, and provides buyer protections for purchasers in ordinary course of business.