SB 2974 - Uniform Certificate of Title for Vessels Act

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

• Creates requirements for certificate of title applications, including vessel identification numbers, owner and secured party information, vessel descriptions, title brands, and hull damage disclosures.

• Authorizes the Department of Land and Natural Resources to issue electronic or written certificates of title and maintain searchable records indexed by hull identification number, vessel number, and owner name.

• Specifies procedures for perfecting security interests in vessels through delivery of applications to the department and establishes priority rules for secured parties, purchasers, and lien creditors.

• Exempts documented vessels, foreign documented vessels, barges, vessels under construction, and dealer inventory from title requirements, and establishes a $1,000 administrative penalty for owners failing to disclose hull damage.