(a) Unless subsection (c) applies, at or before the time the owner of record transfers an ownership interest in a hull-damaged vessel that is covered by a certificate of title created by the department, if the damage occurred while that person was an owner of the vessel and the person has notice of the damage at the time of the transfer, the owner shall:

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Terms Used In Hawaii Revised Statutes 200A-10

  • Certificate of title: means a record, created by the department under this chapter or by a governmental agency of another jurisdiction under the law of that jurisdiction, that is designated as a certificate of title by the department or agency and is evidence of ownership of a vessel. See Hawaii Revised Statutes 200A-2
  • Department: means the department of land and natural resources. See Hawaii Revised Statutes 200A-2
  • Hull damaged: means compromised with respect to the integrity of a vessel's hull by a collision, allision, lightning strike, fire, explosion, running aground, or similar occurrence, or the sinking of a vessel in a manner that creates a significant risk to the integrity of the vessel's hull. See Hawaii Revised Statutes 200A-2
  • Owner: means a person that has legal title to a vessel. See Hawaii Revised Statutes 200A-2
  • Owner of record: means the owner indicated in the department's files or, if the files indicate more than one owner, the owner indicated first. See Hawaii Revised Statutes 200A-2
  • Person: means an individual; corporation; business trust; estate; trust; statutory trust; partnership; limited liability company; association; joint venture; public corporation; government or governmental subdivision, agency, or instrumentality; or any other legal or commercial entity. See Hawaii Revised Statutes 200A-2
  • Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. See Hawaii Revised Statutes 200A-2
  • Title brand: means a designation of previous damage, use, or condition that shall be indicated on a certificate of title. See Hawaii Revised Statutes 200A-2
  • Vessel: means any watercraft used or capable of being used as a means of transportation on water, except:

    (1) An amphibious vehicle for which a certificate of title is issued pursuant to part III of chapter 286 or a similar statute of another state;
    (2) A watercraft less than eight feet in length and propelled solely by sail, paddle, oar, or an engine of less than ten horsepower;
    (3) A watercraft that operates only on a permanently fixed, manufactured course and the movement of which is restricted to or guided by means of a mechanical device to which the watercraft is attached or by which the watercraft is controlled;
    (4) A stationary floating structure that:
    (A) Does not have and is not designed to have a mode of propulsion of its own;
    (B) Is dependent for utilities upon a continuous utility hookup to a source originating on shore; and
    (C) Has a permanent, continuous hookup to a shoreside sewage system;
    (5) A watercraft owned by the United States; a state; a foreign government; or a political subdivision of the United States, a state, or a foreign government; and
    (6) A watercraft used solely as a lifeboat on another watercraft. See Hawaii Revised Statutes 200A-2
(1) Deliver to the department an application for a new certificate that complies with § 200A-7 and includes the title brand designation “Hull Damaged”; or
(2) Indicate on the certificate in the place designated for that purpose that the vessel is hull damaged and deliver the certificate to the transferee.
(b) No later than twenty days after delivery to the department of the application under subsection (a)(1) or the certificate of title under subsection (a)(2), the department shall create a new certificate that indicates that the vessel is branded “Hull Damaged”.
(c) Before an insurer transfers an ownership interest in a hull damaged vessel that is covered by a certificate of title created by the department, the insurer shall deliver to the department an application for a new certificate that complies with § 200A-6 and includes the title brand designation “Hull Damaged”. No later than twenty days after delivery of the application to the department, the department shall create a new certificate that indicates that the vessel is branded “Hull Damaged”.
(d) An owner of record that fails to comply with subsection (a), a person that solicits or colludes in a failure by an owner of record to comply with subsection (a), or an insurer that fails to comply with subsection (c) shall be subject to an administrative penalty of $1,000.