§286-53 Dealers in new motor vehicles. (a) A manufacturer of or dealer in new motor vehicles having an established place of business, owning any such new vehicles and operating them upon the public highways, in lieu of registering each such new vehicle, may make application upon an official form provided for that purpose to the director of finance for a permanent number plate.

(b) Every new vehicle owned or controlled by the manufacturer or dealer, and permitted to be registered under a permanent number plate shall be regarded as registered thereunder until the vehicle is sold and the sale has been recorded by the director of finance.

(c) The director of finance shall, upon receipt of the application, or thereafter, furnish to the manufacturer or dealer:

(1) Permanent number plates which shall be attached to new motor vehicles which are used by the applicant only for demonstration of the new motor vehicles to customers upon the public highways if requested by the applicant. The price of each permanent number plate shall be established by the director of finance under chapter 91. Each permanent number plate shall display upon it the number which is assigned to the applicant and a different letter or number to differentiate it from other plates furnished to the applicant. Permanent number plates which are detached from a new motor vehicle which has been sold may be used on another new motor vehicle; and

(2) Temporary motor vehicle plates, if the applicant is a new motor vehicle dealer, which plates shall be blank except for an area on the lower right corner which shall be utilized for validation of the temporary plates. The validation shall not be reproducible by any person other than the director of finance, or director of finance of another county if an agreement is made to utilize a uniform validation, shall signify the official status of the temporary number plate, and be designed to be visible from a distance of two feet.

The directors of finance of any two or more counties may agree to utilize a uniform designation to be placed upon the temporary number plate. The director of finance shall establish the material used for the temporary number plate and a charge by rule under chapter 91 for each temporary number plate.

(d) Whenever the design of the number plates issued under chapter 249 is changed, the new motor vehicle dealer shall apply to the director of finance for the most current permanent number plates. Before issuing the current permanent number plates, the director of finance shall require each applicant to return the permanent number plates issued previously. If any permanent number plates issued previously have been lost or destroyed, the manufacturer or dealer who applies for the permanent number plates shall certify in writing to the director of finance that the permanent number plates have been lost or destroyed and that if any lost permanent number plates are found, they shall be returned forthwith to the director of finance. Upon receipt of the certificate, the director of finance shall issue an equal number of the most current permanent number plates as have been certified to be lost or destroyed.

(e) Whenever a new motor vehicle dealer sells a new motor vehicle to a person, the new motor vehicle dealer shall detach the permanent number plate issued under subsection (c) from that new motor vehicle and replace it with one temporary number plate. The temporary number plate shall be attached to the rear of the vehicle in the same location as required for number plates under section 249-7. The new motor vehicle dealer shall print only the following upon the temporary number plate:

(1) The date that is thirty working days after the date the new owner takes possession of the motor vehicle, which date shall be placed in the middle of the temporary number plate in numbers not less than four inches in height;

(2) The name and address of the new owner;

(3) The name and address of the new motor vehicle dealer;

(4) The serial number of the new motor vehicle; and

(5) The date the new motor vehicle owner took possession of the motor vehicle.

Any temporary number plate upon which is placed any drawings, pictures, or words other than what is required by paragraphs (1) through (5), shall be invalid.

The information required by paragraphs (3) through (5) shall be printed in the upper left corner of the temporary number plate.

The temporary number plate shall be valid through the date listed in paragraph (1).

Any person who operates a motor vehicle with an expired temporary number plate shall be fined not more than $500. Any new motor vehicle dealer who prepares an invalid temporary number plate shall be fined not more than $500.

(f) No manufacturer or dealer shall permit the operation of any motor vehicle owned or controlled by the manufacturer or dealer upon any public highway, unless permanent number plates assigned to the manufacturer or dealer are attached thereto, in the manner specified in this part; provided that the new vehicles may be operated without permanent number plates attached thereto on the initial continuous movement from the place of entry of the vehicle into this State to the warehouse, storeroom, salesroom, or other place of business selected by the manufacturer or dealer.

(g) Every manufacturer or dealer, upon the sale, lease, or other transfer by the manufacturer or dealer of a new vehicle registered under a general distinguishing number, as herein provided, shall forthwith give notice of the transfer to the director of finance upon the appropriate official form, stating the date of the transfer, a description of the vehicle, the name and post office address of the transferee, and certifying that temporary number plates have been provided for the motor vehicle of the transferee.

Following the transfer, if application for registration has been made by or on behalf of the transferee, the vehicle may be operated until duly registered by the director of finance under chapter 249 and this chapter or until the expiration of the temporary number plates whichever occurs sooner.

(h) The director of finance may, at the director's discretion, grant a temporary permit to operate a vehicle, a registration for which has been applied for.

(i) For the purposes of this section:

(1) "New motor vehicles" means motor vehicles of the current model year, immediate past model year, or the next model year which have not been sold or registered by the manufacturer or dealer;

(2) "New motor vehicle dealer" means a dealer licensed under chapter 437 to engage in the business of selling at wholesale or retail or both, new motor vehicles or used motor vehicles;

(3) "Permanent number plate" means a number plate furnished to a manufacturer or dealer under subsection (c)(1) for a motor vehicle which is similar to the number plate issued under section 249-7 and which allows the motor vehicle to be operated on the public highways; and

(4) "Temporary number plate" means the number plate furnished to a new motor vehicle dealer under subsection (c)(2). [L 1929, c 197, §9; RL 1935, §2672; am L 1941, c 211, §1; RL 1945, §7343; am L 1949, c 162, §2; am L 1953, c 131, §1(f); RL 1955, §160-11; am L 1967, c 92, §1; HRS §286-53; am L 1980, c 133, §4; gen ch 1985; am L 1987, c 319, §1; am L 1990, c 131, §2; am L 1995, c 24, §1]