REPORT TITLE:
Motor Vehicle Tire Tax

DESCRIPTION:
This bill imposes a one dollar tax on each tire sold in Hawaii.
The bill also requires businesses in the tire industry to keep
records so that the State can monitor tire transactions and
thereby enforce laws prohibiting the illegal dumping of tires.


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2538
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO MOTOR VEHICLE TIRES.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 342I, Hawaii Revised Statutes, is
 
 2 amended by adding eleven new sections to part II to be
 
 3 appropriately designated and to read as follows:
 
 4      "§342I-A  Registration and recordkeeping requirements.
 
 5 (a)  All facilities that accept used tires, including but not
 
 6 limited to tire retailers, wholesalers, transporters, collectors,
 
 7 and recyclers, shall maintain, for a minimum of three years,
 
 8 records that provide, at least, the following information:
 
 9      (1)  The name, phone number, and address of the person,
 
10           company, business, source, or entity from whom the used
 
11           tires were received, if receiving used tires from
 
12           entities other than the general public, such as tire
 
13           retailers, wholesalers, transporters, collectors, and
 
14           recyclers;
 
15      (2)  The date of receipt of the used tires;
 
16      (3)  The quantity of used tires received; and
 
17      (4)  The record of shipment indicating:
 
18           (A)  The ultimate destination of the used tires;
 
19           (B)  The identification of the transporter;
 
20           (C)  The date of shipment; and
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           (D)  The quantity of tires shipped.
 
 2      (b)  A summary of the information maintained under
 
 3 subsection (a) of this section shall be submitted to the
 
 4 department by July 31 of each year, listing:
 
 5      (1)  The total quantity of used tires collected; and
 
 6      (2)  The ultimate disposition of the used tires.
 
 7      (c)  By September 1, 2000, all motor vehicle tire importers
 
 8 operating within the State shall register with the department,
 
 9 using forms prescribed by the department, and shall notify the
 
10 department of any change in address.  After September 1, 2000,
 
11 any person who desires to conduct business in this State as a
 
12 motor vehicle importer shall register with the department no
 
13 later than one month prior to the commencement of the business.
 
14      (d)  All motor vehicle tire importers shall maintain records
 
15 reflecting the importation of tires.  The records shall be made
 
16 available, upon request, for inspection by the department.
 
17      §342I-B  Motor vehicle tire surcharge.  There is established
 
18 a motor vehicle tire surcharge on tires imported into the State
 
19 on or after October 1, 2000 and up to and including December 31,
 
20 2005.  The motor vehicle tire surcharge shall be $1 per tire
 
21 imported into the State, and shall include those tires imported
 
22 on motor vehicles.  The surcharge shall be paid by the person or
 
23 entity who imports the motor vehicle tire, including importers of
 
24 motor vehicles.
 

 
Page 3                                                     2538
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      §342I-C  Tire inventory record and payment.  (a)  Payment of
 
 2 the motor vehicle tire surcharge shall be made quarterly based on
 
 3 inventory reports of the motor vehicle tire importers, except for
 
 4 those importers subject to subsection (c) or (d).  The dates,
 
 5 March 31, June 30, September 30, and December 31, represent the
 
 6 end of each quarter period.  All motor vehicle tire importers
 
 7 shall submit to the department documentation in sufficient detail
 
 8 that identifies the number of tires imported to the State and
 
 9 sold or distributed, during the previous quarter.
 
10      (b)  The amount due from tire importers for the quarter
 
11 shall be equal to the number of tires provided in subsection (a)
 
12 multiplied by the motor vehicle tire surcharge of $1.  Payment
 
13 shall be made by check or money order payable to the "Department
 
14 of Health, State of Hawaii".  All subsequent inventory reports
 
15 and payments shall be made not later than the last day of the
 
16 month following the end of the previous calendar quarter, except
 
17 for those importers subject to subsection (d).
 
18      (c)  A motor vehicle importer who imports less than fifty
 
19 tires within a one-year period shall be exempt from payment of
 
20 the surcharge.
 
21      (d)  A motor vehicle tire importer who imports fifty or more
 
22 tires, but less than or equal to two hundred tires, shall be
 
23 permitted to provide a report and payment of the surcharge
 
24 annually, with year ending December 31, rather than quarterly.
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      §342I-D  Deposit into environmental management special fund.
 
 2 The surcharge collected pursuant to this section shall be
 
 3 deposited into a special account in the environmental management
 
 4 special fund.  All interest earned or accrued on moneys deposited
 
 5 in the fund shall become part of the fund.  Moneys from this
 
 6 special account may be used to:
 
 7      (1)  Support permitting, monitoring, and enforcement
 
 8           activities of used tire management, collection,
 
 9           recycling and disposal facilities;
 
10      (2)  Promote tire recovery, recycling, and reuse in Hawaii
 
11           through education, research and demonstration projects;
 
12      (3)  Implement the surcharge program under this part;
 
13      (4)  Support illegal dumping prevention programs; and
 
14      (5)  Cleanup improper tire disposal sites including
 
15           conducting related environmental assessments and
 
16           remediation.
 
17      §342I-E  Recovery of costs.  (a)  Any costs incurred and
 
18 payable from the fund as a result of tire cleanups and associated
 
19 environmental assessments and remediation, shall be recovered by
 
20 the attorney general, upon the request of the department, from
 
21 the liable person or person.  The amount of any cost, which may
 
22 be recovered pursuant to this section for a tire cleanup and
 
23 associated assessment and remedial action paid from the fund
 
24 shall include the amount paid from the fund and legal interest.
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (b)  Moneys recovered by the attorney general pursuant to
 
 2 this section shall be deposited into the account of the fund.
 
 3      (c)  Any action for recovery of response costs must commence
 
 4 within two years after the date of completion of all response
 
 5 actions.
 
 6      §342I-F  Liability.  Notwithstanding any provision or rule
 
 7 of law:
 
 8      (1)  The owner or operator or both of a facility;
 
 9      (2)  Any person who at the time of disposal of any tires
 
10           owned or operated any facility at which such tires were
 
11           disposed;
 
12      (3)  Any person who by contract, agreement, or otherwise
 
13           arranged for disposal or recycling, or arranged with a
 
14           transporter for transport for disposal or recycling, of
 
15           tires owned or possessed by such person, by any other
 
16           party or entity, at any facility owned or operated by
 
17           another party or entity and containing such tires; and
 
18      (4)  Any person who accepts or accepted any tires for
 
19           transport to disposal or recycling facilities or sites
 
20           selected by such person, from which there is an illegal
 
21           disposal or associated release, or a threatened
 
22           release, which causes the incurrence of response costs;
 

 
 
 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 shall be strictly liable for all costs of removal, environmental
 
 2 assessment, or for all costs of removal, environmental
 
 3 assessment, or remedial actions incurred by the State or any
 
 4 other person to the extent such costs and actions are consistent
 
 5 with this part.
 
 6      §342I-G  Contract for administrative services.  The
 
 7 department may contract the services of a third party to
 
 8 administer the motor vehicle tire program under this part.
 
 9      §342I-H  Entry and inspection of facilities.  The department
 
10 or other authorized party may enter and inspect any building or
 
11 place, according to law at a reasonable time, for the purpose of:
 
12      (1)  Investigating an actual or suspected violation of this
 
13           part;
 
14      (2)  Conducting reasonable tests;
 
15      (3)  Taking samples; and
 
16      (4)  Reviewing and copying records.
 
17      §342I-I  Enforcement.  The department of health shall
 
18 enforce this part.  Authorized employees of the agency may issue
 
19 warnings, citations, administrative orders, or commence civil
 
20 action in circuit court against persons who fail to comply with
 
21 the requirements of this part.
 
22      §342I-J  Penalties.  (a)  For each violation of this part, a
 
23 violator shall be subject to penalties of not more than $10,000
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 for each separate offense.  However, the failure to post the
 
 2 notice required under section 342I-23, following a warning issued
 
 3 by an authorized employee of the agency, shall be subject to a
 
 4 fine up to $1,000 for each separate offense.  Each day of each
 
 5 violation shall constitute a separate offense.  The fines imposed
 
 6 pursuant to this section shall be cumulative.
 
 7      (b)  Remedies shall be by citations, by civil action, or as
 
 8 provided under sections 342H-10 and 342H-11.
 
 9      §342I-K  Disposition of collected fines and penalties.
 
10 Fines and penalties collected under this part shall be deposited
 
11 into the environmental response revolving fund, established by
 
12 section 128D-2."
 
13      SECTION 2.  Section 342I-21, Hawaii Revised Statutes, is
 
14 amended by adding five new definitions to be appropriately
 
15 inserted and to read as follows:
 
16      ""Consumer" means any person or entity who uses a motor
 
17 vehicle tire.
 
18      "Facility" means all contiguous land including buffer zones
 
19 and structures, or other appurtenances and improvements on the
 
20 land used for the handling of used tires.
 
21      "Import" means to buy, bring, or accept delivery of tires
 
22 from an address, supplier, or any entity outside of the State,
 
23 into the State, and shall include those tires on motor vehicles
 
24 brought into the State.
 

 
Page 8                                                     2538
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      "Importer" means any person or entity who imports tires,
 
 2 including those tires on motor vehicles imported into the State.
 
 3      "New motor vehicle tire" means a motor vehicle tire that has
 
 4 not been previously used, recovered, or restored for use."
 
 5      SECTION 3.  In codifying the new sections added to part II
 
 6 of chapter 342I, Hawaii Revised Statutes, by section 1 of this
 
 7 Act, the revisor of statutes shall substitute appropriate section
 
 8 numbers for the letters used in the designations of the new
 
 9 sections in this Act.
 
10      SECTION 4.  New statutory material is underscored.
 
11      SECTION 5.  This Act shall take effect on July 1, 2000.