REPORT TITLE:
Automobile Tire Surcharge

DESCRIPTION:
Requires all entities accepting used tires to maintain records
regarding disposition of the tires.  Creates additional funds to
support illegal dumping prevention programs.


 
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                                                        2879
THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   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 to part II new sections to be appropriately
 
 3 designated and to read as follows:
 
 4      "§342I-A   Recordkeeping.  (a)  All facilities that accept
 
 5 used tires, including but not limited to tire retailers,
 
 6 wholesalers, transporters, collectors, and recyclers, shall
 
 7 maintain, for a minimum of three years, records that provide, at
 
 8 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 the ultimate
 
18           destination of the used tires, the identification of
 

 
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 1           the transporter, the date of shipment, and the quantity
 
 2           of tires shipped.
 
 3      (b)  A summary of the information maintained under
 
 4 subsection (a) of this section shall be submitted to the
 
 5 department by July 31 of each year, listing the total quantity of
 
 6 used tires collected, and the ultimate disposition of the used
 
 7 tires.
 
 8      (c)  All retailers and wholesalers of new tires shall
 
 9 maintain, for a minimum of three years, inventory records that
 
10 indicate the number of new tires sold to consumers in the State.
 
11 These inventory records should also indicate the number of new
 
12 tires sold to entities for the purpose of resale.
 
13      §342I-B   Motor vehicle tire surcharge.  There is
 
14 established a motor vehicle tire surcharge.  The motor vehicle
 
15 tire surcharge shall be one dollar per new tire sold in the
 
16 State.  The surcharge shall be paid by the person or entity who
 
17 sells the new motor vehicle tire to the consumer.  Excluded from
 
18 the surcharge are tires that are sold as a functional part of a
 
19 motor vehicle, such as new or used motor vehicle sales.  To
 
20 qualify for this exemption, the tire must be attached to the
 
21 motor vehicle at the time of the motor vehicle sale.
 
22      §342I-C   Tire inventory records and payment.  (a)  Payment
 

 
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 1 of the motor vehicle tire surcharge shall be made quarterly based
 
 2 on inventory records described in section 342I-A(c), except for
 
 3 those retailers or wholesalers subject to subsection (c).  The
 
 4 dates September 30, December 31, March 31, and June 30 represent
 
 5 the end of each quarter period.  All motor vehicle tire retailers
 
 6 and wholesalers shall submit to the department documentation in
 
 7 sufficient detail that identifies the number of tires sold to
 
 8 consumers in the State, during the previous quarter.
 
 9      (b)  The amount due shall be equal to the number of new
 
10 tires sold to consumers multiplied by the motor vehicle tire
 
11 surcharge of one dollar.  Payment shall be made by check or money
 
12 order payable to the "Department of Health, State of Hawaii."
 
13 All subsequent inventory reports and payments shall be made no
 
14 later than the last day of the month following the end of the
 
15 previous calendar quarter, except for those tire retailers or
 
16 wholesalers subject to subsection (c).
 
17      (c)  A motor vehicle tire retailer or wholesaler who sells
 
18 two hundred or fewer new tires annually shall be permitted to
 
19 provide a report and payment of the surcharge annually, with
 
20 fiscal year ending June 30, rather than quarterly.
 
21      §342I-D   Deposit into environmental management special
 
22 fund.  The surcharge collected pursuant to this part shall be
 

 
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 1 deposited into a special account in the environmental management
 
 2 special fund.  All interest earned or accrued on moneys deposited
 
 3 in the fund pursuant to this section shall become part of the
 
 4 account.  Moneys from this special account may be used by the
 
 5 department to support permitting, monitoring, and enforcement
 
 6 activities including personnel costs regarding used tire
 
 7 management, collection, recycling and disposal facilities;
 
 8 promote improved market development and reuse opportunities for
 
 9 recovered motor vehicle tires; promote tire recovery, recycling,
 
10 and reuse in the State through education, research, and
 
11 demonstration projects; implement the surcharge program under
 
12 this part; and support programs to prevent illegal dumping.
 
13      §342I-E   Contract for administrative services.  The
 
14 department may contract the services of a third party to
 
15 administer the motor vehicle tire program under this part.
 
16      §342I-F   Entry and inspection of facilities.  The
 
17 department or other authorized party may enter and inspect any
 
18 building or place, according to law at a reasonable time, for the
 
19 purpose of:
 
20      (1)  Investigating an actual or suspected violation of this
 
21           part;
 
22      (2)  Conducting reasonable tests;
 

 
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 1      (3)  Taking samples; and
 
 2      (4)  Reviewing and copying records.
 
 3      §342I-G   Enforcement.  The department of health shall
 
 4 enforce this part.  Authorized employees of the agency may issue
 
 5 warnings, citations, administrative orders, or commence civil
 
 6 action in circuit court against persons who fail to comply with
 
 7 the requirements of this part.
 
 8      §342I-H   Penalties.  (a)  For each violation of this part,
 
 9 a violator shall be subject to penalties of not more than $10,000
 
10 for each separate offense.  However, the failure to post the
 
11 notice required under section 342I-23, following a warning issued
 
12 by an authorized employee of the agency, shall be subject to a
 
13 fine up to $1,000 for each separate offense.  Each day of each
 
14 violation shall constitute a separate offense.  The fines imposed
 
15 pursuant to this section shall be cumulative.
 
16      (b)  Remedies shall be by citations, by civil action, or as
 
17 provided under sections 342H-10 and 342H-11.
 
18      §342I-I   Disposition of collected fines and penalties.
 
19 Fines and penalties collected under this part shall be deposited
 
20 into the environmental response revolving fund, established by
 
21 section 128D-2."
 
22      SECTION 2.  Section 342I-21, Hawaii Revised Statutes, is
 

 
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 1 amended by adding new definitions to be appropriately inserted
 
 2 and to read as follows:
 
 3      ""Consumer" means any person or entity who uses a motor
 
 4 vehicle tire.
 
 5      "New motor vehicle tire" means a motor vehicle tire that has
 
 6 not been previously used, recovered, or restored for use."
 
 7      SECTION 3.  In codifying the new sections added to part II
 
 8 of chapter 342I, Hawaii Revised Statutes, by section 1 of this
 
 9 Act, the revisor of statutes shall substitute appropriate section
 
10 numbers for the letters used in the designations of the new
 
11 sections in this Act.
 
12      SECTION 4.  New statutory material is underscored.
 
13      SECTION 5.  This Act shall take effect on July 1, 2000.
 
14 
 
15                           INTRODUCED BY: ________________________
 

 
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