REPORT TITLE:
Automobile Tire Surcharge


DESCRIPTION:
Establishes a program to regulate disposal of motor vehicle
tires.  Imposes $1 surcharge on all imported tires which may be
used for tire management, collection, disposal, recycling,
marketing, reuse, and illegal dumping prevention programs.
Requires all entities accepting used tires to maintain records
regarding disposition of the tires.  (SB2879 SD2)

 
a                                                               
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2879
THE SENATE                              S.B. NO.           S.D. 2
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 eleven new sections to part II to be
 
 3 appropriately designated and to read as follows:
 
 4      "§342I-A  Registration and record keeping requirements.  (a)
 
 5 All facilities that accept used tires, including but not limited
 
 6 to tire retailers, wholesalers, transporters, collectors, and
 
 7 recyclers, shall maintain, for a minimum of three years, records
 
 8 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 the:
 
18           (A)  Ultimate destination of the used tires;
 
19           (B)  Identification of the transporter;
 

 
a                                                               
Page 2                                                     2879
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1           (C)  Date of shipment; and
 
 2           (D)  Quantity of tires shipped.
 
 3 Permitted municipal solid waste disposal facilities, including
 
 4 incineration facilities that receive used tires incidental to the
 
 5 disposal of municipal solid waste, shall be exempt from the
 
 6 recordkeeping requirements of this section.
 
 7      (b)  A summary of the information maintained under
 
 8 subsection (a) shall be submitted to the department by July 31 of
 
 9 each year, listing the total quantity of used tires collected and
 
10 the ultimate disposition of the used tires.
 
11      (c)  All retailers and wholesalers of new tires shall
 
12 maintain, for a minimum of three years, inventory records that
 
13 indicate the number of new tires sold to consumers in the State.
 
14 These inventory records also shall indicate the number of new
 
15 tires sold to entities for the purpose of resale.
 
16      (d)  By September 1, 2000, all motor vehicle tire importers
 
17 operating within the State shall register with the department,
 
18 using forms prescribed by the department, and shall notify the
 
19 department of any change in address.  After September 1, 2000,
 
20 any person who desires to conduct business in this State as a
 
21 motor vehicle importer shall register with the department no
 
22 later than one month prior to the commencement of the business.
 
23      (e)  All motor vehicle tire importers shall maintain records
 

 
a                                                               
Page 3                                                     2879
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1 reflecting the importation of tires.  The records shall be made
 
 2 available, upon request, for inspection by the department.
 
 3      §342I-B  Motor vehicle tire surcharge.  There is established
 
 4 a motor vehicle tire surcharge on tires imported into the State
 
 5 after September 30, 2000, and before January 1, 2006.  The motor
 
 6 vehicle tire surcharge shall be $1 per tire imported into the
 
 7 State and shall include those tires imported on motor vehicles.
 
 8 The surcharge shall be paid by the person or entity who imports
 
 9 the vehicle tire, including importers of motor vehicles.
 
10      §342I-C  Tire inventory records and payment.  (a)  Payment
 
11 of the motor vehicle tire surcharge shall be made quarterly based
 
12 on inventory records described in section 342I-A(c), except for
 
13 those retailers or wholesalers subject to subsection (c).  The
 
14 dates September 30, December 31, March 31, and June 30 represent
 
15 the end of each quarter period.  All motor vehicle tire retailers
 
16 and wholesalers shall submit to the department documentation in
 
17 sufficient detail that identifies the number of tires sold to
 
18 consumers in the State, during the previous quarter.
 
19      (b)  The amount due shall be equal to the number of new
 
20 tires sold to consumers multiplied by the motor vehicle tire
 
21 surcharge of $1.  Payment shall be made by check or money order
 
22 payable to the "Department of Health, State of Hawaii."  All
 
23 subsequent inventory reports and payments shall be made no later
 

 
a                                                               
Page 4                                                     2879
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1 than the last day of the month following the end of the previous
 
 2 calendar quarter, except for those tire retailers or wholesalers
 
 3 subject to subsection (c).
 
 4      (c)  A motor vehicle tire retailer or wholesaler who sells
 
 5 two hundred or fewer new tires annually shall be permitted to
 
 6 provide a report and payment of the surcharge annually, with
 
 7 fiscal year ending June 30, rather than quarterly.
 
 8      §342I-D  Deposit into environmental management special fund.
 
 9 The surcharge collected pursuant to this part shall be deposited
 
10 into a special account in the environmental management special
 
11 fund established by section 342G-63.  All interest earned or
 
12 accrued on moneys deposited in the fund pursuant to this section
 
13 shall become part of the account.  Moneys from this special
 
14 account may be used by the department to:
 
15      (1)  Support permitting, monitoring, and enforcement
 
16           activities, including personnel costs regarding used
 
17           tire management, collection, recycling, and disposal
 
18           facilities;
 
19      (2)  Promote improved market development and reuse
 
20           opportunities for recovered motor vehicle tires;
 
21      (3)  Promote tire recovery, recycling, and reuse in the
 
22           State through education, research, and demonstration
 
23           projects;
 

 
a                                                               
Page 5                                                     2879
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1      (4)  Implement the surcharge program under this part; and
 
 2      (5)  Support programs to prevent illegal dumping.
 
 3      §342I-E  Recovery of costs.  (a)  Any costs incurred and
 
 4 payable from the fund as a result of tire cleanups and associated
 
 5 environmental assessments and remediation shall be recovered by
 
 6 the attorney general, upon the request of the department, from
 
 7 the liable person or person.  The amount of any cost that may be
 
 8 recovered pursuant to this section for a tire cleanup and
 
 9 associated assessment and remedial action paid from the fund
 
10 shall include the amount paid from the fund and legal interest.
 
11      (b)  Moneys recovered by the attorney general pursuant to
 
12 this section shall be deposited to the special account of the
 
13 environmental management special fund.
 
14      (c)  Any action for recovery of response costs shall
 
15 commence within two years after the date of completion of all
 
16 response actions.
 
17      §342I-F  Liability.  Notwithstanding any provision or rule
 
18 of law, in the event an illegal disposal or associated release,
 
19 or a threatened release, occurs that causes the incurrence of
 
20 response costs:
 
21      (1)  The owner or operator or both of a facility;
 
22      (2)  Any person who at the time of disposal of any tires
 
23           owned or operated any facility at which the tires were
 

 
a                                                               
Page 6                                                     2879
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1           disposed;
 
 2      (3)  Any person who by contract, agreement, or otherwise
 
 3           arranged for disposal or recycling, or arranged with a
 
 4           transporter for transport for disposal or recycling, of
 
 5           tires owned or possessed by the person, by any other
 
 6           party or entity, at any facility owned or operated by
 
 7           another party or entity and containing the tires; and
 
 8      (4)  Any person who accepts or accepted any tires for
 
 9           transport to disposal or recycling facilities or sites
 
10           selected by the person,
 
11 shall be strictly liable for all costs of removal, environmental
 
12 assessment, or remedial actions incurred by the State or any
 
13 other person to the extent the costs and actions are consistent
 
14 with this part.
 
15      §342I-G  Contract for administrative services.  The
 
16 department may contract the services of a third party to
 
17 administer the motor vehicle tire program under this part.
 
18      §342I-H  Entry and inspection of facilities.  The department
 
19 or other authorized party may enter and inspect any building or
 
20 place, according to law at a reasonable time, for the purpose of:
 
21      (1)  Investigating an actual or suspected violation of this
 
22           part;
 
23      (2)  Conducting reasonable tests;
 

 
a                                                               
Page 7                                                     2879
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1      (3)  Taking samples; and
 
 2      (4)  Reviewing and copying records.
 
 3      §342I-I  Enforcement.  The department of health shall
 
 4 enforce this part.  Authorized employees of the department may
 
 5 issue warnings, citations, or administrative orders, or commence
 
 6 civil action in circuit court against persons who fail to comply
 
 7 with the requirements of this part.
 
 8      §342I-J  Penalties.  (a)  For each violation of this part, a
 
 9 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 department, shall be subject to
 
13 a 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-K  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
 
23 amended by adding five new definitions to be appropriately
 

 
a                                                               
Page 8                                                     2879
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1 inserted and to read as follows:
 
 2      ""Consumer" means any person or entity who uses a motor
 
 3 vehicle tire.
 
 4      "Facility" means all contiguous land, including buffer zones
 
 5 and structures or other appurtenances and improvements on the
 
 6 land, used for the handling of used tires.
 
 7      "Import" means to buy, bring, or accept delivery of tires,
 
 8 from an address, supplier, or any entity outside of the State,
 
 9 into the State and includes the tires on motor vehicles brought
 
10 into the State.
 
11      "Importer" means any person or entity who imports tires,
 
12 including the tires on motor vehicles imported into the State.
 
13      "New motor vehicle tire" means a motor vehicle tire that has
 
14 not been previously used, recovered, or restored for use."
 
15      SECTION 3.  In codifying the new sections added to part II
 
16 of chapter 342I, Hawaii Revised Statutes, by section 1 of this
 
17 Act, the revisor of statutes shall substitute appropriate section
 
18 numbers for the letters used in the designation of the new
 
19 sections in this Act.
 
20      SECTION 4.  New statutory material is underscored.
 
21      SECTION 5.  This Act shall take effect on July 1, 2000.
 

 
a