STAND. COM. REP. NO. 460-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2538
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Energy and Environmental Protection, to
which was referred H.B. No. 2538 entitled: 

     "A BILL FOR AN ACT RELATING TO MOTOR VEHICLE TIRES,"

begs leave to report as follows:

     The purpose of this bill is to address the growing number of
used tires in the state by:

     (1)  Imposing a $1 tax on all tires imported into the state;

     (2)  Requiring all businesses engaged in the selling,
          disposing, transporting, recycling, importing, and
          collecting of tires to keep records;

     (3)  Providing the authority to the Department of Health
          (DOH) to enforce the proper management of tires through
          the imposing of fines;

     (4)  Supporting illegal dumping prevention programs; and

     (5)  Promoting re-use opportunities for recovered tires.

     The Legislative Information Services of Hawaii testified in
support of this bill.  The Department of Health testified in
support of this bill with recommendations.  The Department of
Commerce and Consumer Affairs testified without a position on
this bill.  The Hawaii Automotive Repair and Gasoline Dealers
Association testified in opposition to this bill.

 
 
                                 STAND. COM. REP. NO. 460-00
                                 Page 2

 

     Your Committee has learned that there is a serious problem
facing proper tire disposal in Hawaii.

     Your Committee has amended this bill by:

     (1)  Creating a life span of approximately five years for
          the $1 per tire tax;

     (2)  Removing the tax exception for tires attached to cars;

     (3)  Reducing the number of tires sold per year by a
          business from 200 to 50 to qualify for exemption;

     (4)  Creating a liability section for persons engaged in
          illegal dumping; and

     (5)  Adding definitions of "facility", "import", and
          "importer".

     Technical non-substantive amendments were are also made for
style and clarity.

     As affirmed by the record of votes of the members of your
Committee on Energy and Environmental Protection that is attached
to this report, your Committee is in accord with the intent and
purpose of H.B. No. 2538, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
2538, H.D. 1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Energy and
                                   Environmental Protection,



                                   ______________________________
                                   HERMINA M. MORITA, Chair