STAND. COM. REP. NO. 1054-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2879
                                     S.D. 2
                                     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 S.B. No. 2879, S.D. 2, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to regulate the disposal of used
motor vehicle tires by:

     (1)  Requiring all facilities that accept used tires,
          including tire retailers, wholesalers, transporters,
          collectors, and recyclers, to maintain records for
          three years on the entity from whom the used tires were
          received and in the manner in which the used tires were
          disposed;

     (2)  Requiring all importers to pay a surcharge of $1 for
          each new tire imported into the State after September
          30, 2000, and before January 1, 2006;

     (3)  Requiring that the surcharge be deposited into the
          Environmental Management Special Fund to be used to:

          (a)  Fund tire permitting, monitoring, and enforcement
               activities;

          (b)  Promote market development and reuse
               opportunities;

 
 
                                 STAND. COM. REP. NO. 1054-00
                                 Page 2

 
          (c)  Promote tire recovery, recycling, and reuse; and

          (d)  Prevent illegal dumping.

     The Department of Health, the Legislative Information
Services of Hawaii, and the Hawaii Automotive Repair and Gasoline
Dealers Association testified in support of this bill.  Catrala-
Hawaii opposed passage of this measure.  The Chamber of Commerce
of Hawaii and the Tax Foundation of Hawaii offered comments.

     Your Committee finds that the surcharge should not apply to
those who import motor vehicles for personal use.  Therefore, the
bill was amended to exempt from the surcharge any person who
imports fewer than fifty tires within a one-year period.

     The bill was further amended by:

     (1)  Deleting the requirement that all retailers and
          wholesalers of new tires must maintain, for a minimum
          of three years, inventory records of new tires sold;

     (2)  Allowing moneys from the surcharge to be used to
          cleanup improper tire disposal sites; and

     (3)  Making technical, nonsubstantive amendments for
          purposes of consistency 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 S.B. No. 2879, S.D. 2, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as S.B. No. 2879, S.D. 2, 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