STAND. COM. REP. NO. 1428-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2879
                                     S.D. 2
                                     H.D. 2




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

Sir:

     Your Committee on Finance, to which was referred S.B. No.
2879, S.D. 2, H.D. 1, 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 to
          maintain, for a minimum of three years, records on the
          entities from whom used tires are received and in the
          manner in which the used tires are disposed;

     (2)  Requiring that all motor vehicle tire importers within
          the State register with the Department of Health (DOH);

     (3)  Empowering the DOH to inspect facilities and to enforce
          the statutes governing recordkeeping and improper
          disposal of motor vehicle tires; and

     (4)  Establishing a $1 per tire surcharge on tires imported
          into the State, to be deposited into the Environmental
          Management Special Fund to be used to:

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


 
 
                                 STAND. COM. REP. NO. 1428-00
                                 Page 2

 
          (b)  Promote market development and reuse
               opportunities;

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

          (d)  Prevent illegal dumping; and

          (e)  Clean up improper tire disposal sites.

     The Department of Health and the Hawaii Automotive Repair &
Gasoline Dealers Association supported this measure.  The Chamber
of Commerce of Hawaii, the Legislative Information Services of
Hawaii, and the Tax Foundation of Hawaii commented on this
measure.  The Hawaii Automobile Dealers' Association of Hawaii,
the Goodyear Tire and Rubber Company, and Catrala-Hawaii opposed
this measure.

     Your Committee finds that environmental pollution by
discarded motor vehicle tires is not only unsightly, but also
poses a health risk.  However, clean up of this problem is
potentially costly and time consuming.  Additionally, parties
responsible for the pollution are often not found, leaving the
State with no redress.  Therefore, it is difficult to seek a
proactive and equitable solution to this problem, which will only
worsen over time.

     Your Committee has amended this measure by replacing the
current funding mechanism and associated recordkeeping
requirement with a $2 Environmental Clean Up Fee to be charged
with annual motor vehicle registration.  Your Committee feels
that this mechanism will provide a stable source of funding,
provided by those who use the tires which cause the pollution.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2879, S.D. 2, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 2879,
S.D. 2, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair