Establishes an incentive for vehicle owners to properly dispose of their vehicles at county designated salvage sites by establishing a redeemable abandoned vehicle certificate of deposit program.

A BILL FOR AN ACT

SECTION 1. The legislature recognizes the growing problem of abandoned vehicles which are hazardous to Hawaii's roads and environment. While every vehicle that is imported should be disposed of properly, too often they are abandoned instead.

The legislature further finds that an incentive is needed to encourage proper disposal of vehicles and to discourage abandonment. A $100 abandoned vehicle certificate of deposit that will be redeemable when the car is taken to a county designated salvage yard will serve as an incentive for owners to properly dispose of their vehicles. The $100 deposit will be paid only once during the life of the vehicle, at the time the first owner obtains the certificate of ownership. The abandoned vehicle certificate of deposit will attach to the certificate of ownership and be transferred to each new legal owner.

The purpose of this Act is to encourage vehicle owners to properly dispose of their vehicles at county-designated salvage sites by establishing a redeemable abandoned vehicle certificate of deposit program.

SECTION 2. Chapter 290, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§290-   Abandoned vehicle certificate of deposit; new vehicles. (a) Upon registration of a vehicle and issuance of a certificate of ownership under section 286-47 and 286-52, the director of finance shall issue an abandoned vehicle certificate of deposit to the legal owner of a motor vehicle.

(b) A deposit in the amount of $100 shall be paid by the legal owner to the director of finance in return for the redeemable abandoned vehicle certificate of deposit.

(c) To redeem the full amount of the abandoned vehicle certificate of deposit, the legal owner of the vehicle shall bring the derelict or unused vehicle and the certificate of deposit, which shall be attached to the certificate of ownership, to a salvage yard designated by the county.

(d) There shall be established a revolving account within the general fund of the county in which the director of finance shall deposit the moneys received from the abandoned vehicle certificates of deposit.

(e) The director of finance shall adopt rules in accordance with chapter 91 to effectuate the purpose of this section."

SECTION 3. Chapter 290, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§290-   Abandoned vehicle certificate of deposit; existing vehicles. The owner of a vehicle for which no abandoned vehicle certificate of deposit has been issued shall obtain a certificate at the time of the vehicle's first annual registration after rules have been adopted pursuant to section 290-   ."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.