STAND

STAND. COM. REP. NO. 2017

Honolulu, Hawaii

, 2006

RE: S.B. No. 3073

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Energy, Environment, and International Affairs and Intergovernmental Affairs, to which was referred S.B. No. 3073 entitled:

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

beg leave to report as follows:

The purpose of this measure is to require an advance refundable vehicle disposal fee for each registered motor vehicle.

The County of Hawaii Department of Environmental Management and Windward Ahupua'a Alliance submitted testimony in support of this measure. The Hawaii Automobile Dealers' Association and the Alliance of Automobile Manufacturers submitted testimony in opposition.

Your Committees find that a problem exists in this State regarding abandoned vehicles, especially on the neighbor islands. Abandoned vehicles are illegally dumped on roadways and in other public areas, creating problems for the counties and the communities. According to the Windward Ahupua'a Alliance, its members helped dispose of nearly one thousand vehicles since March 2003. This measure creates a financial incentive for vehicle owners to responsibly dispose of vehicles at vehicle disposal centers.

Upon further consideration, your Committees amended this measure by:

1. Restricting the measure to counties with a population of 500,000 or less;

2. Clarifying that the fee shall apply to all motor vehicles;

3. Requiring a registered owner of a new motor vehicle to pay the fee in one lump sum upon the issuance of the first certificate of registration;

4. Enabling a registered owner of any other motor vehicle to pay the fee over four annual registration renewals;

5. Clarifying that the claim to the fee shall be transferred upon a transfer of the title to or interest in the registered motor vehicle;

6. Clarifying that if a motor vehicle is abandoned, the fee for the motor vehicle shall escheat to the county and shall be deposited into an environmental management special fund to be used for disposing of abandoned vehicles; and

7. Leaving the disposal fee amount blank to encourage further discussion of that issue.

As affirmed by the records of votes of the members of your Committees on Energy, Environment, and International Affairs and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3073, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3073, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Energy, Environment, and International Affairs and Intergovernmental Affairs,

____________________________ DAVID Y. IGE, Chair		____________________________ J. KALANI ENGLISH, Chair