HB1176

SECTION 1. Chapter 342G, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . New motor vehicle recovery

§342G-A Definitions. As used in this part, unless the context requires otherwise:

"Import" means to buy, bring, or accept delivery of new motor vehicles from an address, supplier, or any entity outside of the State of Hawaii.

"Motor vehicle disposal program" means a program for motor vehicle disposal or reuse for purposes including but not limited to motor vehicle or motor vehicle parts, refurbishing, or recycling for shipment out of the State, or crushed into aggregate substitute.

"New motor vehicle" means motor vehicles of the current model year, immediate past model year, or the next model year that have not been sold or registered by the manufacturer or dealer.

"New motor vehicle dealer" means a dealer licensed under chapter 437 to engage in the business of selling, at wholesale or retail or both, new motor vehicles.

§342G-B Mandatory motor vehicle disposal fee. (a) Every new motor vehicle dealer shall pay to the department a mandatory motor vehicle disposal fee. The fee shall be imposed upon every registered new motor vehicle. Thereafter, whenever the title or interest of the motor vehicle is transferred, the transferee shall pay the mandatory motor vehicle disposal fee, and the transferor shall be refunded the fee from the environmental management special fund. Beginning September 1, 2007, the fee shall $250 per new motor vehicle.

(b) No county shall impose or collect any assessment or fee on new motor vehicles for the same or similar purpose that is the subject of this part.

§342G-C New motor vehicle dealers; recordkeeping requirements. All new motor vehicle dealers shall maintain records reflecting the importation of new motor vehicles. The records shall identify the model, weight, and quantity of each type of new motor vehicle. The records shall be made available, upon request, for inspection by the department; provided that any proprietary information obtained by the department shall be kept confidential and shall not be disclosed to any other person except:

(1) As may be reasonably required in an administrative or judicial proceeding to enforce any provision of this part or any rule adopted pursuant to this part; or

(2) Under an order issued by a court or administrative agency hearing officer.

§342G-D Deposit into environmental management special fund; refund; distribution to counties. (a) Revenues generated from the mandatory motor vehicle disposal fee shall be deposited into a special account in the environmental management special fund. Moneys from the special account shall be used to:

(1) Refund payments of mandatory motor vehicle disposal fees made by transferors; and

(2) Fund motor vehicle disposal programs established under section 342G-E. In the event of any surplus in the special account, the department shall recommend to the legislature a reduction in the fee as deemed necessary.

(b) The department shall distribute the moneys contained in the special account to the counties in proportion to the number of new motor vehicles imported into each county, based upon the county's de facto population. The distribution shall be in the form of direct contracts with the department as permitted under chapters 103 and 103D, or transfer of funds from the department.

(c) All moneys distributed to the counties under subsection (b), and not expended or encumbered by the counties as specified in section 342G-E, shall be returned to the State for deposit into the special account of the environmental management special fund at the end of each fiscal year.

§342G-E County motor vehicle disposal programs; requirements. All county motor vehicle disposal programs shall include but not be limited to:

(1) Funding for the collection and processing of motor vehicles or motor vehicle parts either through existing county agencies or through external contracts for services;

(2) Subsidizing the transportation of processed material to out-of-state markets;

(3) Development of collection facilities or the provision of motor vehicle disposal;

(4) Additional research and development programs, including grants to private sector entrepreneurs, especially those activities that develop higher value uses for the motor vehicle parts and materials; and

(5) Public education and awareness programs that focus on motor vehicle disposal."

SECTION 2. Section 342G-63, Hawaii Revised Statutes, is amended to read as follows:

"§342G-63 Establishment of the environmental management special fund. (a) There is created in the state treasury an environmental management special fund. The fund may receive legislative appropriations, grants, and gifts.

(b) All moneys collected pursuant to section 342G-62 shall be deposited into the environmental management special fund. All interest earned or accrued on moneys deposited into the fund shall become a part of the fund.

(c) There shall be a special account in the environmental management special fund. Fees assessed pursuant to part shall be deposited into the special account.

[~~(c)~~] (d) The department shall expend moneys contained in the environmental management special fund to:

(1) Partially fund the operating costs of the program including its regulatory functions and the development of waste reduction and diversion activities as mandated by [~~chapter 342G;~~] this chapter;

(2) Fund statewide education, demonstration, and market development programs, through direct contract or direct transfer of funds to the counties and the department of business, economic development, and tourism, or under a grant program that may be developed under rules pursuant to chapter 91; [~~and~~]

(3) Fund the motor vehicle disposal program pursuant to part ; and

[~~(3)~~] (4) Provide for annual training for municipal solid waste operators in compliance with 40 Code of Federal Regulations Part 258 and [~~chapter 11-58, Hawaii Administrative Rules.~~] administrative rules."

SECTION 3. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

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

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1176
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII