STAND. COM. REP. NO. 2229

Honolulu, Hawaii

RE:    S.B. No. 2627

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Commerce, Consumer Protection, and Affordable Housing, to which was referred S.B. No. 2627 entitled:

"A BILL FOR AN ACT RELATING TO COPPER PURCHASES,"

begs leave to report as follows:

     The purpose of this measure is to further aid in the deterrence of copper theft by establishing additional requirements for scrap dealers and recyclers when paying for copper purchases.

     Specifically, this measure requires scrap dealers and recyclers to:

     (1)  Pay for copper by check;

     (2)  Issue the check payable to the name of the seller; and

     (3)  Mail the check to the address shown on the identification of the seller, or arrange for a personal pick-up of the check, after a specified wait period.

     Testimony in support of this measure was submitted by the Police Department, City and County of Honolulu.  Testimony in opposition to this measure was submitted by Reynolds Recycling.

     Your Committee finds that copper theft continues to be a serious problem, inasmuch as copper thieves illegally traffic in stolen copper as a ready source of cash.  Discouraging copper thieves from selling stolen copper to scrap dealers would reduce the incidence of copper theft in Hawaii.  Testimony indicates that requiring scrap dealers and recyclers to hold checks for at least twenty-one days is inappropriate and would cause an unnecessary burden on recyclers and their customers.

     Accordingly, your Committee has amended this measure by:

     (1)  Deleting the requirement for scrap dealers and recyclers to hold a check for payment of copper to a seller for at least twenty-one days from the date of the sale of the copper; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and style.

     Your Committee believes that establishing additional requirements for scrap dealers and recyclers when paying for copper purchases fulfills the intent of this measure, which is to further aid in the deterrence of copper theft.

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Affordable Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2627, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2627, S.D. 1, and be referred to the Committee on Judiciary and Labor.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Affordable Housing,

____________________________

RUSSELL S. KOKUBUN, Chair