STAND. COM. REP. NO. 1928-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 2279

S.D. 2

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Judiciary & Hawaiian Affairs, to which was referred S.B. No. 2279, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CATALYTIC CONVERTERS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish provisions to regulate the purchase of catalytic converters by used motor vehicle parts dealers and palladium, platinum, and rhodium by scrap dealers and recyclers;

(2) Subject persons who violate certain provisions of the used motor vehicle parts and accessories law and scrap dealer law to a class C felony;

(3) Establish the class C felony offense of theft of catalytic converter; and

(4) Require each county police department to maintain a database of certain reported information and initiate education programs to encourage its residents to take measures to prevent catalytic converter thefts.

Your Committee received testimony in support of this measure from the Department of Transportation, one member of the Maui County Council, Honolulu Police Department, Department of the Prosecuting Attorney of the County of Maui, Hawaii Insurers Council, American Property Casualty Insurance Association of America, National Insurance Crime Bureau, AAA Hawaii, Stolen Stuff Hawaii, and two individuals. Your Committee received comments on this measure from the Department of the Attorney General, Department of the Prosecuting Attorney of the City and County of Honolulu, and Schnitzer Steel Hawaii.

Your Committee finds that catalytic converters have extrinsic value outside of being just a motor vehicle part. The rise in prices associated with precious catalyst metals that are used in the construction of catalytic converters is causing catalytic converter theft to increase. The relative ease and speed in which a person can remove a catalytic converter, coupled with the financial reward for selling the scrap metal, is what drives thefts. Your Committee further finds that installing a replacement catalytic converter is expensive, and, because thieves hastily remove catalytic converters, other areas of the car may be damaged, which increases repair costs. Your Committee believes that this measure will help deter catalytic converter theft in Hawaii.

Your Committee has amended this measure by:

(1) Amending the exemption from the requirements for catalytic converter purchases by motor vehicle repair dealers; and

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

As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2279, 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. 2279, S.D. 2, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

____________________________

MARK M. NAKASHIMA, Chair