STAND. COM. REP. NO. 934

Honolulu, Hawaii

RE: S.B. No. 576

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 576, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO USED MOTOR VEHICLE PARTS,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Require licensed used motor vehicle part dealers to obtain a written statement by a seller of a catalytic converter that the seller has the lawful right to sell and dispose of the catalytic converter;

(2) Require a seller of a catalytic converter to present a receipt or notarized declaration regarding the catalytic converter;

(3) Prohibit a licensed used motor vehicle part dealer from purchasing a catalytic converter with no receipt or notarized declaration and to report the attempted sale to the police; and

(4) Establish the offense of theft of catalytic converter as a class C felony.

Your Committee received testimony in support of this measure from the Honolulu Police Department, American Property Casualty Insurance Association, and one individual. Your Committee received comments on this measure from the Department of Attorney General.

Your Committee finds that theft of catalytic converter is on the rise, in part due to the increase in prices associated with metals that are used in the construction of catalytic converters and the relative ease and speed in which a thief can sell scrap metal. Businesses and citizens incur the costs of replacing their catalytic converters, which often cost thousands of dollars, and the extra costs of not having their vehicles for days on end while they are repaired. Additionally, the hasty removal of a catalytic converter can cause secondary repair costs. This measure requires used motor vehicle parts' dealers to follow certain requirements and establishes the theft of a catalytic converter as a class C felony to help deter the increasing proliferation of this crime.

Your Committee has amended this measure by inserting an effective date of May 6, 2137, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 576, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 576, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

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KARL RHOADS, Chair