Automobile Tire Surcharge

Establishes a program to regulate disposal of motor vehicle
tires.  Imposes $1 surcharge on all imported tires which may be
used for tire management, collection, disposal, recycling,
marketing, reuse, and illegal dumping prevention programs.
Requires all entities accepting used tires to maintain records
regarding disposition of the tires.  (SD1)

THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Chapter 342I, Hawaii Revised Statutes, is
 2 amended by adding nine new sections to part II to be
 3 appropriately designated and to read as follows:
 4      "342I-A  Registration and record keeping requirements.  (a)
 5 All facilities that accept used tires, including but not limited
 6 to tire retailers, wholesalers, transporters, collectors, and
 7 recyclers, shall maintain, for a minimum of three years, records
 8 that provide, at least, the following information:
 9      (1)  The name, phone number, and address of the person,
10           company, business, source, or entity from whom the used
11           tires were received, if receiving used tires from
12           entities other than the general public, such as tire
13           retailers, wholesalers, transporters, collectors, and
14           recyclers;
15      (2)  The date of receipt of the used tires;
16      (3)  The quantity of used tires received; and
17      (4)  The record of shipment indicating the ultimate
18           destination of the used tires, the identification of

Page 2                                                     2879
                                     S.B. NO.           S.D. 1

 1           the transporter, the date of shipment, and the quantity
 2           of tires shipped.
 3      (b)  A summary of the information maintained under
 4 subsection (a) shall be submitted to the department by July 31 of
 5 each year, listing the total quantity of used tires collected,
 6 and the ultimate disposition of the used tires.
 7      (c)  All retailers and wholesalers of new tires shall
 8 maintain, for a minimum of three years, inventory records that
 9 indicate the number of new tires sold to consumers in the State.
10 These inventory records should also indicate the number of new
11 tires sold to entities for the purpose of resale.
12      342I-B  Motor vehicle tire surcharge.  There is established
13 a motor vehicle tire surcharge on tires imported into the State
14 after September 30, 2000, and before January 1, 2006.  The motor
15 vehicle tire surcharge shall be $1 per tire imported into the
16 State, and shall include those tires imported on motor vehicles.
17 The surcharge shall be paid by the person or entity who imports
18 the vehicle tire, including importers of motor vehicles.
19      342I-C  Tire inventory records and payment.  (a)  Payment
20 of the motor vehicle tire surcharge shall be made quarterly based
21 on inventory records described in section 342I-A(c), except for
22 those retailers or wholesalers subject to subsection (c).  The
23 dates September 30, December 31, March 31, and June 30 represent

Page 3                                                     2879
                                     S.B. NO.           S.D. 1

 1 the end of each quarter period.  All motor vehicle tire retailers
 2 and wholesalers shall submit to the department documentation in
 3 sufficient detail that identifies the number of tires sold to
 4 consumers in the State, during the previous quarter.
 5      (b)  The amount due shall be equal to the number of new
 6 tires sold to consumers multiplied by the motor vehicle tire
 7 surcharge of $1.  Payment shall be made by check or money order
 8 payable to the "Department of Health, State of Hawaii."  All
 9 subsequent inventory reports and payments shall be made no later
10 than the last day of the month following the end of the previous
11 calendar quarter, except for those tire retailers or wholesalers
12 subject to subsection (c).
13      (c)  A motor vehicle tire retailer or wholesaler who sells
14 two hundred or fewer new tires annually shall be permitted to
15 provide a report and payment of the surcharge annually, with
16 fiscal year ending June 30, rather than quarterly.
17      342I-D  Deposit into environmental management special fund.
18 The surcharge collected pursuant to this part shall be deposited
19 into a special account in the environmental management special
20 fund.  All interest earned or accrued on moneys deposited in the
21 fund pursuant to this section shall become part of the account.
22 Moneys from this special account may be used by the department to
23 support permitting, monitoring, and enforcement activities

Page 4                                                     2879
                                     S.B. NO.           S.D. 1

 1 including personnel costs regarding used tire management,
 2 collection, recycling, and disposal facilities; promote improved
 3 market development and reuse opportunities for recovered motor
 4 vehicle tires; promote tire recovery, recycling, and reuse in the
 5 State through education, research, and demonstration projects;
 6 implement the surcharge program under this part; and support
 7 programs to prevent illegal dumping.
 8      342I-E  Contract for administrative services.  The
 9 department may contract the services of a third party to
10 administer the motor vehicle tire program under this part.
11      342I-F  Entry and inspection of facilities.  The department
12 or other authorized party may enter and inspect any building or
13 place, according to law at a reasonable time, for the purpose of:
14      (1)  Investigating an actual or suspected violation of this
15           part;
16      (2)  Conducting reasonable tests;
17      (3)  Taking samples; and
18      (4)  Reviewing and copying records.
19      342I-G  Enforcement.  The department of health shall
20 enforce this part.  Authorized employees of the department may
21 issue warnings, citations, administrative orders, or commence
22 civil action in circuit court against persons who fail to comply
23 with the requirements of this part.

Page 5                                                     2879
                                     S.B. NO.           S.D. 1

 1      342I-H  Penalties.  (a)  For each violation of this part, a
 2 violator shall be subject to penalties of not more than $10,000
 3 for each separate offense.  However, the failure to post the
 4 notice required under section 342I-23, following a warning issued
 5 by an authorized employee of the department, shall be subject to
 6 a fine up to $1,000 for each separate offense.  Each day of each
 7 violation shall constitute a separate offense.  The fines imposed
 8 pursuant to this section shall be cumulative.
 9      (b)  Remedies shall be by citations, by civil action, or as
10 provided under sections 342H-10 and 342H-11.
11      342I-I  Disposition of collected fines and penalties.
12 Fines and penalties collected under this part shall be deposited
13 into the environmental response revolving fund established by
14 section 128D-2."
15      SECTION 2.  Section 342I-21, Hawaii Revised Statutes, is
16 amended by adding two new definitions to be appropriately
17 inserted and to read as follows:
18      ""Consumer" means any person or entity who uses a motor
19 vehicle tire.
20      "New motor vehicle tire" means a motor vehicle tire that has
21 not been previously used, recovered, or restored for use."
22      SECTION 3.  In codifying the new sections added to part II
23 of chapter 342I, Hawaii Revised Statutes, by section 1 of this

Page 6                                                     2879
                                     S.B. NO.           S.D. 1

 1 Act, the revisor of statutes shall substitute appropriate section
 2 numbers for the letters used in the designation of the new
 3 sections in this Act.
 4      SECTION 4.  New statutory material is underscored.
 5      SECTION 5.  This Act shall take effect on July 1, 2000.