Report Title:

Advance Disposal Fee; New Motor Vehicles


Requires an advance disposal fee for new motor vehicles.


H.B. NO.









relating to vehicles.



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 incentive" means an incentive paid to licensed recyclers for recycling motor vehicles. These incentives may be structured to include the costs of collection and processing and a "buy back" incentive to increase participation by the public and private haulers.

"Motor vehicle recovery program" means a program for motor vehicle recovery and reuse for purposes including but not limited to motor vehicle or motor vehicle parts, refurbishing, reuse, 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 Advance disposal fee. (a) Every new motor vehicle dealer shall pay to the department an advance disposal fee. The fee shall be imposed only once on the same motor vehicle. Beginning September 1, 2004, 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 chapter.

342G-C New motor vehicle dealers; registration, recordkeeping requirements. (a) By September 1, 2004, all new motor vehicle dealers operating within the State shall register with the department, using forms prescribed by the department, and shall notify the department of any change in address. After September 1, 2004, any person who desires to conduct business in this State as a new motor vehicle dealer shall register with the department no later than one month prior to the commencement of the business.

(b) 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 chapter or any rule adopted pursuant to this chapter; or

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

342G-D Deposit into environmental management special fund; distribution to counties. (a) Revenues generated from the advance disposal fee shall be deposited into a special account in the environmental management fund. Moneys from the special account shall be used to fund motor vehicle recovery programs established in accordance with the requirements under section 342G-F; provided that no moneys shall be made available to a county unless the county has first submitted its formally adopted integrated solid waste management plan to the department for review. 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) No more than ten per cent, in the aggregate, of the revenue collected in any one year may be used by the department for administrative and educational purposes and to promote motor vehicle recovery, recycling, and reuse in Hawaii through research and demonstration projects.

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

342G-E New motor vehicle inventory report and payment. (a) Payment of the advance glass disposal fee shall be made quarterly based on inventory reports of the new motor vehicle dealers. All new motor vehicle dealers shall submit to the department documentation in sufficient detail that identifies the number of new motor vehicles imported to the State and sold or distributed, by manufacturer or distributor, during the calendar year.

(b) The amount due from new motor vehicle dealers for the calendar year shall be the sum equal to the number of new motor vehicles provided in subsection (a) multiplied by the advance disposal fee specified in section 342G-B. Payment shall be made by check or money order payable to the "Department of Health, State of Hawaii". All subsequent inventory reports and payments shall be made not later than the fifteenth day of the month following the end of the previous calendar quarter.

342G-F County motor vehicle recovery programs; requirements. (a) All county motor vehicle recovery programs shall include some form of motor vehicle incentive or "buy back" program providing a means of encouraging participation by the public or private collectors.

(b) In addition, county programs may include but shall not be limited to:

(1) Funding of 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 off-island markets;

(3) The development of collection facilities or the provision of motor vehicle recycling or the incremental portions of multi-material programs;

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

(5) Public education and awareness programs focusing on motor vehicle recovery or the incremental portions of multi-material programs.

342G-G Contract for administrative services. The department may contract the services of a third party to administer the advance disposal fee program under this part."

SECTION 2. 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 3. This Act shall take effect upon its approval.