STAND. COM. REP. NO. 619

Honolulu, Hawaii

, 2021

RE: H.B. No. 446

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 446, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLES,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish the felony offense of theft of a catalytic converter;

(2) Prohibit persons licensed to purchase or sell used motor vehicle parts or accessories or licensed to wreck, salvage, or dismantle motor vehicles from accepting parts or accessories or a motor vehicle if the seller does not furnish certain information and require licensees to report the attempted sale to the police;

(3) Increase the minimum and maximum allowable fine for violations of the law relating to used motor vehicle parts and accessories; and

(4) Regulate the purchase of catalytic converters and catalytic converter metals by scrap dealers by:

(A) Requiring a written statement, photograph of the catalytic converter or catalytic converter metals, and verification of a seller's identification before a scrap dealer's purchase of a catalytic converter or catalytic converter metals; and

(B) Specifying recordkeeping requirements for the sale of a catalytic converter or catalytic converter metals.

Your Committee received testimony in support of this measure from the American Property Casualty Insurance Association of America, National Insurance Crime Bureau, Roberts Hawaii, Stolen Stuff Hawaii, Mo‘opuna Motorcycle Club, and ten individuals. Your Committee received comments on this measure from the Department of the Attorney General, Hawaii Insurers Council, Industrial Battery Solutions LLC, 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) Exempting manufacturing, industrial, or other commercial vendors that generate or sell catalytic converters in the ordinary course of their business, such as a licensed scrap dealers, towing companies, and muffler repair shops, from providing a copy of a receipt when presenting catalytic converters or catalytic converter metals for purchase; 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 H.B. No. 446, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 446, H.D. 2.

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

____________________________

MARK M. NAKASHIMA, Chair