STAND. COM. REP. 1149

Honolulu, Hawaii

, 2003

RE: S.B. No. 1611

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Energy and Environmental Protection and Economic Development and Business Concerns, to which was referred S.B. No. 1611 entitled:

"A BILL FOR AN ACT RELATING TO THE DEPOSIT BEVERAGE CONTAINER PROGRAM,"

beg leave to report as follows:

The purpose of this bill is to provide a waiver application process for dealers required to operate bottle redemption centers.

The Hawaii Food Industry Association testified in support of this bill. The Retail Merchants of Hawaii, Pepsi Bottling Group, and Coca-Cola Bottling Company of Hawaii supported the intent of this measure. The Department of Health (DOH) and Paradise Beverages opposed this measure.

Protection of Hawaii's natural and pristine environment is of the utmost importance. One of the biggest reasons visitors travel to our islands is for the scenic beauty which the State is known for. Your Committees find that requiring DOH to establish criteria for businesses to obtain a waiver from the application process required to operate bottle redemption centers will address concerns raised by the retail industry on the burdens placed on them by Act 176, Session Laws of Hawaii 2002, also known as the "Bottle Bill." By allowing retailers to obtain a waiver based on a less costly or more efficient plan for redemption for the dealer's area, recycling may increase, further assisting in the State's efforts to preserve our environment for generations to come.

However, your Committee also finds that the Deposit Beverage Container Program can be clarified further. Accordingly, your Committee has amended this measure by:

(1) Exempting from the income tax, amounts received as a beverage container deposit;

(2) Requiring each deposit beverage distributor to generate a monthly report to DOH of the total sales to dealers of consumers;

(3) Requiring that, beginning January 1, 2005, payment of the deposit beverage container fee and deposits shall be made monthly based on sales reports of the deposit beverage distributors;

(4) Clarifying that the amount due from deposit beverage distributors shall be the net number of deposit beverage containers sold multiplied by the sum of the prevailing deposit beverage container fee and the refund value of five cents;

(5) Specifying that payment of this amount shall be by check or money order made payable to DOH;

(6) Requiring all importers and manufacturers to submit annual reports to DOH by October 15, 2004, and each October 15th thereafter and shall contain the quantities of containers imported or manufactured during the previous year by material type and size;

(7) Clarifying that dealers operating a redemption center shall accept all types of empty deposit beverage containers with a Hawaii refund value;

(8) Clarifying that all dealers shall post a clear and conspicuous sign at the primary public entrance to the dealers place of business, which specifies the address and hours of operation of the closest nondealer redemption center locations;

(9) Allowing DOH to withdraw the certification of a redemption center;

(10) Deleting the requirement that redemption centers crush or destroy all deposit beverage containers that are accepted at the time of redemption;

(11) Allow DOH to:

(A) Limit the number of redemption centers to maintain appropriate operating scale;

(B) Set minimum distances between redemption centers;

(C) Permit potential redemption center operators to bid for the right to operate a center if there are conflicts over servicing a particular area; and

(D) Set minimum population requirements to be served by a redemption center.

(12) Requiring that payments for handling fees shall be made within sixty days of receiving collection reports from redemption centers; provided there is no discrepancy in the collection reports; and

(13) Repealing Section 324G-105, which established requirements for deposit beverage containers inventory reports and payments.

As affirmed by the records of votes of the members of your Committees on Energy and Environmental Protection and Economic Development and Business Concerns that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1611, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1611, H.D. 1, and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committees on Energy and Environmental Protection and Economic Development and Business Concerns,

 

____________________________

BRIAN SCHATZ, Chair

____________________________

HERMINA M. MORITA, Chair