Report Title:

Deposit Beverage Container Fee, Repeal

Description:

Repeals imposition of the deposit beverage container fee.

THE SENATE

S.B. NO.

1176

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO THE DEPOSIT BEVERAGE CONTAINER PROGRAM.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the deposit beverage container program established in the 2002 session will help combat the serious litter problem in the State, which mars our natural beauty for both visitors and residents. The legislature further finds that the program should be self-sustaining, as are similar programs elsewhere in the United States. To this end, the purpose of this Act is to abolish the deposit beverage container fee.

This fee is collected on an escalating scale from deposit beverage distributors. The fee is placed in a special fund, which is used, along with the five cent refund fee, by the department of health to fund the program. However, there will always be a discrepancy in the number of beverage containers sold with the fee, and the number that is actually submitted for a refund. The amount of refunds that is funneled into the fund, but not applied for, should be sufficient to fund the program.

SECTION 2. Section 342G-104, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is established in the state treasury the deposit beverage container deposit special fund, into which shall be deposited:

[(1) All revenues generated from the deposit beverage container fee as described under sections 342G-102 and 342G-105;

(2)] (1) All revenues generated from the deposit beverage container deposit as described under sections 342G-105 and 342G-110; and

[(3)] (2) All accrued interest from this fund."

SECTION 3. Section 342G-105, Hawaii Revised Statutes, is amended to read as follows:

"[[]§342G-105[]] Deposit beverage container inventory report and payment. (a) Beginning October 1, 2002, payment of [the deposit beverage container fee and] deposits as described in section 342G-110 shall be made monthly based on inventory reports of the deposit beverage distributors. All deposit beverage distributors shall submit to the department documentation in sufficient detail that identifies:

(1) The number of beverages in deposit beverage containers, by container size and type, manufactured in or imported to the State; and

(2) The number of these deposit beverage containers, by container size and type, exported and intended for consumption out of the State during the reporting period.

(b) The amount due from deposit beverage distributors shall be the net number of deposit beverage containers imported or manufactured into the State (the total number of containers imported or manufactured less the total number of containers exported for consumption outside the State) multiplied by [the sum of the prevailing deposit beverage container fee and] the refund value of 5 cents. Payment shall be made by check or money order payable to the "Department of Health, State of Hawaii". All inventory reports and payments shall be made no later than the fifteenth day of the month following the end of the payment period of the previous month."

SECTION 4. Section 342G-110, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) Deposit beverage distributors who are required under subsection (c) to pay a deposit shall also [pay a deposit beverage container fee and] register with the State."

SECTION 5. Section 342G-117, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"[[]§342G-117[]] Handling fees and refund values for certified redemption centers. (a) The State shall pay to each certified redemption center a handling fee [of not less than the prevailing beverage container fee] to be determined by rule adopted pursuant to chapter 91 for each deposit beverage container redeemed by a consumer which is transported out-of-state or received by an approved in-state company for an approved end use for recycling or received by a department permitted recycling facility."

SECTION 6. Section 342G-102, Hawaii Revised Statutes, is repealed.

["[§342G-102] Deposit beverage container fee. (a) Beginning on October 1, 2002, every deposit beverage distributor shall pay to the department a deposit beverage container fee on each polyethylene terephtalte, high density polyethylene, or metal deposit beverage container manufactured in or imported into the State. The fee shall be imposed only once on the same beverage container. The fee shall be 0.5 cents per beverage container.

(b) Beginning on October 1, 2004 every deposit beverage distributor shall pay to the department a deposit beverage container fee on each deposit beverage container manufactured in or imported into the State. The fee shall be imposed only once on the same beverage. The fee shall be 1 cent per beverage container.

(c) No county shall impose or collect any assessment or fee on deposit beverage containers for the same or similar purpose that is the subject of this chapter.

(d) Beginning January 1, 2005, the deposit beverage container fees shall be based on a previous calendar quarter's recycling rates as established by rules. The rates shall be as follows, based on the number of containers sold and the number recovered during a previous quarter:

(1) If the recovery rate is seventy per cent or less: 1 cent per container; and

(2) If the recovery rate is greater than seventy per cent: 1.5 cent per container."]

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 2003.

INTRODUCED BY:

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