Report Title:

Deposit Beverage Container Program

Description:

Make clarifying amendments to the Deposit Beverage Container Program. (SB1611 HD1)

THE SENATE

S.B. NO.

1611

TWENTY-SECOND LEGISLATURE, 2003

H.D. 1

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. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235-    Additional exemptions. This chapter shall not apply to amounts received as a beverage container deposit collected under chapter 342G, part VIII."

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;] 342G-111;

(2) All revenues generated from the deposit beverage container deposit as described under sections [342G-105 and] 342G-110[;] and 342G-111; and

(3) All accrued interest from this fund."

SECTION 3. Section 342G-110, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The deposit on each filled deposit beverage container shall be paid by the deposit beverage distributor, who manufactures or imports beverages in deposit beverage containers. Payment and reporting of the deposits shall be in accordance with section [342G-105.] 342G-111. The deposits shall be deposited into the deposit beverage container deposit special fund as described in section 342G-104."

SECTION 4. Section 342G-111, Hawaii Revised Statutes, is amended to read as follows:

"[[]§342G-111[]] Sales of beverages in deposit beverage containers[.] and payment. (a) Beginning January 1, 2005, every deposit beverage distributor who pays a deposit shall charge the dealer or consumer a deposit equal to the refund value for each deposit beverage container sold in Hawaii. The deposit charge may appear as a separate line item on the invoice.

(b) Each dealer shall charge the consumer the deposit beverage container deposit at the point of sale of the beverage excluding sales for on-premises consumption. The deposit charge may appear as a separate line item on the invoice.

(c) Each deposit beverage distributor shall generate a monthly report to the department of total sales to dealers or consumers. All information submitted and contained in the monthly reports including commercial and financial information shall be treated as confidential and shall be protected to the extent allowable by state law.

(d) Beginning January 1, 2005, payment of the deposit beverage container fee and deposits as described in section 342G-110 shall be made monthly based on sale reports of the deposit beverage distributors.

(e) 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 5 cents. Payment shall be made by check or money order payable to the "Department of Health, State of Hawaii". All sales 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.

(f) All importers and manufacturers shall submit an annual report to the department by October 15, 2004, and each October 15th thereafter. The report form shall be supplied by the department and shall contain the quantities of deposit beverage containers imported or manufactured during the previous year by material size and type. The report shall cover the period from October 1st until September 30th of the reporting year."

SECTION 5. Section 342G-113, Hawaii Revised Statutes, is amended by amending subsections (a), (b), and (c) to read as follows:

"(a) Except as provided in subsection (b), a dealer shall:

(1) Operate a redemption center by accepting all types of empty deposit beverage containers with a Hawaii refund value;

(2) Pay to the redeemer the full refund value for all deposit beverage containers which bear a valid Hawaii refund value; and

(3) Ensure each deposit beverage container collected is recycled, and forward documentation necessary to support claims for payment as stated in section 342G-119, or rules adopted under this part.

(b) Subsection (a) shall not apply to any dealer:

(1) Who is located in a high density population area as defined by the director in rules, and within two miles of a certified redemption center that is operated independently from a dealer;

(2) Who is located in a rural area as defined by rule;

(3) Who subcontracts with a certified redemption center for operation on the dealer's premises;

(4) Whose sale of deposit beverage containers are only via vending machines;

(5) Whose place of business is less than five thousand square feet of interior space;

(6) Who can demonstrate physical hardship, or financial hardship, or both, based on specific criteria established in rules; or

(7) Who meet other criteria established by the director.

Notwithstanding paragraphs (1) and (2), the director may allow the placement of redemption centers at greater than prescribed distances to accommodate geographical features while [assuring] ensuring adequate consumer convenience.

(c) All dealers, regardless of the square footage of the dealer's place of business, shall post a clear and conspicuous sign at [each] the primary public entrance to the dealer's place of business, which specifies the [name,] address[,] and hours of operation of the closest nondealer redemption center locations."

SECTION 6. Section 342G-114, Hawaii Revised Statutes, is amended to read as follows:

"[[]§342G-114[]] Redemption centers. (a) Prior to operation, redemption centers shall be certified by the department.

(b) Applications for certification as a redemption center shall be filed with the department [of health] on forms prescribed by the department.

(c) The State, at any time, may review the certification of a redemption center. After written notice to the person responsible for the establishment and operation of the redemption center and to the dealers served by the redemption center, the [State,] department, after it has afforded the redemption center operator a hearing in accordance with chapter 91, may withdraw the certification of the center if it finds that there has not been compliance with applicable laws, rules, permit conditions, or certification requirements.

(d) Redemption centers shall:

(1) Accept all types of empty deposit beverage containers for which a deposit has been paid;

(2) Verify that all containers to be redeemed bear a valid Hawaii refund value;

(3) Pay to the redeemer the full refund value for all deposit beverage containers, except as provided in section 342G-116;

[(4) Crush or destroy all deposit beverage containers that are accepted at the time of redemption;

(5)](4) Ensure each container collected is recycled through a contractual agreement with an out-of-state recycler or an in-state recycling facility permitted by the department; provided that this paragraph shall not apply if the redemption center is operated by a recycler permitted by the department; and

[(6)](5) Forward the documentation necessary to support claims for payment as stated in section 342G-119.

(e) Redemption centers' redemption areas shall be maintained in full compliance with applicable laws and with the orders and rules of the department, including permitting requirements, if deemed necessary, under chapter 342H.

(f) The department may:

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

(2) Set minimum distances between redemption centers;

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

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

SECTION 7. Section 342G-117, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

"(b) [Not less than] Within thirty days before paying the handling fees required by this section, the department shall publish a notice statewide in accordance with applicable state law of the recovery rate for the calendar quarter for which the handling fee will be paid. [Payments for handling fees shall be made not less than six months after the completion of the calendar quarter to which the payment applies.]

(c) The handling fee shall be paid in addition to the refund value of each such empty deposit beverage container. 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. The department may choose to pay the handling fee and refund value on the basis of the total weight of the containers received by material type and the average weight of each container type."

SECTION 8. Section 342G-105, Hawaii Revised Statutes, is repealed.

["[§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 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect upon its approval.