Report Title:

Advance Disposal Fee; Hazardous and Large Goods


Requires an advance disposal fee to support the disposal of hazardous and large goods.


S.B. NO.









relating to solid waste.



SECTION 1. Chapter 342G, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . HAZARDOUS AND large GOODS recovery

342G-A Definitions. As used in this part, unless the context requires otherwise:

"Hazardous and large goods incentive" means an incentive paid to licensed recyclers for recycling hazardous or large goods. Such 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.

"Hazardous and large goods recovery program" means a program for hazardous and large goods recovery and reuse for purposes including but not limited to hazardous and large goods reuse or recycling whereby goods are refurbished, processed for shipment out of the State, or crushed into aggregate substitute.

"Hazardous goods" means products that contain any hazardous materials as specified in 40 Code of Federal Regulations Part 261.

"Hazardous or large goods importer" means any person who is engaged in the manufacture of hazardous or large goods within the State or who imports hazardous or large goods from outside the State for sale or use within the State. The term includes federal agencies and military distributors, but does not include airlines and shipping companies that merely transport hazardous or large goods.

"Import" means to buy, bring, or accept delivery of hazardous or large goods from an address, supplier, or any entity outside of the State.

"Large goods" mean bulky products or parts of products that may or may not contain hazardous materials. Large goods include but are not limited to: automobiles and automobile parts; household and commercial appliances; computers, computer parts, and computer equipment; tires; lead-acid; and lithium batteries.

342G-B Advance disposal fee. (a) An advance disposal fee shall be paid on every hazardous or large good imported into the State. The fee shall be imposed only once on the same goods, and shall be paid to the county at the time and point of sale. Beginning on September 1, 2004, each county shall impose and collect an advance disposal fee on large or hazardous goods that is equivalent to the full cost to manage each of those goods at the end of its useful life. This full cost may be set by the council in consideration of the administration of programs and the value of money over the anticipated lifespan of the item. Fees shall be set for each general category of items and may be changed as appropriate to meet the needs of the program.

(b) No county shall impose or collect any assessment or fee on hazardous or large goods for the same or similar purpose that is the subject of this chapter.

342G-C Hazardous or large goods importers; registration, recordkeeping requirements. (a) By September 1, 2004, all hazardous or large goods importers operating within the State shall register with the county in which their primary place of business is located, using forms prescribed by the department, and shall notify the county of any change in address. After September 1, 2004, any person who desires to conduct business in this State as a hazardous or large goods importer shall register with the county in which their primary place of business is located, no later than one month prior to the commencement of the business.

(b) All hazardous or large goods importers shall maintain records reflecting the manufacture of their hazardous or large goods. The records shall identify the type, weight, and quantity of each type of hazardous or large good. 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 hazardous and large goods 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 amount of hazardous or large goods 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 hazardous and large goods recovery, recycling, and reuse in Hawaii through research and demonstration projects.

(d) All moneys distributed to the counties under subsection (b), and not expended 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 Hazardous and large goods inventory report and payment. (a) Payment of the advance hazardous or large goods disposal fee shall be made quarterly based on inventory reports of the hazardous or large goods importers. All hazardous or large goods importers shall submit to the department documentation in sufficient detail that identifies the number and net weight of hazardous or large goods manufactured or imported to the State and sold or distributed, by manufacturer or distributor, during the calendar year.

(b) The amount due from hazardous or large goods importers for the calendar year shall be the sum equal to the weight in pounds of hazardous or large goods 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, except for those importers subject to subsection (d).

(c) A hazardous or large goods importer who imports fewer than five thousand pounds within a one-year period shall be exempt from payment of the fee.

(d) A hazardous or large goods importer who imports five thousand or more pounds of hazardous or large goods, but less than or equal to one hundred thousand pounds of hazardous or large goods, shall be permitted to provide a report and payment of the fee annually, rather than quarterly.

342G-F County hazardous and large goods recovery programs; requirements. (a) All county hazardous and large goods recovery programs shall include some form of hazardous and large goods 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 hazardous and large goods 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 containers for hazardous and large goods 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 material; and

(5) Public education and awareness programs focusing on hazardous and large goods 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. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.