Report Title:

Deposit Beverage Container Program; Tweaking


Increases recovery rate and therefore handling fee to increase compensation to businesses. Extends the payback provision of handling fees by the State from 6 months to 9 months. Extends the area between a dealer and a certified redemption center from 2 to 5 miles.


S.B. NO.








relating to recycling.



SECTION 1. Section 342G-102, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (b) to read:

"(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]     cents per beverage container."

2. By amending subsection (d) to read:

"(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]     cents per container; and

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

SECTION 2. Section 342G-113, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(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] five 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 adequate consumer convenience."

SECTION 3. Section 342G-113, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

(d) If there is no redemption center within the [two-mile] five-mile radius of a dealer due to the criteria described in subsection (b), then the respective county and the State shall determine the need for a redemption center in that area. If a redemption center is deemed necessary, then the State, with assistance from the county, shall establish the redemption center with funding from the deposit beverage container deposit special fund."

SECTION 4. Section 342G-117, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Not less than 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] nine months after the completion of the calendar quarter to which the payment applies."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.