Report Title:

Deposit Beverage Container Program; Retail Dealer; Redemption Center



Extends the reverse vending machine rebate program and increases the financial incentives. Appropriates moneys to the counties to plan and operate county recycling programs. Effective October 1, 2009, requires retail dealers with more than seventy‑five thousand square feet of retail space to operate redemption centers. (SD1)


H.B. NO.



H.D. 2


S.D. 1
















SECTION 1. The legislature finds that the deposit beverage container program has encouraged increased recycling of glass, plastic, and aluminum beverage containers in the State. However, the legislature finds that more could be done to make the recycling program easier and more accessible to the public, thereby encouraging yet more recycling of containers. The legislature also finds that access to recycling facilities may be improved by increasing the number of redemption centers and reverse vending machines that are available to the public. Currently, the department of health offers a rebate to qualified persons who install a reverse vending machine and maintain operations as a redemption center. However, this rebate program will expire on June 30, 2009. The legislature further finds that recycling throughout the State may be increased by extending the reverse vending machine rebate program and increasing its financial incentives. Additionally, the legislature finds that each county has the potential to increase recycling by planning and operating its own recycling programs.

Accordingly, the purpose of this part is to:

(1) Extend the reverse vending machine rebate program and increase the financial incentives offered by the program; and

(2) Appropriate moneys to the counties to plan and operate county recycling programs.

SECTION 2. Section 342G-102.5, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) The department shall provide a rebate of [fifty]          per cent of the actual cost of each reverse vending machine, including shipping and general excise tax, and up to          per cent of the operating cost during the first two years for each reverse vending machine purchased by a person:

(1) [That] Who agrees to maintain operations as a certified redemption center for a minimum period of two years; or

(2) [That] Who is serviced by a recycler that is a certified redemption center; and

(3) [That] Who has entered into a service agreement with the recycler for a minimum period of two years;

provided that rebates shall not exceed $3,000,000 in the aggregate in any fiscal year.

(b) A rebate provided under this section shall be granted for a reverse vending machine that:

(1) Is installed and operational by [December 31, 2007;] June 30, 2012;

(2) Is accessible to the general public; and

(3) Tenders vouchers or receipts for the returned containers that are redeemable by the person at a location on the person's premises that is accessible to the general public."

SECTION 3. Act 228, Session Laws of Hawaii 2005, as amended by Act 231, Session Laws of Hawaii 2006, is amended by amending section 6 to read as follows:

"SECTION 6. This Act shall take effect upon its approval; provided that:

(1) This Act shall be repealed on June 30, [2009,] 2014, and section 342G-104, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the effective date of this Act; and

(2) Any action initiated by the department of health pursuant to section 342G-A(e), Hawaii Revised Statutes, shall be allowed to continue until final resolution of the action is achieved."

SECTION 4. There is appropriated out of the deposit beverage container deposit special fund the sum of $           or so much thereof as may be necessary for fiscal year 2009-2010 for grants-in-aid to the several counties to plan and operate county recycling programs designed to increase recycling rates. The specific county appropriations are as follows:

(1) City and county of Honolulu $          

(2) Hawaii county $          

(3) Maui county $          

(4) Kauai county $         .

The sum appropriated shall be expended by the respective counties for purposes of this Act.



SECTION 5. Section 342G-113, Hawaii Revised Statutes, is amended to read as follows:

"342G-113 Redemption of empty deposit beverage containers. (a) Except as provided in subsection (b), a dealer shall:

(1) Operate a redemption center by July 1, 2005, and shall accept 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 that 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] in accordance with 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 of a dealer;

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

(3) Who subcontracts with a certified redemption center to be operated on the dealer's premises;

(4) Whose sales 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 or financial hardship, or both, based on specific criteria established by rule; or

(7) Who meets 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 ensuring adequate consumer convenience.

(c) Regardless of the square footage of a dealer's place of business, dealers who are not redemption centers shall post a clear and conspicuous sign at the primary public entrance of the dealer's place of business that specifies the name, address, and hours of operation of the closest redemption center locations.

(d) If there is no redemption center within the two-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.

(e) Businesses that sell deposit beverages for on-premises consumption, such as hotels, bars, and restaurants, shall collect used deposit beverage containers from the patron and either use a certified redemption center for the collection of containers or become a certified redemption center.

(f) Any dealer having greater than seventy-five thousand square feet of interior space and to which subsection (b)(3), (4), or (6) cannot be applied, shall operate a redemption center and shall accept all types of empty deposit beverage containers that bear a valid Hawaii refund value."



SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2009; provided that part II of this Act shall take effect on October 1, 2009.