THE SENATE

S.B. NO.

1134

TWENTY-SIXTH LEGISLATURE, 2011

 

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 sustaining high container redemption levels in the deposit beverage container program depends on conveniently located redemption centers for customers.  To date, there have been many challenges to locating independently operated redemption centers within a two-mile radius of retail dealers and providing more convenient locations in rural areas.

     The legislature further finds retail dealers in other states with similar redemption programs are also required to be redemption centers.  However, in the past, the legislature has recognized that many retail dealers in Hawaii have limited retail space in their establishments and that their floor space is extremely valuable.  Therefore, the high cost of doing business in Hawaii may be prohibitive to establishing redemption areas within smaller retail establishments.

     The purpose of this Act is to increase convenience for consumers and facilitate participation in the deposit beverage container program by requiring certain retail dealers with more than seventy-five thousand square feet of interior space to operate redemption centers if the State's deposit container redemption rate drops below an average of seventy-five per cent for eight consecutive quarters.  However, if the State's deposit container redemption rate reaches or exceeds an average of seventy-five per cent for eight consecutive quarters, then the governor is authorized to suspend the redemption center requirements.

     SECTION 2.  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[.];

provided that for large dealers, as defined in subsection (i), the exemptions described in paragraphs (1), (2), and (7) shall be subject to subsections (f) and (g).  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)  Publication by the governor of a first notice of unavailability of exemptions for large dealers.  If the statewide redemption rate for deposit beverage containers for the preceding eight quarters, as reported to the governor by the department of health, falls below seventy-five per cent, the governor shall publish a notice statewide, in accordance with section 1-28.5, which shall:

     (1)  Suspend for large dealers the exemptions described in subsection (b) (1), (2), and (7), thereby requiring large dealers, who otherwise would have qualified under any of those exemptions, to operate a redemption center in compliance with subsection (a) within one year from the date of publication of the governor's first notice; and

     (2)  Suspend the department of health's reporting requirements under subsection (h) for three years.

Upon the expiration of the three-year period under paragraph (2), the department of health shall automatically recommence reporting to the governor as required under subsection (h).  Thereafter, if the statewide redemption rate for deposit beverage containers for the preceding eight quarters, as reported to the governor by the department of health, increases to at least seventy-five per cent, the governor, by publication of a notice statewide in accordance with section 1-28.5, may reinstate for large dealers the exemptions under subsection (b)(1), (2), and (7), thereby allowing large dealers who qualify for any of those exemptions to be exempt from operating a redemption center.

     (g)  Publication by the governor of a second or subsequent notice of unavailability of exemptions for large dealers.  After any reinstatement of the exemptions under subsection (b)(1),(2), and (7), if the statewide redemption rate for deposit beverage containers for the preceding eight quarters, as reported to the governor by the department of health, falls below seventy-five per cent, the governor shall publish a notice statewide, in accordance with section 1-28.5, which shall:

     (1)  Suspend for large dealers the exemptions described in subsection (b) (1), (2), and (7), thereby requiring large dealers, who otherwise would have qualified for any of those exemptions, to operate a redemption center in compliance with subsection (a) within six months from the date of publication of the governor's notice; and

     (2)  Suspend the department of health's reporting requirements under subsection (h) for 2.5 years.

Upon the expiration of the 2.5-year period under paragraph (2), the department of health shall automatically recommence reporting to the governor as required under subsection (h).  Thereafter, if the statewide redemption rate for deposit beverage containers for the preceding eight quarters, as reported to the governor by the department of health, increases to at least seventy-five per cent, the governor, by publication of a notice statewide in accordance with section 1-28.5, may reinstate for large dealers the exemptions under subsection (b)(1), (2), and (7), thereby allowing large dealers who qualify under any of those exemptions to be exempt from operating a redemption center.

     (h)  Unless the department of health's duty to report the statewide rate of redemption has been suspended by subsection (f) or (g), the department of health shall:

     (1)  Determine, within     days of the end of each quarter, the average statewide redemption rate for deposit beverage containers for the preceding eight quarters; and

     (2)  Report that average statewide redemption rate to the governor, within       days after the end of the quarter, by indicating whether the statewide redemption rate is below, at, or above seventy-five per cent.

     (i)  For purposes of this section, "large dealer" shall mean any dealer having greater than seventy-five thousand square feet of interior space."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

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

 

INTRODUCED BY:

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Report Title:

Deposit Beverage Container Program; HI-5; Large Dealer; Redemption Center

 

Description:

Requires certain retail dealers with more than seventy-five thousand square feet of interior space to operate redemption centers within one year of a governor's publication of a notice declaring that the statewide redemption rate for the preceding eight quarters has fallen below 75%.  If the redemption rate falls below 75% in subsequent measurement periods, then larger retailers are required to resume operating redemption centers within six months of the governor's publication notice.

 

 

 

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