S.B. NO.



S.D. 2


H.D. 2














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

"Part   .  Single-USE checkout bag fee

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

"Business" means any commercial enterprise or establishment, including sole proprietorships, joint ventures, partnerships, and corporations, or any other legally cognizable entity, and includes all employees of the business or any independent contractors associated with the business.

"Reusable bag" means a bag with handles that is specifically designed and manufactured for multiple reuse and is:

(1) Made of cloth or other machine washable fabric; or

(2) Made of other durable material suitable for re-use, including plastic that is at least 2.25 mils thick.


"Single-use checkout bag":

(1) Means a bag made of plastic that is less than 2.25 mils thick, or a paper package or sack, whether recyclable or non-recyclable, that is provided by a business to a customer, and is designed for one-time use to contain and transport merchandise; and

(2) Does not include:

(A) Bags used by customers inside a business to package loose items, such as fruits, vegetables, nuts, grains, or candies, or small hardware items;

(B) Bags used to contain or wrap frozen foods, meat or fish, flowers or potted plants, or other items to contain dampness;

(C) Bags used to protect or transport prepared foods or bakery goods;

(D) Bags provided by pharmacists to contain prescription medications;

(E) Newspaper bags;

(F) Door-hanger bags;

(G) Laundry, dry cleaning, or garment bags, including bags provided by hotels to guests to contain wet or dirty clothing;

(H) Bags sold in packages containing multiple bags intended for use as garbage, pet waste, or yard waste bags; or

(I) Bags used to contain live animals, such as fish or insects sold in pet stores.

"Small business" means a business that has grossed $250,000 or less in revenues in the previous year.

342H-B  Distribution of single-use checkout bags; fee.  (a) Beginning January 1, 2012, all businesses in the State shall charge and collect a fee of 10 cents for each single-use checkout bag that is provided to customers; provided that a business may provide single-use checkout bags to any customer participating in federally-approved nutrition assistance programs, including the supplemental nutrition assistance program and the special supplemental nutrition program for women, infants, and children.

(b) Businesses subject to the requirements of this part shall indicate on each customer transaction receipt the number of single-use checkout bags provided and the amount of the fee charged.

(c) Nothing in this part shall preclude businesses from making reusable bags available for sale to customers.

(d) A business may retain 20 per cent of the fees collected that shall be subject to chapters 235 and 237.

342H-C  Remittance of fees.  (a)  Not later than the last day of each month, each business subject to the requirements of this part shall remit to the department the fees collected pursuant to section 342H-B during the immediately preceding month; provided that a small business may remit the fees on a quarterly basis on the last day of the month following the end of a quarter.

(b)  Payments and receipts of fees shall be reported on forms prescribed by the director. Any proprietary information obtained by the department shall be kept confidential and shall not be disclosed to any other person.

(c)  Businesses shall be subject to penalties and interest for late or underpaid fees.

(d)  All fees collected by the department pursuant to this part shall be deposited as follows:

(1) The first $        into a special account in the state general fund to be expended by the department for expenses related to the administration and enforcement of this part; and

(2) Any remaining funds into the general fund.

342H-D  Violations.  (a) It shall be a violation of this part for any business that is subject to the requirements of this part to pay or otherwise reimburse a customer for any portion of the fee required to be charged and collected pursuant to section 342H-B.

(b) Violations of this part or any rule adopted pursuant to this part shall be subject to a fine of not less than $1,000 for each violation.

342H-E  Preemption.  Except for any county ordinance regulating single-use checkout bags in effect prior to the effective date of this part, this part shall preempt the powers of any county to regulate the use of single-use checkout bags; provided that in counties where an ordinance regulating single-use checkout bags is in effect, the fee established under section 342H-B shall be applicable only to single-use checkout bags made of paper.

342H-F  Rules.  The director shall adopt rules, pursuant to chapter 91, as may be necessary for the purposes of 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.  This Act shall take effect on July 1, 2030; provided that section 342H-B(d) of section 1 of this Act shall be repealed on June 30, 2012.


Report Title:

Environmental Protection; Plastic Checkout Bags; Fee



Requires businesses in the State to collect a 10-cent fee for each single-use checkout bag provided to a customer.  Allows for exemptions.  Allows businesses to keep twenty per cent of the fees, subject to income and general excises taxes, for the first year.  Requires fees to be collected on paper bags in counties that currently have ordinances banning plastic bags.  Effective July 1, 2030. (SB1363 HD2)




The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.