THIRTY-FIRST LEGISLATURE, 2021
STATE OF HAWAII
A BILL FOR AN ACT
relating to product stewardship programs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that municipal product stewardship programs shift the costs of paying for solid waste disposal and recycling from the municipality to product manufacturers. Funds for product stewardship programs go directly to states, cities, and towns to help cover the costs of recycling and rapidly expand their programs with infrastructure investments. This approach retains the right and ability of organized citizens and small businesses to oversee and control local decision-making.
The purpose of this Act is to establish a municipal product stewardship program.
SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:
MUNICIPAL PRODUCT STEWARDSHIP PROGRAM
§ -1 Definitions. As used in this chapter:
"Covered materials and products" means, regardless of recyclability:
(1) Any part of a package or container, including material that is used for the containment, protection, handling, delivery, and presentation of a product that is sold, offered for sale, imported, or distributed in the State;
(2) Paper products; and
(3) Primary, secondary, and tertiary packaging intended for the consumer market; service packaging designed and intended to be filled at the point of sale, including carry–out bags, bulk goods bags, packaging, and take–out and home delivery food service prescription bottles; paper sold as a product; printed materials; and beverage containers.
"Covered materials and products" shall not include any literary, text, or reference bound book.
"Department" means the department of health.
"Producer" means any person that manufactures a covered material or product under the person's own name or brand and either:
(1) Sells, offers for sale, distributes, or imports a covered material or product as owner or licensee of a trademark or brand under which a covered material or product is sold or distributed in the State; or
(2) Sells, offers for sale, or distributes a covered material or product in the State.
"Producer" shall not include a local government.
"Stewardship organization" means a nonprofit organization created by a group of producers to implement a stewardship plan.
"Stewardship plan" means a covered materials and products stewardship plan developed by a producer or stewardship organization in accordance with this section.
§ -2 Stewardship plan required. (a) On or before January 1, 2022, each producer shall, individually or as part of a stewardship organization, submit a stewardship plan to the department for review and approval.
(b) On or after June 1, 2022, a producer may not sell, offer for sale, distribute, or import for sale or distribution covered materials or products for use in the State unless the producer, individually or as part of a stewardship organization, has an approved stewardship plan on file with the department.
(c) This provision does not apply to a producer that:
(1) Generated less than $1,000,000 in gross revenue during the immediately preceding calendar year;
(2) Sold, offered for sale, or distributed for sale in the State during the immediately preceding calendar year less than one ton of covered materials or products; or
(3) Conducted all of the covered materials or products sales in the State during the immediately preceding calendar year at a single point of retail sale that was not supplied or operated as part of a franchise; and on request by the department, provides to the department sufficient information to demonstrate that the producer meets the conditions of this section.
§ -3 Stewardship plan requirements. A stewardship plan made pursuant to this chapter shall:
(1) List the producers and brands covered by the stewardship plan, including:
(A) Each participating producer and the stewardship organization’s contact information; and
(B) Each brand of covered materials and products covered by the stewardship plan;
(2) Include performance goals for a minimum post-consumer recycled material content rate and a minimum recycling rate for covered materials or products that includes, at a minimum, a goal for:
(A) All single-use packaging and products to be at least seventy-five per cent post-consumer content by June 1, 2025;
(B) All single-use packaging and products to be readily recyclable or compostable by June 1, 2028; and
(C) All single-use plastic packaging and single-use plastic service ware to be reduced, to the maximum extent practicable, and by not less than twenty-five per cent by June 1, 2030;
(3) Describe, in accordance with section -4, the financing method that will be used to implement the stewardship plan;
(4) Describe how the performance goals under paragraph (2) of this subsection will be met or exceeded;
(5) Describe how stakeholder comments were considered in the development of the stewardship plan;
(6) Describe how staffing and administering the implementation of the stewardship plan will be handled;
(7) Describe how producers participating in a stewardship plan will work together to reduce packaging through product design and program innovations;
(8) Describe the actions taken or that will be taken for public outreach, education, and communication, taking into account that public outreach, education, and communication shall:
(A) Promote the proper end–of–life management of covered materials and products, including beverage containers;
(B) Provide information on how to prevent litter of covered materials and products, including beverage containers; and
(C) Provide recycling and composting instructions to the extent practicable;
(9) Be consistent statewide, taking into account differences among local laws and processing capabilities;
(10) Be easy to understand, easily accessible, and provide for outreach and education that are designed to achieve covered materials and products management goals and requirements, including the prevention of contamination of covered materials and products;
(11) Be coordinated across programs to avoid confusion for consumers;
(12) Be developed in consultation with local governments and other stakeholders; and
(13) Include any other information that is required by the department.
§ -4 Stewardship plan financing. The financing method to be used by a producer or stewardship organization to implement a stewardship plan under this chapter shall:
(1) Provide the method for reimbursing local governments for costs associated with collecting, transporting, and processing covered materials and products that are listed in the stewardship plan;
(2) Establish a fee structure for participating producers that is set in a manner to cover costs associated with:
(A) Implementing the stewardship plan, including the administrative costs of a producer or stewardship organization;
(B) Reimbursing local governments for costs in accordance with section -5;
(C) The administration, review, oversight, and enforcement of the stewardship plan by the department;
(D) Describing the incentives to encourage participating producers to engage in waste reduction and recycling activities;
(E) Describing the incentives to encourage participating producers to engage in waste reduction and recycling activities;
(F) Describing the disincentives to discourage designs or practices that increase the cost of managing covered materials and products;
(G) Being evaluated by an independent financial auditor, as designated by the department, to ensure the costs of implementing the stewardship plan are covered; and
(H) Meeting any other reasonable requirement established by the department.
§ -5 Reimbursement. The counties may request reimbursement from a producer or stewardship organization that has an approved stewardship plan on file with the department for costs associated with collecting, transporting, and processing covered materials and products that are listed under the stewardship plan, in accordance with:
(1) The requirements of the producer, as established under the stewardship plan; and
(2) Any other requirement adopted by the department by regulation.
§ -6 Stewardship plan approval. (a) On or before June 1, 2023, and each June 1 thereafter, a producer shall submit a report to the department for approval, in a manner required by the department, evaluating the progress made toward meeting stewardship plan requirements and goals for the immediately preceding year.
(b) The department may rescind approval of a stewardship plan at any time.
§ -7 Rules. The department shall adopt rules, pursuant to chapter 91, establishing procedures necessary to implement or administer this chapter.
§ -8 Penalties. A producer or stewardship organization that violates this chapter, or any rule established pursuant to section -7 shall be fined as follows:
(1) $5,000 for a first violation;
(2) $10,000 for a second violation; and
(3) $20,000 for a third violation.
§ -9 Joint and several liability. If a penalty is imposed on a stewardship organization under this chapter, each producer participating in the stewardship organization shall be jointly and severally liable for the payment of the penalty."
SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 4. This Act shall take effect upon its approval.
Municipal Product Stewardship Program; Packaging; Recycling
Establishes the Municipal Product Stewardship Program.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.