Report Title:
Deposit Beverage Container Program
Description:
Amends the state Deposit Beverage Container Program by removing the deposit and related requirements; provided that every county with a population over 500,000 has fully implemented a comprehensive residential recycling program by December 31, 2005.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1497 |
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TWENTY-THIRD LEGISLATURE, 2005 |
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STATE OF HAWAII |
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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 recycling is an important element of an integrated solid waste management system, which can protect and preserve environmental resources and reduce economic costs to residents and businesses within the state.
The legislature finds that the state deposit beverage container program (state deposit program) under part VIII of chapter 342G, Hawaii Revised Statutes, was enacted before the city and county of Honolulu decided to fully implement a comprehensive residential recycling program.
The legislature further finds that the city and county of Honolulu's comprehensive residential recycling program, when fully implemented, will accept a substantial majority of empty beverage containers currently recycled under the state deposit program. Given that seventy-two per cent of Hawaii's residents live on the island of Oahu and will benefit from the city and county of Honolulu's comprehensive residential recycling program once it is fully implemented, the legislature finds that the need for the state deposit program will be substantially reduced.
Because the legislature finds that the state deposit program has caused Hawaii's residents extreme difficulty in recycling their empty beverage containers and will be unduly burdensome and unnecessarily duplicative once the city and county of Honolulu fully implements its comprehensive residential recycling program, the purpose of this Act is to:
(1) Amend the state deposit program to eliminate the deposit and related requirements; provided that the city and county of Honolulu has fully implemented its comprehensive residential recycling program by December 31, 2005; and
(2) Support county recycling programs by requiring the state to provide revenues from the deposit beverage container fee to counties that have implemented comprehensive residential recycling programs.
SECTION 2. Section 342G-101, Hawaii Revised Statutes, is amended as follows:
1. By adding a new definition to be appropriately inserted and to read:
""Comprehensive residential recycling program" means a county-wide recycling program in which residential recyclable material is collected from a majority of the county's residents and:
(1) Received by an approved in-state company for an approved end use recycling;
(2) Received by a department-permitted recycling facility; or
(3) Transported out-of-state."
2. By amending the definitions of "consumer" and "dealer" to read:
""Consumer" means a person who buys a beverage in a deposit beverage container for use or consumption [and pays the deposit].
"Dealer" means a person who engages in the sale of beverages in deposit beverage containers to a consumer [for off-premises consumption in the State]."
3. By repealing the definitions of "on-premises consumption", "recycling facility", "redeemer", "redemption center", "redemption rate", "refillable beverage container", and "reverse vending machine".
[""On-premises consumption" means to consume deposit beverages by a consumer immediately and within the area under control of the establishment, including bars, restaurants, passenger ships, and airplanes.
"Recycling facility" means all contiguous land and structures and other appurtenances, and improvements on the land used for the collection, separation, recovery, and sale [or] reuse of secondary resources that would otherwise be disposed of as municipal solid waste, and is an integral part of a manufacturing process aimed at producing a marketable product made of postconsumer material.
"Redeemer" means a person, other than a dealer or distributor, who demands the refund value in exchange for the empty deposit beverage container.
"Redemption center" means an operation which accepts from consumers and provides the refund value for empty deposit beverage containers intended to be recycled and ensures that the empty deposit beverage containers are properly recycled.
"Redemption rate" means the percentage of deposit beverage containers redeemed over a reporting period. The percentage is calculated by dividing the number of deposit beverage containers redeemed by the number of deposit beverage containers sold and then multiplying that number by one hundred.
"Refillable beverage container" means any deposit beverage container which ordinarily would be returned to the manufacturer to be refilled and resold.
"Reverse vending machine" means a mechanical device, which accepts one or more types of empty deposit beverage containers and issues a redeemable credit slip with a value not less than the container's refund value. The refund value payments shall be aggregated and then paid if more than one container is redeemed in a single transaction."]
SECTION 3. Section 342G-102, Hawaii Revised Statutes, is amended to read as follows:
"§342G-102 Deposit beverage container fee. (a) Beginning on October 1, 2002, every deposit beverage distributor shall pay to the department a deposit beverage container fee on each polyethylene terephthalate, high density polyethylene, or metal deposit beverage container manufactured in or imported into the [State.] state. The fee shall be imposed only once on the same deposit beverage container. The fee shall be 0.5 [cents] cent per deposit beverage container.
(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.] state. The deposit beverage container fee shall not apply to deposit beverage containers exported for sale outside of the [State.] state. The fee shall be imposed only once on the same deposit beverage container. The fee shall be 1 cent per deposit beverage container.
(c) No county shall impose or collect any assessment or fee on deposit beverage containers for the same or similar purpose that is the subject of this chapter.
[(d) Beginning January 1, 2005, and every August 1 thereafter, the department shall notify deposit beverage distributors in writing of the amount of the deposit beverage container fee. The effective date of changes to the fee amount shall be September 1. The fee shall be based on the redemption rate calculated annually based on the redemption rate information submitted to the department for the previous period of July 1 through June 30. The fee amount shall be as follows:
(1) If the redemption rate is seventy per cent or less: 1 cent per container; and
(2) If the redemption rate is greater than seventy per cent: 1.5 cents per container.]"
SECTION 4. Section 342G-104, Hawaii Revised Statutes, is amended to read as follows:
"§342G-104 Deposit into deposit beverage container [deposit] special fund; use of funds. (a) There is established in the state treasury the deposit beverage container [deposit] special fund, into which shall be deposited:
(1) All revenues generated from the deposit beverage container fee as described under sections 342G-102 and 342G-105;
[(2) All revenues generated from the deposit beverage container deposit as described under sections 342G-105 and 342G-110;] and
[(3)](2) All accrued interest from the fund.
(b) Moneys in the deposit beverage container [deposit] special fund shall be used to reimburse [refund values and pay handling fees to redemption centers. The department may also use the money to:] the department for administering this part and to provide moneys to any county that has certified in writing to the department that it has implemented a comprehensive residential recycling program. The department shall distribute the moneys to the qualifying counties monthly on a per capita basis. A county that receives a portion of the deposit beverage container special fund shall use the money to:
(1) Fund administrative, audit, and compliance activities associated with [collection and payment of the deposits and handling fees of the deposit beverage container] the comprehensive residential recycling program;
(2) Conduct recycling education and demonstration projects;
(3) Promote recyclable market development activities;
(4) Support the handling and transportation of [the deposit beverage containers] recyclable material to end-markets;
(5) Hire personnel to oversee the implementation and administration of the [deposit beverage container] comprehensive residential recycling program, including permitting and enforcement activities; [and]
(6) Fund associated office expenses[.]; and
(7) Advance any other purpose deemed necessary by the county to support its comprehensive residential recycling program."
[(c) Any funds that accumulate in the deposit beverage container deposit special fund shall be retained in the fund unless determined by the auditor to be in excess, after adjustments to the deposit beverage fee, pursuant to the management and financial audits conducted in accordance with section 342G-107.]"
SECTION 5. Section 342G-105, Hawaii Revised Statutes, is amended to read as follows:
"[[]§342G-105[]] Deposit beverage container inventory report and payment. (a) Beginning October 1, 2002, payment of the deposit beverage container fee [and deposits as described in section 342G-110] shall be made monthly based on inventory reports of the deposit beverage distributors. All deposit beverage distributors shall submit to the department documentation in sufficient detail that identifies:
(1) The number of beverages in deposit beverage containers[, by container size and type,] manufactured in or imported [to] into the [State;] state; and
(2) The number of these deposit beverage containers[, by container size and type,] exported [and intended] for [consumption out] sale outside of the [State] state during the reporting period.
(b) The amount due from deposit beverage distributors shall be the net number of deposit beverage containers imported into or manufactured [into] in the [State] state (the total number of containers imported or manufactured less the total number of containers exported for [consumption] sale outside of the [State)] state) multiplied by the [sum of the prevailing] deposit beverage container fee [and the refund value of 5 cents]. Payment shall be made by check or money order payable to the "Department of Health, State of Hawaii". All inventory reports and payments shall be made no later than the fifteenth day of the month following the end of the payment period of the previous month."
SECTION 6. Section 342G-107, Hawaii Revised Statutes, is amended to read as follows:
"[[]§342G-107[]] Management and financial audit. The auditor shall conduct a management and financial audit of the program for fiscal years 2004-2005 and 2005-2006, and for each fiscal year thereafter ending in an even-numbered year. The auditor shall submit the audit report, including [the amount of unredeemed refund value and] recommendations, to the legislature and the department no later than twenty days prior to the convening of [[]the[]] next applicable regular session. The costs incurred by the auditor for the audit shall be reimbursed by the deposit beverage container program special fund. The auditor may contract the audit services of a third party to conduct the audit."
SECTION 7. Section 342G-111, Hawaii Revised Statutes, is amended to read as follows:
"§342G-111 Sales of beverages in deposit beverage containers; distributor report; fee [and deposit payment]. (a) By January 1, 2005, every deposit beverage distributor who pays a deposit beverage container fee to the department shall charge the dealer or consumer a deposit [equal to the refund value] beverage container fee for each deposit beverage container sold in Hawaii. [The deposit charge may appear as a separate line item on the invoice.
(b) Each dealer shall charge the consumer the deposit beverage container deposit at the point of sale of the beverage, excluding sales for on-premises consumption. The deposit charge may appear as a separate line item on the invoice.
(c)] (b) Each deposit beverage distributor shall generate and submit to the department a monthly report on:
(1) The number of deposit beverage containers[, by container size and type,] manufactured in or imported into the [State;] state; and
(2) The number of deposit beverage containers[, by container size and type,] exported [and intended for consumption out] for sale outside of the [State] state during the reporting period.
All information contained in the reports, including confidential commercial and financial information, shall be treated as confidential and protected to the extent allowed by state law.
[(d)] (c) Payment of the deposit beverage container fee [and deposits as described in section 342G-110] shall be made monthly based on reports of the deposit beverage distributors under subsection [(c).] (b).
[(e)] (d) Beginning January 1, 2005, a deposit beverage distributor who annually imports or manufactures one hundred thousand or fewer deposit beverage containers may submit reports and payments required under subsections (b) and (c) [and (d)] on a semi-annual basis; provided that the semi-annual report and payment period shall end on June 30 and December 31 of each year.
[(f)] (e) The amount due from a deposit beverage distributor shall be the net number of deposit beverage containers sold multiplied by the [sum of the prevailing] deposit beverage container fee [and the deposit value of 5 cents]. Payment shall be made by check or money order payable to the "Department of Health, State of Hawaii". All reports and payments shall be made no later than the fifteenth day of the month following the end of the previous payment period.
[(g) The department may allow dealers to charge customers the refund value beginning November 1, 2004; provided that the deposit beverage containers are clearly marked with the refund value and the deposit beverage distributor has paid the refund value on each container to the department. The dealer shall inform customers that the deposits paid prior to January 1, 2005, shall not be redeemable until January 1, 2005.]"
SECTION 8. Section 342G-121, Hawaii Revised Statutes, is amended to read as follows:
"[[]§342G-121[]] Audit authority. The records of the deposit beverage distributor[, dealer, redemption center, and recycling facility] shall be made available, upon request, for inspection by the department, a duly authorized agent of the department, or the auditor. Any proprietary information obtained by them shall be kept confidential and shall not be disclosed to any other person, except:
(1) As may be reasonably required in an administrative or judicial proceeding to enforce any provision of this chapter or any rule adopted pursuant to this chapter; or
(2) Under an order issued by a court or administrative agency hearings officer."
SECTION 9. Section 342G-110, Hawaii Revised Statutes, is repealed.
["[§342G-110] Payment and application of deposits. (a) By January 1, 2005, every deposit beverage container sold in this State shall have a refund value of 5 cents. Each container shall have the refund value clearly indicated on it as provided in section 342G-112.
(b) The refund value is the amount of the deposit required. Once a refund value has been applied to a deposit beverage container, the deposit on that container may not be changed and shall be paid to the State.
(c) The deposit on each filled deposit beverage container shall be paid by the deposit beverage distributor, who manufactures or imports beverages in deposit beverage containers. Payment and reporting of the deposits shall be in accordance with section 342G-105. The deposits shall be deposited into the deposit beverage container deposit special fund as described in section 342G-104.
(d) Deposit beverage distributors who are required under subsection (c) to pay a deposit shall also pay a deposit beverage container fee and register with the State."]
SECTION 10. Section 342G-112, Hawaii Revised Statutes, is repealed.
["§342G-112 Deposit beverage container requirements. (a) Except as provided in subsection (b), every deposit beverage container sold in the State shall clearly indicate the refund value of the container and the word "Hawaii" or the letters "HI". The names or letters representing the names of other states with comparable deposit legislation may also be included in the indication of refund value. The refund value on every deposit beverage container shall be clearly, prominently, and indelibly marked by painting, printing, scratch embossing, raised letter embossing, or securely affixed stickers and shall be affixed on the top or side of the container in letters at least one-eighth inch in size.
(b) Subsection (a) does not apply to any type of refillable glass deposit beverage container which has a brand name permanently marked on it and which has the equivalent of a refund value of at least 5 cents which is paid upon receipt of the container by a dealer or deposit beverage distributor.
(c) All deposit beverage containers that do not indicate the Hawaii refund value by January 1, 2005, and are intended for sale shall be sold with stickers as specified in subsection (d).
(d) Stickers that indicate the Hawaii refund value may be purchased from the department from November 1, 2004, to December 31, 2004. Surplus stickers may be redeemed at the department by March 1, 2005. The cost of a sticker shall be equal to the Hawaii refund value."]
SECTION 11. Section 342G-113, Hawaii Revised Statutes, is repealed.
["§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 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 consumer; and use a certified redemption center for the collection of containers, or become a certified redemption center."]
SECTION 12. Section 342G-114, Hawaii Revised Statutes, is repealed.
["§342G-114 Redemption centers. (a) Prior to operation, redemption centers shall be certified by the department.
(b) Applications for certification as a redemption center shall be filed with the department of health on forms prescribed by the department.
(c) The State, at any time, may review the certification of a redemption center. After written notice to the person responsible for the establishment and operation of the redemption center and to the dealers served by the redemption center, the State, after it has afforded the redemption center operator a hearing in accordance with chapter 91, may withdraw the certification of the center if it finds that there has not been compliance with applicable laws, rules, permit conditions, or certification requirements.
(d) Redemption centers shall:
(1) Accept all types of empty deposit beverage containers for which a deposit has been paid;
(2) Verify that all containers to be redeemed bear a valid Hawaii refund value;
(3) Pay to the redeemer the full refund value in either cash or a redeemable voucher for all deposit beverage containers, except as provided in section 342G-116;
(4) Ensure each deposit beverage container collected is recycled through a contractual agreement with an out-of-state recycler or an in-state recycling facility permitted by the department; provided that this paragraph shall not apply if the redemption center is operated by a recycler permitted by the department; and
(5) Forward the documentation necessary to support claims for payment as stated in section 342G-119.
(e) Redemption centers' redemption areas shall be maintained in full compliance with applicable laws and with the orders and rules of the department, including permitting requirements, if deemed necessary, under chapter 342H."]
SECTION 13. Section 342G-115, Hawaii Revised Statutes, is repealed.
["§342G-115 Reverse vending machine requirements. Reverse vending machines may be used by redemption centers to satisfy the requirements of section 342G-113. Reverse vending machines shall accept any type of empty deposit beverage container and pay out the full refund value in either cash or a redeemable voucher for those containers that bear a valid Hawaii refund value. If the reverse vending machine is unable to read the barcode to calculate the refund value, then the department may specify a delayed date in which the reverse vending machines may be used. The reverse vending machine shall be routinely serviced to ensure proper operation and continuous acceptance of empty deposit beverage containers and payment of the refund value."]
SECTION 14. Section 342G-116, Hawaii Revised Statutes, is repealed.
["[§342G-116] Refusal of refund value payment for a deposit beverage container. Redemption centers shall refuse to pay the refund value on any broken, corroded, dismembered, flattened deposit beverage container, or any deposit beverage container which:
(1) Contains a free flowing liquid;
(2) Does not properly indicate a refund value; or
(3) Contains a significant amount of foreign material."]
SECTION 15. Section 342G-117, Hawaii Revised Statutes, is repealed.
["§342G-117 Handling fees and refund values for certified redemption centers. (a) The department shall pay to each certified redemption center a handling fee of not less than the prevailing deposit beverage container fee for each deposit beverage container redeemed by a consumer that is:
(1) Transported out-of-state;
(2) Received by an approved in-state company for an approved end use for recycling; or
(3) Received by a department-permitted recycling facility.
(b) The department shall evaluate the handling fee at least once per year. If the department changes the amount of the handling fee, the department shall publish notice of the change within thirty days of its determination.
(c) The handling fee shall be paid in addition to the refund value of each empty deposit beverage container. Payments for handling fees shall be based on redemption center reports submitted to the department; provided that there is no discrepancy in the reports. The department may choose to pay the handling fee and refund value on the basis of the total weight of the containers received by material type and the average weight of each container type.
(d) A handling fee and refund value may only be paid once for each container redeemed by a consumer and claimed by a redemption center in accordance with section 342G-119."]
SECTION 16. Section 342G-119, Hawaii Revised Statutes, is repealed.
["§342G-119 Redemption center reporting. The department shall pay certified redemption centers handling fees and refund values as described in section 342G-117, based on collection reports submitted by the redemption centers. All redemption centers shall submit to the department the following information on forms prescribed by the department, which information shall include at a minimum:
(1) The number or weight of deposit beverage containers of each material type accepted at the redemption center for the reporting period;
(2) The amount of refunds paid out by material type;
(3) The number or weight of deposit beverage containers of each material type transported out-of-state or to a permitted recycling facility; and
(4) Copies of out-of-state transport and weight receipts or acceptance receipts from permitted recycling facilities. If the redemption center and the recycling facility are the same entity, copies of out-of-state transport and weight receipts, or documentation of end use accepted by the department, shall also be included.
The requests for payment shall be no more frequent than two times per month."]
SECTION 17. Section 342G-120, Hawaii Revised Statutes, is repealed.
["[§342G-120] Recycling facility reporting. Recycling facilities, in addition to any requirements under chapter 342H, shall prepare or maintain the documents involving empty beverage containers, as required by the department."]
SECTION 18. Section 342G-122, Hawaii Revised Statutes, is repealed.
["[§342G-122] Advisory committee. The department shall convene an advisory committee to assist it in developing any rules needed to implement this chapter. The department shall select members of the committee so as to obtain input on the state level as well as assess the impact on each individual county, consumers, recyclers, and the beverage industry. Members of the committee shall be appointed by the director and shall serve at the director's pleasure. A simple majority of the committee members shall constitute a quorum for the purposes of recommending rules and providing input to the director."]
SECTION 19. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 20. This Act shall take effect on January 1, 2006; provided that every county with a population over five hundred thousand has certified to the department of health in writing by December 31, 2005, that it has fully implemented a comprehensive residential recycling program as defined by this Act.
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