HB1410

SECTION 1. 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;

(3) 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:

(1) Fund administrative, audit, and compliance activities associated with collection and payment of the deposits and handling fees of the deposit beverage container 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 to end-markets;

(5) Hire personnel to oversee the implementation of the deposit beverage container program, including permitting and enforcement activities; [~~and~~]

(6) Purchase and maintain reverse vending machines pursuant to subsection (c); and

[~~(6)~~] (7) Fund associated office expenses.

[~~(c) Any funds that accumulate in the deposit beverage container deposit special fund shall be retained in the fund unless determined by the legislature to be in excess.~~]

(c) There is established within the deposit beverage container deposit special fund a reverse vending machine endowment subaccount. All accrued interest pursuant to subsection (a)(3) shall be deposited into the subaccount. The department shall expend moneys in the subaccount to purchase and maintain reverse vending machines pursuant to section 342G-115(d).

(d) All moneys in excess of $ remaining on balance in the deposit beverage container deposit special fund on June 30 of each year shall lapse to the credit of the state general fund. On July 1 of each year, the director of finance may transfer any excess funds in the deposit beverage container deposit special fund to the state general fund."

SECTION 2. Section 342G-113, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(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[.];

provided that a dealer with or more locations in the State shall have at least one reverse vending machine in operation at each location pursuant to section 342G-115(b).

(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) With fewer than locations in the State; or

[~~(7)~~] (8) 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."

SECTION 3. Section 342G-115, Hawaii Revised Statutes, is amended to read as follows:

"§342G-115 Reverse vending machine requirements. (a) Reverse vending machines may be used by redemption centers to satisfy the requirements of section 342G-113.

(b) A dealer with or more locations in the State shall satisfy the requirements of section 342G-113 by using at least one fully operating reverse vending machine at each location where it engages in the sale of beverages in deposit beverage containers to consumers for off-premises consumption in the State.

(c) 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 then the reverse vending machine shall reject the container. 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.

(d) The department shall purchase and maintain reverse vending machines to assist dealers with meeting the requirements of subsection (b) with moneys in the reverse vending machine endowment subaccount pursuant to section 342G-104(c)."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1410
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII