REPORT TITLE:
Plastics, Advance Disposal Fee


DESCRIPTION:
Requires an advance disposal fee for plastic importers for
plastic containers and plastic litter items.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO PLASTIC.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Litter is both an aesthetic and a sanitation
 
 2 issue.  It has a negative impact on our critically important
 
 3 visitor industry, and can compromise the health of our residents.
 
 4 One solution that has helped to decrease the amount of glass
 
 5 litter has been the advance disposal fee program that requires
 
 6 glass container importers to pay a fee for every container that
 
 7 they bring into the State.  The fee is deposited into a special
 
 8 fund for use by the counties in their glass recovery programs.
 
 9      Another major component of litter is plastic, both in the
 
10 form of containers and as miscellaneous smaller items, such as
 
11 six-pack rings, plastic bags, and cigarette butts.  The purpose
 
12 of this Act is to place an advance disposal fee on plastics to
 
13 reduce litter and increase recycling.
 
14      SECTION 2.  Chapter 342G, Hawaii Revised Statutes, is
 
15 amended by adding a new part to be appropriately designated and
 
16 to read as follows:
 
17                    "PART   . PLASTIC RECOVERY
 
18      §342G-   Definitions.  As used in this part, unless the
 
19 context requires otherwise:
 

 
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 1      "Plastic litter items" or "litter items" includes items made
 
 2 from plastic that are commonly intended to be disposed of after a
 
 3 single use, including:
 
 4      (1)  Plastics bags;
 
 5      (2)  Plastic six-pack rings;
 
 6      (3)  Plastic-coated cups and plates;
 
 7      (4)  Plastic utensils, including drinking straws;
 
 8      (5)  Foam plates and cups;
 
 9      (6)  Cigarette butts; and
 
10      (7)  Any other similar plastic item as designated by the
 
11           department pursuant to rule adopted under chapter 91.
 
12      "Plastics importer" means any person who is engaged in the
 
13 manufacture of plastic containers or plastic litter items within
 
14 the State or who imports plastic containers or plastic litter
 
15 items from outside the State for sale or use within the State.
 
16 The term includes federal agencies and military distributors but
 
17 does not include airlines and shipping companies that merely
 
18 transport plastic containers and plastic litter items.
 
19      "Plastics incentive" means an incentive paid to licensed
 
20 recyclers for recycling plastic containers and plastic litter
 
21 items.  Such incentives may be structured to include the costs of
 
22 collection and processing, and a "buy back" incentive to increase
 
23 participation by the public and private haulers.
 

 
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 1      "Plastics recovery program" means a program for plastic
 
 2 recovery and reuse.
 
 3      §342G-   Advance disposal fee.(a)  Every plastics
 
 4 importer shall pay to the department an advance disposal fee.
 
 5 The fee shall be imposed only once on the same item, according to
 
 6 the following schedule:
 
 7      (1)  For all plastic containers, two cents per container;
 
 8           and
 
 9      (2)  For all plastic litter items, one-tenth of a cent per
 
10           box, package, or other aggregate unit of the plastic
 
11           litter items.  
 
12 For the purposes of this section, "containers" means bottles,
 
13 jars, and similar items, and does not include cups, bowls,
 
14 plates, or ashtrays.  
 
15      (b)  In January 2004, the department, with assistance from
 
16 the county solid waste divisions, shall evaluate the amount of
 
17 plastic recovered under the program and recommend to the
 
18 legislature any modification in the fee structure to meet county
 
19 plastic recovery program funding requirements.  If the program is
 
20 continued by the legislature, thereafter, prior to the convening
 
21 of the legislative session in each subsequent even-numbered year,
 
22 the department of health, in coordination with the counties,
 
23 shall report to the legislature on the effectiveness of the
 

 
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 1 program and make appropriate recommendations for modification of
 
 2 the fee.
 
 3      (c)  The legislature shall have exclusive authority over all
 
 4 matters subject to this chapter.
 
 5      (d)  No county shall impose or collect any assessment or fee
 
 6 on plastic containers or plastic litter items for the same or
 
 7 similar purpose that is the subject of this chapter.
 
 8      §342G-   Plastics importers; registration, recordkeeping
 
 9 requirements.  (a)  By September 1, 2000, all plastics importers
 
10 operating within the State shall register with the department,
 
11 using forms prescribed by the department, and shall notify the
 
12 department of any change in address.  After September 1, 2000,
 
13 any person who desires to conduct business in this State as a
 
14 plastics importer shall register with the department no later
 
15 than one month prior to the commencement of the business.
 
16      (b)  All plastics importers registered with the department
 
17 shall maintain records reflecting the manufacture of their
 
18 plastic containers and litter items as well as the importation
 
19 and exportation of products packaged in plastic.  The records
 
20 shall be made available, upon request, for inspection by the
 
21 department; provided that any proprietary information obtained by
 
22 the department shall be kept confidential, and shall not be
 
23 disclosed to any other person except:
 

 
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 1      (1)  As may be reasonably required in an administrative or
 
 2           judicial proceeding to enforce any provision of this
 
 3           chapter or any rule adopted pursuant to this chapter;
 
 4           or
 
 5      (2)  Under an order issued by a court or administrative
 
 6           agency hearing officer.
 
 7      §342G-   Deposit into environmental management special
 
 8 fund; distribution to counties.(a)  Revenues generated from the
 
 9 advance disposal fee shall be deposited into a special account in
 
10 the environmental management fund.  Moneys from the special
 
11 account shall be used to fund county plastic recovery programs
 
12 established in accordance with the requirements of this part;
 
13 provided that no moneys shall be made available to a county
 
14 unless the county has first submitted its formally adopted
 
15 integrated solid waste management plan to the department for
 
16 review.  In the event of any surplus in the special account, the
 
17 department shall recommend a reduction in the fee as deemed
 
18 necessary.
 
19      (b)  The department shall distribute the moneys contained in
 
20 the special account to the counties in proportion to the amount
 
21 of plastic imported into each county based on the county's de
 
22 facto population.  The distribution shall be in the form of
 
23 direct contracts with the department as permitted under chapters
 

 
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 1 103 and 103D.
 
 2      (c)  No more than ten per cent, in the aggregate, of the
 
 3 revenue collected in any one year may be used by the department
 
 4 for administrative and educational purposes and to promote
 
 5 plastic recovery, recycling, and reuse in Hawaii through research
 
 6 and demonstration projects.
 
 7      §342G-   Inventory report and payment.  (a)  Payment of
 
 8 the advance plastic disposal fee shall be made quarterly based on
 
 9 inventory reports of the plastics importers.  For the first
 
10 payment, all plastics importers, on or before January 15, 2001,
 
11 shall submit to the department documentation in sufficient detail
 
12 that identifies the number of plastic containers or litter items
 
13 manufactured or imported to the State and sold or distributed, by
 
14 manufacturer or distributor, during the calendar quarter ending
 
15 December 31, 2000.
 
16      (b)  The amount due from plastics importers less plastic
 
17 containers or litter items exported for the calendar quarter
 
18 ending December 31, 2000, shall be the sum equal to the number of
 
19 plastic containers or litter items provided in subsection (a)
 
20 multiplied by the applicable advance disposal fee.  Payment shall
 
21 be made by check or money order payable to the "Department of
 
22 Health, State of Hawaii".  All subsequent inventory reports and
 
23 payments shall be made not later than the fifteenth day of the
 

 
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 1 month following the end of the previous calendar quarter.
 
 2      §342G-   County plastic recovery programs; requirements.
 
 3 (a)  All county plastic recovery programs shall include some form
 
 4 of plastic incentive or "buy back" program providing a means of
 
 5 encouraging participation by the public or private collectors.
 
 6      (b)  In addition, county programs may include but shall not
 
 7 be limited to:
 
 8      (1)  Funding collection and processing of plastic containers
 
 9           and litter items either through existing county
 
10           agencies or through external contracts for services;
 
11      (2)  Subsidizing the transportation of raw or processed
 
12           material to off-island markets;
 
13      (3)  Development of collection facilities or the provision
 
14           of containers for plastic recycling, or the incremental
 
15           portions of multi-material programs;
 
16      (4)  Additional research and development programs, including
 
17           grants to private sector entrepreneurs, especially
 
18           those activities developing higher value uses for the
 
19           material; and
 
20      (5)  Public education and awareness programs focusing on
 
21           plastic recovery, or the incremental portions of multi-
 
22           material programs. 
 
23      §342G-   Contract for administrative services.  The
 

 
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 1 department may contract the services of a third party to
 
 2 administer the advance disposal fee program under this part.
 
 3      §342G-   Penalties.  Any person who violates any provision
 
 4 of this part, or any rule adopted thereunder, shall be fined not
 
 5 more than $10,000 for each separate offense.  Each day of each
 
 6 violation shall constitute a separate offense.  Any action taken
 
 7 to impose or collect the penalty provided for in this section
 
 8 shall be considered a civil action.
 
 9      §342G-   Enforcement.  The department of health shall
 
10 enforce this part."
 
11      SECTION 3.  This Act shall take effect upon its approval.