Establishes a computer recycling program and an income tax credit for participating in the program.

A BILL FOR AN ACT

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

"PART . COMPUTER RECYCLING

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

"Computer" means any device that performs logical, arithmetic, and memory functions by the manipulation of electronic or magnetic impulses and includes all input, output, processing, storage, software, or communication facilities that are connected or related to the device in a computer system or computer network.

"Computer equipment" means central processing units, microprocessors, data storage and other computer memory devices, and computer terminals or similar devices.

"Computer importer" means any person who is engaged in the manufacture of computers within the State or who imports computers from outside the State for sale or use within the State. The term includes federal agencies and military distributors, but does not include airlines and shipping companies that merely transport computers.

"Computer incentive" means an incentive paid to licensed recyclers for recycling computers. The incentives may be structured to include the costs of collection and processing, and a "buy back" program to increase participation by the public and private haulers.

"Computer recovery program" means a program for computer recovery and reuse.

"Import" means to buy, bring, or accept delivery of computers from an address, supplier, or any entity outside of the State.

§342G- Advance disposal fee. (a) Every computer importer shall pay to the department an advance disposal fee. The fee shall be imposed only once on the same computer. For the period of ________ to _________, the fee shall be ______ per computer. Thereafter, the fee shall be set by the legislature at a rate the legislature determines will permit funding of county computer recycling programs as required to achieve the following computer recovery goals:

(b) In January _____, the department, with assistance from the county solid waste divisions, shall evaluate the amount of computers recovered during the first fifteen months of the program and recommend to the legislature any modification in the fee structure to meet the county computer recovery program funding requirements. Thereafter, prior to the convening of the legislative session in each subsequent even-numbered year, the department of health, in coordination with the counties, shall report to the legislature on the effectiveness of the program and make appropriate recommendations for modification of the fee.

(c) The legislature shall have exclusive authority over all matters subject to this part.

No county shall impose or collect any assessment or fee on computers for the same or similar purpose that is the subject of this part.

§342G- Computer importers; registration, recordkeeping requirements. (a) By ______________, all computer importers operating within the State shall register with the department, using forms prescribed by the department, and shall notify the department of any changes in address. After __________, any person who plans to conduct business in this State as a computer importer shall register with the department no later than one month prior to the commencement of the business.

(b) All computer importers shall maintain records reflecting the manufacture, importation, or exportation of their computers. The records shall be made available, upon request, for inspection by the department; provided that any proprietary information obtained by the department shall be kept confidential and shall not be disclosed to any other person except:

§342G- Deposit into environmental management special fund; distribution to counties. (a) Revenues generated from the advance disposal fee shall be deposited into a special account in the environmental management fund. Moneys from the special account shall be used to fund county computer recovery programs established in accordance with the requirements of section 342G- ; provided that no moneys shall be made available to a county unless the county has first submitted its formally adopted integrated solid waste management plan to the department for review. In the event of any surplus in the special account, the department shall recommend a reduction in the fee as deemed necessary.

(b) The department shall distribute the moneys contained in the special account to the counties in proportion to the amount of computers imported into each county based on the county's de facto population. The distribution shall be in the form of direct contracts with the department as permitted under chapters 103 and 103D or transfer of funds from the department.

(c) No more than ____ per cent, in the aggregate, of the revenue collected in any one year may be used by the department for administrative and educational purposes and to promote computer recovery, recycling, and reuse in Hawaii through research and demonstration projects.

§342G- Computer inventory report and payment. (a) Payment of the advance computer disposal fee shall be made quarterly based on inventory reports of the computer importers, except for those importers subject to subsection (c) or (d). All computer importers shall submit to the department documentation in sufficient detail that identifies the number of computers manufactured or imported to the State and sold or distributed, by manufacturer or distributor, during the calendar year.

(b) The amount due from computer importers less computers exported for the calendar year shall be the sum equal to the number of computers provided in subsection (a) multiplied by the advance disposal fee of ____. Payments shall be made by check or money order payable to the "Department of Health, State of Hawaii". All subsequent inventory reports and payments shall be made no later than the fifteenth day of the month following the end of the previous calendar quarter, except for those importers subject to subsection (d).

(c) A computer importer who imports fewer than ______ computers within a one-year period shall be exempt from payment of the fee.

(d) A computer importer who imports ______ or more computers, but less than or equal to _____ computers, shall be permitted to provide a report and payment of the fee annually, rather than quarterly.

§342G- County computer recovery programs; requirements. (a) All county computer recovery programs shall include some form of computer incentive or "buy back" program to provide a means of encouraging participation by the public or private individuals.

(b) In addition, county programs may include but shall not be limited to:

§342G- Contract for administrative services. The department may contract the services of a third party to administer the advance disposal fee program under this part.

§342G- Penalties. Any person who violates this part, or any rule adopted thereunder, shall be fined not more than $10,000 for each separate offense. Each day of each violation shall constitute a separate offense. Any action taken to impose or collect the penalty provided for in this section shall be considered an administrative action.

§3452G- Enforcement. The department of health shall enforce this part."

SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235- Computer recycling income tax credit. (a) Each individual taxpayer who files an individual net income tax return for a taxable year, may claim a tax credit under this section for Hawaii state individual income tax purposes; provided that the taxpayer has participated in a county computer recovery program pursuant to section 342G- .

(b) The amount of the tax credit shall be $ for each computer donated to the county computer recovery program but no more than $ in any one taxable year.

(c) The tax credit claimed by a resident taxpayer pursuant to this section shall be deductible from the resident taxpayer's individual income tax liability, if any, for the tax year in which the credit is properly claimed.

(d) If the tax credit claimed by the taxpayer under this section exceeds the amount of the income tax payments due from the taxpayer, the excess of credit over payments due shall be refunded to the taxpayer; provided that:

(e) The director of taxation shall prepare forms as may be necessary to claim a credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91.

(f) Claims for the tax credit under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the taxable year for which the credit may be claimed."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2001; provided that section 2 of this Act, upon its approval, shall apply to taxable years beginning after December 31, 2000.