STAND. COM. REP. NO.1221-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2266

S.D. 1

H.D. 2

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 2266, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RECYCLING,"

begs leave to report as follows:

The purpose of this bill is to promote recycling by:

(1) Increasing participation and recycling rates for specified deposit beverage containers;

(2) Providing a connection between manufacturing decisions and recycling program management; and

(3) Reducing litter.

Specifically, this measure establishes a deposit beverage container program that, among other things:

(1) Imposes a two-cent deposit beverage container fee on beverage container manufacturers or importers;

(2) Requires a five-cent deposit beverage container refund fee for specified glass, plastic, and metal beverage containers of 64 ounces or less; except those sold for on-premise consumption;

(3) Pays a certified redemption center a handling fee of not less than 2 cents for each deposit beverage container redeemed by a consumer and transported out-of-state or received by an in-state recycling company;

(4) Establishes redemption centers to accept empty deposit beverage containers intended to be recycled;

(5) Authorizes for reverse vending machines that accept one or more types of empty deposit beverage containers and issue a redeemable credit slip; and

(6) Establishes a special fund into which will be deposited deposit beverage container fees and deposit beverage container deposits to be used to reimburse refund values and pay handling fees to redemption centers, among other specified uses.

The Department of Health (DOH), Office of Environmental Quality Control, Environmental Center of the University of Hawaii, Office of the Mayor of Kauai, County of Hawaii, Department of Environmental Services of the City and County of Honolulu, a council member of the County of Kauai, Koolau News, Life of the Land, Hawaii's Thousand Friends, Sierra Club, Pacific Action Alliance, Recycle Hawaii, and numerous individuals supported this measure.

The Tax Foundation of Hawaii commented on this measure. The Grocery Manufacturers of America, Coca-Cola Bottling Company of Hawaii, Pacific Allied Products, Ltd., Anheuser Busch Companies, Hawaii Citizens for Comprehensive Recycling, Pepsi-Cola Bottling Company of Hawaii, and Hawaii Food Industry Association opposed this measure.

Your Committee has amended this measure by:

(1) Correcting a technical error by changing the title back to its original form: "RELATING TO RECYCLING";

(2) Clarifying that the name of the recycling program established in this bill is the Deposit Beverage Container Program (Recycling Program);

(3) Changing:

(A) The deposit beverage container fee from 2 cents to 1 cent;

(B) The refund fee from 5 cents to 4 cents; and

(C) The handling fee from 2 cents to 1 cent;

(4) Extending the period during which the deposit beverage container fee cannot be increased from five years to seven years;

(5) Changing the reporting period to 30 days after the month of record;

(6) Requiring the reports to DOH to include the size and type of the beverage container and the amount of deposit fees and refund value by size and type of container;

(7) Requiring beverage distributors to charge dealers and consumers the deposit beverage container fee at the point of sale;

(8) Requiring invoices to include the beverage container fee as a separate line item, and allowing the container fee and refund fee to be combined in the line item;

(9) Extending the radius of the redemption centers to five miles for high and non-high density population areas;

(10) Repealing part VII of chapter 342G, Hawaii Revised Statutes, the advance glass disposal fee law, since its purpose is substantially accomplished by the Recycling Program;

(11) Changing the name of the special fund to the Deposit Beverage Container Program Special Fund;

(12) Repealing the section exempting the Special Fund from the central service expenses charge;

(13) Requiring the Auditor to submit annually to the Legislature a management and financial audit report on the Recycling Program;

(14) Commencing the Recycling Program on January 1, 2005;

(15) Changing the effective date to July 31, 2050; and

(16) Making numerous technical, nonsubstantive amendments for purposes of style, clarity, and consistency.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2266, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2266, S.D. 1, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

 

____________________________

DWIGHT Y. TAKAMINE, Chair