Requires dealers to redeem deposit beverage containers. Allows dealers to expend deposit amounts received from consumers but not redeemed, for operations, equipment, and maintenance costs related to deposit beverage container redemption, to the extent determined to be allowable by the department.

A BILL FOR AN ACT

SECTION 1. Residents complain that Hawaii's bottle recycling centers are inconvenient, scarce, and inaccessible. Redeemers also endure long lines during inconvenient hours. Additionally, consumers who live in apartments or condominiums do not have the space to store empty containers for very long. The legislature finds that many individuals believe that they should be able to return their cans and bottles to the store where they were bought.

The original "bottle bill" included retail stores giving refunds at their stores. However, this was taken out in order to appease store owners. Retail stores do not want to store empty containers because of the tremendous amount of space and labor involved. In Hawaii's tight land market, stores do not want to give up space where they could be selling their products. Recycled containers are also dirty and attract bugs and rodents if stored for too long.

In Hawaii, the law requires that stores send the five-cent deposits plus a non-refundable one-cent handling fee to the State. The State puts this money into the deposit beverage container deposit special fund which is used to contract with recycling companies to set up redemption centers. The public subsequently redeems their bottles and cans for cash at these centers. The legislature believes that the current system is too bureaucratic and cumbersome for consumers.

Therefore, the purposes of this Act are to make recycling more convenient for consumers and help create a cleaner environment by requiring supermarkets to refund recycling deposits.

SECTION 2. 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,] January 1, 2007, every deposit beverage distributor who pays a deposit to the department shall [charge]:

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) Each deposit beverage distributor shall generate and submit to the department a monthly report on:

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) 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).

(e) 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 (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) The amount due from a deposit beverage distributor shall be the net number of deposit beverage containers [sold] redeemed 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.

(h) To the extent determined to be allowable by the department, dealers may expend deposit amounts paid by consumers, but not redeemed, for operations and equipment costs related to deposit beverage container redemption, including but not limited to the purchase of reverse vending machines, the hiring of staff, and the acquisition of storage space for redeemed containers."

Section 3. Section 342G-113, Hawaii Revised Statutes, is amended by amending subsections (a), (b), and (c) to read as follows:

"(a) Except as provided in subsection (b), a dealer shall:

(b) Subsection (a) shall not apply to any dealer:

[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] (c) Dealers who are [not redemption centers] exempt from subsection (a) requirements under subsections (b)(2), (3), and (4) 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."

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

SECTION 5. This Act shall take effect on July 1, 2006.