SB3105

Report Title:

Deposit Beverage Container Program

Description:

Extends reverse vending machine rebate program to persons who are not dealers or recyclers. Extends back the time in which reverse vending machine qualifies for a rebate to January 1, 2005. Extends sunset date of Act 228, SLH 2005 to June 30, 2010.

THE SENATE	S.B. NO.	3105
TWENTY-THIRD LEGISLATURE, 2006
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO DEPOSIT BEVERAGE CONTAINER PROGRAM.

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

SECTION 1. Section 342G-102.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§342G-102.5[]] Reverse vending machine rebate program; standards. (a) The department shall provide a rebate, not to exceed $3,000,000 in the aggregate in any fiscal year, of the cost of purchasing a reverse vending machine, including shipping and general excise tax, purchased by a dealer:

(1) That is a certified redemption center and that agrees to maintain operations as a certified redemption center for a minimum period of two years; or

(2) That is serviced by a recycler that is a certified redemption center; provided that the dealer has entered into a service agreement with the recycler for a minimum period of two years.

(b) The rebate provided under this section shall be granted for reverse vending machines that:

(1) Are installed and operational by December 31, 2005;

(2) Are located on the dealer's premises;

(3) Are accessible to the general public; and

(4) Tender vouchers or receipts for the returned containers that are redeemable by the dealer at a location on the dealer's premises that is accessible to the general public.

(1) $30,000 per retail site over five thousand square feet but less than ten thousand square feet;

(2) $60,000 per retail site over ten thousand square feet but less than seventy-five thousand square feet; or

(3) $90,000 per retail site over seventy-five thousand square feet.

(d) Prior to the purchase of a reverse vending machine, an application for rebate shall be made to the department on forms provided by the department to certify eligibility for a rebate. The application shall contain information determined by the department to be required; provided that at a minimum, the application shall require the applicant to provide the following:

(1) The applicant's name;

(2) The location where each reverse vending machine will be installed and operated;

(3) A projection of the number of customers expected to use each reverse vending machine;

(4) The requested rebate amount;

(5) Proof of certification of the applicant's redemption center or, in the case of a dealer that is serviced by a recycler, the executed service agreement between the recycler and dealer; and

(6) The projected installation date of each reverse vending machine.

(e) The dealer or recycler providing the certified redemption service shall comply with all rules of the department. If any dealer or recycler is found by the department to be not in compliance with the department's rules, the dealer shall reimburse the department for the full amount of the rebate. The department may institute an action pursuant to chapter 91 to recover any rebate paid under this section if the dealer, or the recycler that has a contract with the dealer to service the reverse vending machine, fails to comply with the requirements of this part or any rule adopted pursuant to it.

(f) Amounts received under this section shall not be treated as income for purposes of chapter 235 or gross proceeds or gross income for purposes of chapter 237.

(g) A reverse vending machine shall not be considered a depreciable asset and no person may claim depreciation therefor, at least to the extent that the reverse vending machine has been purchased with rebate funds.

(h) Any dealer participating in the rebate program shall not be eligible to participate in the redemption center and recycling infrastructure improvement program under section 342G-114.5.

(i) The director shall include in the deposit beverage container program annual report to the legislature, a report on the reverse vending machine rebate program.

(j) In addition to those eligible for a rebate under subsections (a) and (b), a rebate shall be available to any person who:

(1) Certifies to the director that the person agrees to maintain operations as a redemption center for a period of at least two years; and

(2) Places a reverse vending machine and a machine that redeems vouchers from the reverse vending machine on the person's business premises in an area accessible to the general public.

The rebate under this subsection shall be for fifty per cent of the actual cost of the reverse vending machine.

A person applying for a rebate before January 1, 2006 need not apply for the rebate prior to obtaining the machine as set forth in subsection (d) but shall certify as to the operations and placement under this subsection. A person applying on or after that date shall apply for the rebate under subsection (d). The director shall adopt any forms necessary to implement this subsection."

SECTION 2. Act 228, Session Laws of Hawaii 2005, is amended by amending section 6 to read as follows:

"SECTION 6. This Act shall take effect upon its approval; provided that:

(1) This Act shall be repealed on [~~June 30, 2006,~~] June 30, 2010, and section 342G-104, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the effective date of this Act; and

(2) Any action initiated by the department of health pursuant to section 342G-A(e), Hawaii Revised Statutes, shall be allowed to continue until final resolution of the action is achieved."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on June 29, 2006.

INTRODUCED BY:	_____________________________