REPORT Title:

Deposit Beverage Container; Penalties

Description:

Increases the volume limit of deposit beverage containers from 64 to 68 fluid ounces. Requires distributors to report container numbers sold and make fee payments on that basis. Specifies redemption center operating hours. Permits calculation of redemption value by container count in certain instances. Allows refusal of refund for previously processed and baled containers. Effective date 7/1/2020. (SB3181 HD2)

THE SENATE

S.B. NO.

3181

TWENTY-THIRD LEGISLATURE, 2006

S.D. 2

STATE OF HAWAII

H.D. 2


 

A BILL FOR AN ACT

 

relating to solid waste.

 

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

SECTION 1. Section 342G-101, Hawaii Revised Statutes, is amended by amending the definition of "deposit beverage container" to read as follows:

""Deposit beverage container" means the individual, separate, sealed glass, polyethylene terephthalte, high density polyethylene, or metal container less than or equal to [sixty-four] sixty-eight fluid ounces, used for containing, at the time of sale to the consumer, a deposit beverage intended for use or consumption in this State."

SECTION 2. Section 342G-105, Hawaii Revised Statutes, is amended to read as follows:

"[[]§342G-105[]] Deposit beverage container inventory report and payment. (a) Beginning October 1, 2002, payment of the deposit beverage container fee and deposits as described in section 342G-110 shall be made monthly based on inventory reports of the deposit beverage distributors. All deposit beverage distributors shall submit to the department documentation in sufficient detail that identifies[:

(1) The number of beverages in deposit beverage containers, by container size and type, manufactured in or imported to the State; and

(2) The number of these deposit beverage containers, by container size and type, exported and intended for consumption out of the State during the reporting period.] the net number of deposit beverage containers

sold, by container size and type.

(b) The amount due from deposit beverage distributors shall be the net number of deposit beverage containers [imported or manufactured into the State (the total number of containers imported or manufactured less the total number of containers exported for consumption outside the State)] sold multiplied by the sum of the prevailing deposit beverage container fee and the refund value of 5 cents. Payment shall be made by check or money order payable to the "Department of Health, State of Hawaii". All inventory reports and payments shall be made no later than the fifteenth day of the month following the end of the payment period of the previous month."

SECTION 3. Section 342G-111, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

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

(1) The number of deposit beverage containers, by container size and type, manufactured in or imported into the State; and

(2) The number of deposit beverage containers, by container size and type, exported and intended for consumption out of the State during the reporting period.] the net number of deposit beverage containers

sold, by container size and type. 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."

SECTION 4. Section 342G-112, Hawaii Revised Statutes, is amended to read as follows:

"§342G-112 Deposit beverage container requirements. (a) Except as provided in subsection (b), every deposit beverage container sold in the State shall clearly indicate the refund value of the container and the word "Hawaii" or the letters "HI". The names or letters representing the names of other states with comparable deposit legislation may also be included in the indication of refund value. The refund value on every deposit beverage container shall be clearly, prominently, and indelibly marked by painting, printing, scratch embossing, raised letter embossing, or securely affixed stickers and shall be affixed on the top or side of the container in letters at least one-eighth inch in size.

(b) Subsection (a) does not apply to any type of refillable glass deposit beverage container [which] that has a brand name permanently marked on it and [which] that has the equivalent of a refund value of at least 5 cents, which is paid upon receipt of the container by a dealer or deposit beverage distributor.

(c) All deposit beverage containers that do not indicate the Hawaii refund value by January 1, 2005, and are intended for sale shall be sold with stickers as specified in subsection (d).

(d) Stickers that indicate the Hawaii refund value may be purchased from the department from November 1, 2004, to December 31, 2004. Surplus stickers may be redeemed at the department by March 1, 2005. The cost of a sticker shall be equal to the Hawaii refund value.

(e) Containers that do not meet the definition of a deposit beverage container, as specified in section 342G-101, shall not indicate the Hawaii refund value."

SECTION 5. Section 342G-113, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

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

(1) Operate [a] each redemption center [by July 1, 2005, and shall accept] for a minimum of thirty hours per week. Business hours shall include at least five hours per week during Saturday or Sunday, unless otherwise determined by the department by rule;

(2) Accept all types of empty deposit beverage containers with a Hawaii refund value;

[(2)] (3) Pay to the redeemer the full refund value for all deposit beverage containers that bear a valid Hawaii refund value; and

[(3)] (4) Ensure each deposit beverage container collected is recycled, and forward documentation necessary to support claims for payment as stated in section 342G-119 or rules adopted under this part.

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

(1) Who is located in a [high density] high-density population area, as defined by the director in rules, [and] within two miles of a certified redemption center that is operated independently of a dealer[;] and is open for business for a minimum of thirty hours per week as specified in subsection (a)(1);

(2) Who is located in a rural area as defined by rule;

(3) Who subcontracts with a certified redemption center to be operated on the dealer's premises;

(4) Whose sales of deposit beverage containers are only via vending machines;

(5) Whose place of business is less than five thousand square feet of interior space;

(6) Who can demonstrate physical or financial hardship, or both, based on specific criteria established by rule; or

(7) Who meets other criteria established by the director.

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."

SECTION 6. Section 342G-114, Hawaii Revised Statutes, is amended to read as follows:

"§342G-114 Redemption centers. (a) Prior to operation, redemption centers shall be certified by the department.

(b) Applications for certification as a redemption center shall be filed with the department on forms prescribed by the department.

(c) The department, at any time, may review the certification of a redemption center. After written notice to the person responsible for the establishment and operation of the redemption center and to the dealers served by the redemption center, the department, after it has afforded the redemption center operator a hearing in accordance with chapter 91, may withdraw the certification of the center if it finds that there has not been compliance with applicable laws, rules, permit conditions, or certification requirements.

(d) Redemption centers shall:

(1) Accept all types of empty deposit beverage containers for which a deposit has been paid;

(2) Verify that all containers to be redeemed bear a valid Hawaii refund value;

(3) Pay to the redeemer the full refund value in either cash or a redeemable voucher for all deposit beverage containers, except as provided in section 342G-116;

(4) Ensure each deposit beverage container collected is recycled through a contractual agreement with an out-of-state recycler or an in-state recycling facility permitted by the department; provided that this paragraph shall not apply if the redemption center is operated by a recycler permitted by the department; and

(5) Forward the documentation necessary to support claims for payment as stated in section 342G-119.

(e) Redemption centers' redemption areas shall be maintained in full compliance with applicable laws and with the orders and rules of the department, including permitting requirements, if deemed necessary, under chapter 342H.

(f) The department shall develop procedures to facilitate the exchange of information between deposit beverage container manufacturers, distributors, and retailers and certified redemption centers, including but not limited to universal product code information for reverse vending machine purposes. The procedures developed by the department shall allow for a reasonable time period between the introduction of a new deposit beverage product and the deadline for submitting universal product code information to certified redemption centers operating reverse vending machines.

(g) Consumers may request that the refund value be computed by container count for loads of two hundred containers or less."

SECTION 7. Section 342G-116, Hawaii Revised Statutes, is amended to read as follows:

"§342G-116 Refusal of refund value payment for a deposit beverage container. Redemption centers shall refuse to pay the refund value on any broken, corroded, or dismembered deposit beverage container, or any deposit beverage container that:

(1) Contains a free-flowing liquid;

(2) Does not properly indicate a refund value; [or]

(3) Contains a significant amount of foreign material[.]; or

(4) Exhibits characteristics of having been previously processed and baled."

SECTION 8. Section 342G-117, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) The department shall pay to each certified redemption center a handling fee of not less than the prevailing deposit beverage container fee for each deposit beverage container redeemed by a consumer that is:

(1) Transported out-of-state;

(2) Received by an approved in-state company for an approved end use for recycling; or

(3) Received by a department-permitted recycling facility[.];

provided that the deposit beverage container is physically received by the redemption center."

2. By amending subsection (c) to read:

"(c) The handling fee shall be paid in addition to the refund value of each empty deposit beverage container. Payments for handling fees shall be based on redemption center reports submitted to the department; provided that there is no discrepancy in the reports. The department may choose to pay the handling fee and refund value on the basis of the total weight of the containers received by material type and the average weight of each container type[.]; provided that the deposit beverage container is physically received by the redemption center."

SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect on July 1, 2020.