HB2826

PART I

SECTION 1. The legislature finds that integrated solid waste management in the State will accomplish two important goals by:

(1) Protecting and preserving environmental resources; and

(2) Reducing economic costs to residents and businesses.

With these goals in mind, the legislature created the deposit beverage container program. The legislature finds that the program is currently being implemented in a manner that creates a conflict between these two goals. A higher redemption rate means that more consumers recycle, which helps to protect and preserve environmental resources. However, the higher redemption rate also means that consumers will be charged a higher deposit beverage container fee.

The purpose of this part is to suspend the collection of the deposit beverage container fee.

SECTION 2. Section 342G-102, Hawaii Revised Statutes, is amended to read as follows:

"§342G-102 Deposit beverage container fee. (a) Beginning on October 1, 2002, every deposit beverage distributor shall pay to the department a deposit beverage container fee on each polyethylene terephthalate, high density polyethylene, or metal deposit beverage container manufactured in or imported into the State. The fee shall be imposed only once on the same deposit beverage container. The fee shall be 0.5 cents per deposit beverage container.

(b) Beginning on October 1, 2004, every deposit beverage distributor shall pay to the department a deposit beverage container fee on each deposit beverage container manufactured in or imported into the State. The deposit beverage container fee shall not apply to deposit beverage containers exported for sale outside of the State. The fee shall be imposed only once on the same deposit beverage container. The fee shall be 1 cent per deposit beverage container.

(c) No county shall impose or collect any assessment or fee on deposit beverage containers for the same or similar purpose that is the subject of this chapter.

(d) Beginning January 1, 2005, and every August 1 thereafter, the department shall notify deposit beverage distributors in writing of the amount of the deposit beverage container fee. The effective date of changes to the fee amount shall be September 1. The fee shall be based on the redemption rate calculated annually based on the redemption rate information submitted to the department for the previous period of July 1 through June 30. The fee amount shall be as follows:

(1) If the redemption rate is seventy per cent or less: 1 cent per container; and

(2) If the redemption rate is greater than seventy per cent: 1.5 cents per container.

(e) The director may temporarily suspend an automatic increase of the deposit beverage container fee if, after consultation with the auditor, it is determined that the deposit beverage container deposit special fund contains sufficient funds for the purposes of section 342G-104(b).

(f) Beginning September 1, 2008, collection of the deposit beverage container fee shall be suspended until such time as the legislature determines that it should resume."

PART II

SECTION 3. Notwithstanding any law to the contrary, each county shall prepare and submit a revision of its integrated solid waste management plan that specifically addresses:

(1) Increasing recycling;

(2) Employing new technologies to process solid waste; and

(3) Utilization of solid waste for energy generation.

Each county shall submit a report on its findings and recommendations to the legislature and to the office of solid waste management no later than twenty days prior to the convening of the regular session of 2009.

SECTION 4. There is appropriated out of the deposit beverage container deposit special fund the sum of $800,000 or so much thereof as may be necessary for fiscal year 2008-2009 to the counties for the revision of their integrated solid waste management plans, to be matched by each county.

The appropriation to each county shall be as follows:

(1) City and county of Honolulu $200,000

(2) Hawaii county $200,000

(3) Kauai county $200,000

(4) Maui county $200,000

The sum appropriated shall be expended by the respective counties for the purposes of section 3 of this Act.

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2008.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2826
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII