HB2886

SECTION 1. Section 342G-104, Hawaii Revised Statutes, is amended to read as follows:

"§342G-104 Deposit into deposit beverage container deposit special fund; use of funds. (a) There is established in the state treasury the deposit beverage container deposit special fund, into which shall be deposited:

(1) All revenues generated from the deposit beverage container fee as described under sections 342G-102 and 342G-105;

(2) All revenues generated from the deposit beverage container deposit as described under sections 342G-105 and 342G-110; and

(3) All accrued interest from the fund.

(b) Moneys in the deposit beverage container deposit special fund shall be used to reimburse refund values, pay handling fees to redemption centers, fund the reverse vending machine rebate program under section 342G-102.5, and fund the redemption center and recycling infrastructure improvement program established pursuant to section 342G-114.5. The department may also use the money to:

(1) Fund administrative, audit, and compliance activities associated with collection and payment of the deposits and handling fees of the deposit beverage container program;

(2) Conduct recycling education and demonstration projects;

(3) Promote recyclable market development activities;

(4) Support the handling and transportation of the deposit beverage containers to end-markets;

(5) Hire personnel to oversee the implementation of the deposit beverage container program, including permitting and enforcement activities; and

(6) Fund associated office expenses.

(c) Any funds that accumulate in the deposit beverage container deposit special fund shall be retained in the fund unless determined by the auditor to be in excess, after adjustments to the deposit beverage fee, pursuant to the management and financial audits conducted in accordance with section 342G-107.

(d) One-half of any funds in the deposit beverage container deposit special fund determined by the auditor to be in excess pursuant to subsection (c) shall be used to provide grants-in-aid to the several counties to facilitate deposit beverage container redemption and recycling programs in the counties; provided that excess funds appropriated in this manner shall be allocated as follows:

(1) per cent to the city and county of Honolulu;

(2) per cent to Hawaii county;

(3) per cent to Maui county; and

(4) per cent to Kauai county.

(e) The department shall adopt rules pursuant to chapter 91 for providing grants-in-aid to implement this subsection."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2886
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII