SB2559 HD1.DOC

SECTION 1. The legislature finds that single-use plastic and paper checkout bags present a hazard to the environment. Single-use checkout bags are not only a source of unsightly litter, they are a significant source of environmental degradation that crowds landfills with non-biodegradable waste, pollutes the oceans, endangers marine life, requires fossil fuels to manufacture, and in the case of paper bags, contributes to deforestation.

Around the world, plastic pollution contributes to clogged waterways and damaged marine ecosystems and eventually finds its way into the oceans through storm drains and watersheds. Polyethylene, or polythene, is the most widely used plastic, with an annual production of approximately eighty million metric tons. Polyethylene is primarily used for packaging materials and is the most common material for plastic shopping bags. Commercial polyethylene is not considered to be biodegradable, and most commercial polyethylene waste ends up in landfills or the oceans. Once in the ocean, polyethylene plastic products float on the surface where, over time, sunlight and wave action cause them to break into smaller particles, but they never disappear entirely. Plastic bags and other plastic pollution pose a particular hazard for Hawaii's environment and marine wildlife. The "Great Pacific Garbage Patch", a giant concentration of floating marine debris twice the size of Texas, moves seasonally with the currents in the north Pacific Ocean and frequently deposits plastic bags and other debris on the Northwest Pacific Islands and on the main islands of Hawaii.

The legislature further finds that the State has a compelling interest in protecting its precious natural environment by decreasing the amount of waste that flows into its landfills. This Act follows the lead of several cities and counties in the United States and several foreign countries that have adopted laws that discourage the use of non-biodegradable plastic and non-recyclable paper checkout bags. Because Hawaii's economy, culture, and the livelihood of its people depend heavily on preserving its natural environment, the legislature finds that the State will benefit by encouraging the use of reusable shopping bags.

The purpose of this Act is to reduce the State's production of waste and the negative impact on the environment by establishing a disposable checkout bag offset fee. The Act, however, does not apply to all businesses or prohibit all plastic bag distribution.

SECTION 2. Chapter 342H, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . disposable checkout bag OFFSET fee

§342H-A Definitions. As used in this part, unless the context otherwise requires:

"Business" means any commercial enterprise or establishment, including sole proprietorships, joint ventures, partnerships, and corporations, or any other legally cognizable entity, and includes all employees of the business or any independent contractors associated with the business.

"Disposable checkout bag":

(1) Means a bag made of paper or plastic, other than plastic greater than 2.25 millimeters thick, whether recyclable or non-recyclable, that is provided by a business to a customer, and is designed for one-time use to transport merchandise; and

(2) Does not include:

(A) Bags used by customers inside a business to package bulk items such as fruits, vegetables, nuts, grains, candies, or small hardware items;

(B) Bags used to contain or wrap frozen foods, meat or fish, flowers or potted plants, or other items to contain dampness;

(D) Bags provided by pharmacists to contain prescription medications;

(E) Newspaper bags;

(F) Door hanger bags;

(G) Laundry or dry cleaning bags, including bags provided by hotels to guests to contain wet or dirty clothing;

(H) Bags sold in packages containing multiple bags intended for use as garbage, pet waste, or yard waste bags; or

(I) Bags used to contain live animals, such as fish or insects sold in pet stores.

"Reusable bag" means a bag with handles that is specifically designed and manufactured for multiple reuse and is:

(1) Made of cloth or other machine washable fabric; or

(2) Made of other durable material suitable for re-use, including plastic that is at least 2.25 millimeters thick.

§342H-B Distribution of disposable checkout bags; offset fee. (a) Beginning January 1, 2011, all businesses in the State shall charge and collect an offset fee of five cents for each disposable checkout bag that is provided to customers.

(b) Businesses subject to the requirements of this part shall indicate on each customer transaction receipt the number of disposable checkout bags provided and the amount of the offset fee charged.

§342H-C Remittance of offset fees. (a) Not later than the fifteenth day of each month, each business subject to the requirements of this part shall remit to the department an amount equal to sixty per cent of the offset fees collected pursuant to section 342H-B during the previous month; provided that the portion of offset fees retained by a business shall be considered taxable revenue. Payments and receipts shall be reported on forms prescribed by the director and containing information as deemed necessary for the proper administration of this part.

(b) Businesses shall be subject to penalties and interest for late or underpaid offset fees.

§342H-D Violations. It shall be a violation of this part for any business that is subject to the requirements of this part to pay or otherwise reimburse a customer for any portion of the offset fee.

Violations of this part or any rule adopted pursuant to this part shall be subject to a fine of not less than $1,000 for each violation.

§342H-E Preemption. The provisions of this part shall preempt the powers of any county to regulate the use of disposable checkout bags.

§342H-F Rules. The director shall adopt rules, pursuant to chapter 91, as may be necessary for the purposes of this part."

SECTION 3. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 4. This Act shall take effect on July 1, 2010.

THE SENATE	S.B. NO.	2559
TWENTY-FIFTH LEGISLATURE, 2010		S.D. 2
STATE OF HAWAII		H.D. 1