SB3099 SD1

SECTION 1. The legislature finds that plastic scrap is highly problematic; it has low economic value, is difficult to recycle, and does not easily break down in the environment. For over a decade, China has been importing the majority of the United States' plastic scrap; however, in July of 2017, China announced that it will effectively ban imports on twenty-four types of scrap. This has disrupted the global recycling market and necessitates that Hawaii continue to innovate and improve to find local alternatives to plastics recycling in this changing market.

The legislature further finds that the current redemption rate of the deposit beverage container program is 67 per cent, down from 78.7 per cent in 2009. The all-time lowest redemption rate since the program's inception occurred in 2016 at 66.9 per cent. Efforts need to be made to increase the redemption rate and ensure that less plastic is being deposited in landfills and the ocean.

The purpose of this Act is to:

(1) Establish a plastics recycling grant program to identify Hawaii-based alternatives for the sustainable recycling and reuse of plastic commodities;

(2) Require the department of health to set benchmarks to reach an eighty-five per cent redemption rate by 2023;

(3) Increase the refund value for deposit beverage containers from 5 cents to 10 cents, contingent upon a finding by the department of health that the redemption rate for deposit beverage containers remained below eighty per cent for two consecutive calendar years;

(4) Require the department of health to annually report to the legislature on redemption rates, progress, and plans regarding the deposit beverage container program; and

(5) Appropriate funds to establish two positions for the glass advance disposal fee program.

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

"§342G- Plastics recycling grant program. There is established within the department the plastics recycling grant program to provide grants to identify Hawaii-based alternatives for the sustainable recycling and reuse of plastic commodities within the State. The department shall adopt rules pursuant to chapter 91 necessary to effectuate the purposes of this section."

SECTION 3. Chapter 342G, Hawaii Revised Statutes, is amended by adding two new sections to part VIII to be appropriately designated and to read as follows:

"§342G- Redemption benchmarks. No later than January 1, 2019, the department shall establish benchmarks to reach a redemption rate of eighty-five per cent by January 1, 2023.

§342G- Reporting requirements. The department shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of each regular session detailing redemption rates, progress, and plans regarding the deposit beverage container program."

SECTION 4. Section 342G-105, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The amount due from deposit beverage distributors shall be the net number of deposit beverage containers sold, donated, or transferred multiplied by the sum of the prevailing deposit beverage container fee and the refund value [~~of 5 cents.~~] as provided by section 342G-110. 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 5. Section 342G-110, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) By January 1, 2005, every deposit beverage container sold in this State shall have a refund value of 5 cents[.]; provided that the refund value shall be 10 cents beginning on the later of:

(1) Eight months after the department determines that in each of the two previous calendar years, the number of beverage containers returned for the refund value specified in this section was less than eighty per cent of the total number of beverage containers that were sold in this State; or

(2) January 1 of the calendar year following the determination by the department described in paragraph (1).

The department shall not make a determination under this subsection prior to January 1, 2020. The department may adopt rules pursuant to chapter 91 necessary to carry out the purposes of this section, including implementing an increase in refund value over time. Each container shall have the refund value clearly indicated on it as provided in section 342G-112."

SECTION 6. Section 342G-111, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

"(f) The amount due from a deposit beverage distributor shall be the net number of deposit beverage containers sold multiplied by the sum of the prevailing deposit beverage container fee and the deposit value [~~of 5 cents.~~] determined pursuant to section 342-110. Payment shall be made by check or money order payable to the "Department of Health, State of Hawaii". All reports and payments shall be made no later than the fifteenth day of the month following the end of the previous payment period."

SECTION 7. There is established one full-time equivalent (1.0 FTE) environmental health specialist IV position and one full-time equivalent (1.0 FTE) planner IV position for the glass advance disposal fee program within the department of health.

SECTION 8. There is appropriated out of the general revenues of the State of Hawaii the sum of $169,466 or so much thereof as may be necessary for fiscal year 2018-2019 for two full-time equivalent (2.0 FTE) positions for the glass advance disposal fee program, which shall be allocated as follows:

(1) $84,733 for one full-time equivalent (1.0 FTE) environmental health specialist IV position; and

(2) $84,733 for one full-time equivalent (1.0 FTE) planner IV position.

The sum appropriated shall be expended by the department of health for the purposes of this Act.

SECTION 9. There is appropriated out of the general revenues of the State of Hawaii the sum of $3,000,000 or so much thereof as may be necessary for fiscal year 2018-2019 for the plastics recycling grant program.

The sum appropriated shall be expended by the department of health for the purposes of this Act.

SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 11. This Act shall take effect on July 1, 2018.

Report Title:

Deposit Beverage Container Program; Benchmarks; Plastics Recycling Grant Program; Glass Advance Disposal Fee Program; Reporting Requirements; Positions; Automatic Fee Increase; Appropriation

Description:

Requires the department of health to set benchmarks to reach an eighty-five per cent redemption rate by 2023. Establishes and appropriates funds for a plastics recycling grant program to identify Hawaii-based alternatives for the sustainable recycling and reuse of plastic commodities. Automatically increases the glass advance disposal fee from 5 cents to 10 cents if the redemption rate remains below eighty per cent for two consecutive calendar years. Requires the department of health to annually report to the legislature on redemption rates, progress, and plans regarding the deposit beverage container program. Appropriates funds to establish two positions for the glass advance disposal fee program. (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

THE SENATE	S.B. NO.	3099
TWENTY-NINTH LEGISLATURE, 2018		S.D. 1
STATE OF HAWAII