HB 786: RELATING TO DEPOSIT BEVERAGE CONTAINER RECYCLING.

A BILL FOR AN ACT

RELATING TO DEPOSIT BEVERAGE CONTAINER RECYCLING.

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

     SECTION 1.  Section 342G-104, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Moneys in the deposit beverage container deposit special fund shall be used to reimburse refund values and pay handling fees to redemption centers.  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] Evaluate and promote recyclable market development activities, including but not limited to deploying reverse vending machines in the State;

     (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."

     SECTION 2.  Section 342G-113, Hawaii Revised Statutes, is amended to read as follows:

     "§342G-113  Redemption of empty deposit beverage containers.  (a)  [Except as provided in subsection (b), a] A dealer shall:

     (1)  Operate a redemption center by July 1, 2005, and shall accept all types of empty deposit beverage containers with a Hawaii refund value;

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

     (3)  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 population area as defined by the director in rules, and within [two miles] one-half of a mile of a certified redemption center that is operated independently of a dealer;

     (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; or

     (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].

     (c)  The director may allow the placement of redemption centers at greater than prescribed distances to accommodate geographical features while ensuring adequate consumer convenience.

     [(c)] (d)  Regardless of the square footage of a dealer's place of business, dealers who are not redemption centers shall post a clear and conspicuous sign at the primary public entrance of the dealer's place of business that specifies the name, address, and hours of operation of the closest redemption center locations.

     [(d)  If there is no redemption center within the two-mile radius of a dealer due to the criteria described in subsection (b), then the respective county and the State shall determine the need for a redemption center in that area.  If a redemption center is deemed necessary, then the State, with assistance from the county, shall establish the redemption center with funding from the deposit beverage container deposit special fund.]

     (e)  Regional centers for the redemption of refillable beverage containers may be established in addition to, but not as substitutes for, the means established for the redemption of empty deposit beverage containers prescribed in subsection (a).

     [(e)] (f)  Businesses that sell deposit beverages for on-premises consumption, such as hotels, bars, and restaurants, shall collect used deposit beverage containers from the patron and either use a certified redemption center for the collection of containers or become a certified redemption center."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

Beverage Dealers; Redemption Centers; Refillable Beverage Containers; Regional Centers; Department of Health

Description:

Allows the Department of Health to use money in the Deposit Beverage Container Deposit Special Fund to deploy reverse vending machines.  Repeals certain exemptions for beverage dealers from the requirement to operate redemption centers.  Allows for the establishment of regional centers for the redemption of refillable beverage containers but not as substitutes for dealers' means to receive deposit beverage containers.  Effective 7/1/3000.  (HD1)

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

A BILL FOR AN ACT

relating to deposit beverage container recycling.

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

     SECTION 1.  Section 342G-104, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Moneys in the deposit beverage container deposit special fund shall be used to reimburse refund values and pay handling fees to redemption centers.  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)  Provide grants to deploy reverse vending machines in the State; and

    [(6)] (7)  Fund associated office expenses."

     SECTION 2.  Section 342G-113, Hawaii Revised Statutes, is amended to read as follows:

     "§342G-113  Redemption of empty deposit beverage containers.  (a)  [Except as provided in subsection (b), a] A dealer shall:

     (1)  Operate a redemption center by July 1, 2005, and shall accept all types of empty deposit beverage containers with a Hawaii refund value[;] of the kind, size, and brand sold by the dealer;

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

     (3)  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 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;

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

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

    [(4)] (3)  Whose sales of deposit beverage containers are only via vending machines; or

    [(5)] (4)  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].

     (c)  The director may allow the placement of redemption centers at greater than prescribed distances to accommodate geographical features while ensuring adequate consumer convenience.

     [(c)] (d)  Regardless of the square footage of a dealer's place of business, dealers who are not redemption centers shall post a clear and conspicuous sign at the primary public entrance of the dealer's place of business that specifies the name, address, and hours of operation of the closest redemption center locations.

     [(d)  If there is no redemption center within the two-mile radius of a dealer due to the criteria described in subsection (b), then the respective county and the State shall determine the need for a redemption center in that area.  If a redemption center is deemed necessary, then the State, with assistance from the county, shall establish the redemption center with funding from the deposit beverage container deposit special fund.]

     (e)  Regional centers for the redemption of refillable beverage containers may be established in addition to, but not as substitutes for, the means established for the redemption of empty deposit beverage containers prescribed in subsection (a).

     [(e)] (f)  Businesses that sell deposit beverages for on-premises consumption, such as hotels, bars, and restaurants, shall collect used deposit beverage containers from the patron and either use a certified redemption center for the collection of containers or become a certified redemption center."

     SECTION 3.  (a)  The department of health shall establish a reverse vending machine pilot program to provide grants to deploy reverse vending machines in the State.

     (b)  The department of health shall adopt rules pursuant to chapter 91, Hawaii Revised Statutes, to establish standards for the distribution of grants to deploy reverse vending machines under the reverse vending machine pilot program.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2025.

Report Title:

Beverage Dealers; Redemption Centers; Refillable Beverage Containers; Regional Centers; Reverse Vending Machine Pilot Program; Department of Health

Description:

Repeals certain exemptions for beverage dealers from the requirement to operate redemption centers and amends the types of containers they must accept for redemption.  Allows the establishment of regional centers for the redemption of refillable beverage containers but not as substitutes for dealers' means to receive deposit beverage containers.  Requires the Department of Health to establish a reverse vending machine pilot program to use the Deposit Beverage Container Deposit Special Fund to provide grants to deploy reverse vending machines.

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

STAND. COM. REP. NO.  98

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 786

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 786 entitled:

"A BILL FOR AN ACT RELATING TO DEPOSIT BEVERAGE CONTAINER RECYCLING,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Amend the types of containers beverage dealers must accept for redemption and repeal certain exemptions for beverage dealers from the requirement to operate redemption centers;

     (2)  Allow for the establishment of regional centers for the redemption of refillable beverage containers in addition to existing redemption centers; and

     (3)  Require the Department of Health to establish a Reverse Vending Machine Pilot Program, using the Deposit Beverage Container Deposit Special Fund to provide grants to deploy reverse vending machines.

     Your Committee received testimony in opposition to this measure from Hawaii Food Industry Association.  Your Committee received comments on this measure from the Department of the Attorney General and Department of Health.

     Your Committee finds that the State must ensure that consumers have access to redemption centers to recycle beverage containers.  This measure addresses this need by allowing the Department of Health to use money from the Deposit Beverage Container Deposit Special Fund to deploy reverse vending machines, repealing certain exemptions for beverage dealers from the requirement to operate redemption centers, and allowing for the establishment of regional redemption centers.

     Your Committee has amended this measure by:

     (1)  Clarifying that the Department of Health is not required to use grants to deploy reverse vending machines;

     (2)  Removing the requirements for the types of containers beverage dealers must accept;

     (3)  Reinstating the exemption for beverage dealers in high density population areas and changing the qualifications for the exemption to beverage dealers within one-half of a mile of a redemption center;

     (4)  Reinstating the requirement that a beverage dealer's place of business be less than five thousand square feet of interior space to qualify for the exemption;

     (5)  Removing the requirement for the Department of Health to establish a Reverse Vending Machine Pilot Program;

     (6)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (7)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 786, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 786, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,