SB 724: RELATING TO DEPOSIT BEVERAGE CONTAINER REDEMPTION.

A BILL FOR AN ACT

relating to deposit beverage container redemption.

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

     SECTION 1.  The legislature finds that the state deposit beverage container program is currently underutilized.  According to a 2024 report by the Container Recycling Institute, only fifty-five per cent of eligible containers were redeemed in Hawaiʻi in 2023 – the lowest annual redemption rate since the program was initiated in 2005, and the third worst in the nation among states with container deposit laws. 

     The legislature further finds that a significant contributing factor of declining redemption rates is the scarcity and inaccessibility of bottle redemption centers statewide.  States with substantially higher redemption rates, such as Michigan and Oregon, require retailers who sell deposit beverages to accept the return of empty deposit beverage containers for redemption, making it convenient for consumers to redeem their empty deposit beverage containers. 

     Although Hawaiʻi requires dealers of deposit beverage containers for off-premises consumption to accept and redeem the empty containers, exceptions within the statute make the law ineffective.  Dealers located outside of a high density population area on the island of Oʻahu are not required to redeem the qualifying containers.  Furthermore, even dealers located on Oʻahu are exempt if they are located within two miles of another redemption center, only sell deposit beverage containers via vending machines, or operate a store with less than five thousand square feet of retail space.  The director of health is also authorized to allow the placement of redemption centers outside of the required parameters due to geographical features.  These exemptions have resulted in a scarcity of redemption centers in many areas, disincentivizing residents from redeeming empty deposit beverage containers because of the inconvenience and significant travel often required to do so. 

     The legislature also finds that these exemptions undermine the purpose of container deposit laws and that existing law should contain a uniform provision requiring all dealers of deposit beverage containers to operate as redemption centers.  

     Accordingly, the purpose of this Act is to promote increased bottle redemption by repealing the existing exemptions for certain dealers of deposit beverage containers and requiring every dealer to accept and redeem those containers when they are returned.

     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 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;

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

     (c)  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)] (b)  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, 2026.

Report Title:

Deposit Beverage Container Program; Dealers of Deposit Beverage Containers; Redemption Centers; Exemptions; Repeal

Description:

Repeals the exemptions for certain dealers of deposit beverage containers and related provisions.  Requires all dealers of deposit beverage containers to operate as redemption centers.  Effective 7/1/2026.

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. 181

Honolulu, Hawaii

RE:    S.B. No. 724

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Agriculture and Environment, to which was referred S.B. No. 724 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is, beginning July 1, 2026, to:

     (1)  Repeal the exemptions for certain dealers of deposit beverage containers and related provisions; and

     (2)  Require all dealers of deposit beverage containers to operate as redemption centers.

     Your Committee received testimony in opposition to this measure from the Hawaii Food Industry Association, Reynolds Recycling, and one individual.

     Your Committee received comments on this measure from the Department of Health.

     Your Committee finds that a significant contributing factor of declining beverage container redemption rates in the State is the scarcity and inaccessibility of redemption centers statewide.  Your Committee recognizes that the exemptions in the existing law on the redemption of empty deposit beverage containers have resulted in a scarcity of redemption centers in many areas, which disincentivizes residents from redeeming empty deposit beverage containers because of the inconvenience and significant travel often required to do so.  This measure upholds the purpose of container deposit laws by repealing all exemptions and requiring all dealers of deposit beverage containers to operate as redemption centers.

     As affirmed by the record of votes of the members of your Committee on Agriculture and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 724 and recommends that it pass Second Reading and be referred to your Committee on Commerce and Consumer Protection.

Respectfully submitted on behalf of the members of the Committee on Agriculture and Environment,