Hawaii-2013-HB356-Introduced

SECTION 1. The purpose of this Act is to reduce the adverse impact of single-use checkout bag waste on Hawaii's natural environment by establishing an offset fee for the distribution of single-use checkout bags and directing use of the fee revenues to fund programs to mitigate the damaging effects of single-use checkout bags.

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

"Part . Single-use checkout bag 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, whether for profit or not for profit, and includes all employees of the business; provided that food donation organizations shall not be considered a business for purposes of this part.

"Mil" means one thousandth of one inch.

"Proprietary information" means business information covered by any of the exceptions to public disclosure under chapter 92F.

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

(1) Cloth or other machine-washable fabric; or

(2) Durable material suitable for reuse, including plastic that is at least 2.25 mils thick.

"Single-use checkout bag":

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

(2) Does not include:

(A) Bags used by customers inside a business to package loose items, such as fruits, vegetables, nuts, grains, or 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 for home newspaper delivery;

(F) Door-hanger bags;

(G) Laundry, dry cleaning, or garment 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;

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

(J) Bags used to transport chemical pesticides, drain-cleaning chemicals, or other caustic chemicals sold at the retail level; provided that this exemption shall be limited to one bag per customer.

"Small business" means a business that grossed $500,000 or less in revenues in the previous year.

§342H-B Distribution of single-use checkout bags; fee. (a) Beginning January 1, 2014, all businesses in the State shall charge and collect a fee of 10 cents for each single-use 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 single-use checkout bags provided and the amount of the fee charged.

(d) Of the fees collected pursuant to subsection (a), a business may retain up to ten per cent from January 1, 2014, until December 31, 2014, to reimburse the business for the costs of implementing this section; provided that all fees retained shall be subject to chapters 235 and 237; provided further that any taxes imposed on the fees retained shall not be charged to any consumer.

(e) Businesses subject to the requirements of this part shall conduct educational outreach to their customers regarding the single-use checkout bag fee program.

§342H-C Remittance of fees. (a) No later than the last day of each month, each business subject to the requirements of this part shall remit to the department the fees collected pursuant to section 342H-B(a), less the amount retained pursuant to section 342H-B(d), during the immediately preceding month; provided that a small business may remit the fees on a quarterly basis on the last day of the month following the end of a quarter.

(b) Payments and receipts of fees shall be reported on forms prescribed by the director. Any proprietary information obtained by the department shall be kept confidential and shall not be disclosed to any other person.

(d) The department shall deposit all fees collected under this part into a special account in the environmental management special fund established by section 342G-63; provided that of the fees deposited:

(1) The first $1,200,000 per year shall be expended by the department for administrative, education, audit, compliance, and enforcement activities associated with collection of the single-use checkout bag fee; and

(2) Any remaining balance shall be distributed as follows:

(A) Fifty per cent shall be deposited into the general fund; and

(B) Fifty per cent shall be distributed to the counties in proportion to their populations, according to the latest census; provided that the counties shall expend at least twenty-five per cent of their shares for litter prevention, litter control, and litter clean-up programs.

§342H-D Violations. (a) 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 fee required to be charged and collected pursuant to section 342H-B.

(b) 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 Injunctive and other relief. The director may institute a civil action in any court of competent jurisdiction for injunctive and other relief to correct or abate violation of this part or any rule adopted pursuant to this part, to collect administrative penalties, or to obtain other relief.

§342H-F County ordinances. (a) Nothing in this part shall be construed to preempt or in any manner affect a county ordinance prohibiting or restricting single-use checkout bags; provided that the fee established under section 342H-B shall be applicable to single-use checkout bags that are not prohibited or restricted by a county ordinance and to single-use checkout bags for which county prohibitions or restrictions have not yet taken effect until the county prohibitions and restrictions take effect.

(b) Nothing in this part shall prohibit a county from enacting ordinances that are more stringent in the control or prohibition of single-use checkout bags than this part.

§342H-G Business reporting. By March 31 of each year, all businesses that are required to charge and collect the single-use checkout bag fee pursuant to section 342H-B shall submit to the department, on forms prescribed by the department, an annual report for the previous calendar year containing the following information:

(1) The number of single-use checkout bags provided to customers; and

(2) The number of reusable bags provided to customers.

§342H-H Audit authority. The records of each business subject to this part shall be made available, upon request, for inspection by the department or a duly authorized agent of the department. Any proprietary information obtained by the department or its duly authorized agent shall be kept confidential and shall not be disclosed to any other person, except:

(1) As may be reasonably required in an administrative or judicial proceeding to enforce any provision of this part or any rule adopted pursuant to this part; or

(2) Under an order issued by a court or administrative agency hearings officer.

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

§342H-J Annual report. The department shall submit to the legislature an annual report, no later than twenty days prior to the convening of each regular session, which shall include the department's efforts to effectuate this part, the number of single-use bags distributed, the statewide reduction rate in the number of single-use bags distributed, and any recommended policy changes needed to better effectuate the purpose of this part."

SECTION 3. Section 342G-63, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The department shall expend moneys contained in the environmental management special fund to:

(1) Partially fund the operating costs of the program including its regulatory functions and the development of waste reduction and diversion activities as mandated by chapter 342G;

(2) Fund statewide education, demonstration, and market development programs, through direct contract or direct transfer of funds to the counties and the department of business, economic development, and tourism, or under a grant program that may be developed under rules pursuant to chapter 91; [~~and~~]

(3) Provide for annual training for municipal solid waste operators in compliance with 40 Code of Federal Regulations Part 258 and chapter 11-58, Hawaii Administrative Rules[.];

(4) Fund administrative, audit, compliance, and enforcement activities associated with the single-use checkout bag fee established by part , chapter 342H; and

(5) Fund educational outreach regarding the single-use checkout bag fee program established by part , chapter 342H."

SECTION 4. No later than March 31, 2014, each business, as defined in section 2 of this Act, that is required to charge and collect the single-use checkout bag fee pursuant to this part shall submit to the department of health a one-time report listing the number of single-use checkout bags and reusable bags provided to customers by that business for the 2013 calendar year.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $1,200,000 or so much thereof as may be necessary for fiscal year 2013-2014 for initiating and administering all components of the single-use checkout bag fee program.

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

SECTION 6. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 7. Nothing in this Act shall be interpreted or applied so as to create any requirement, power, or duty in conflict with any federal or state law.

SECTION 8. 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 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect on July 1, 2013.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	356
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII