RELATING TO THE ENVIRONMENT.

HB2196

HOUSE OF REPRESENTATIVES

H.B. NO.

2196

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to the environment
.

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

PART I

����
SECTION 1.
�
The purpose of this Act is to:

����
(1)
�
Repeal the main portion of the deposit
beverage container program on July 1, 2026,

����
(2)
�
Provide owners of empty deposit beverage
containers one year to redeem their empty containers for a refund; and

����
(3)
�
Transfer remaining funds in the deposit
beverage container deposit special fund to a newly established solar panel and
electric vehicle battery recycling special fund for the purposes of gathering
and recycling solar panels and electric vehicle batteries.

PART II

����
SECTION 2.
�
The purpose of this part is to terminate the
requirement for deposit beverage distributors to pay the fees associated with
each deposit beverage container.

����
SECTION
3
.
�
Section
342G-110, Hawaii Revised Statutes, is amended by amending subsection (a) to
read as follows:

����
"(a)
�
By January 1, 2005,
and ending on June 30,
2026,
every deposit beverage container sold in this State shall have a
refund value of 5 cents.
�
Each container
shall have the refund value clearly indicated on it as provided in section
342G-112."

����
SECTION
4
.
�
Section
342G-111, Hawaii Revised Statutes, is amended by amending subsection (a) to
read as follows:

����
"(a)
�
By January 1, 2005,
and ending on June 30,
2026,
every deposit beverage distributor who pays a deposit to the
department shall charge the dealer or consumer a deposit equal to the refund
value for each deposit beverage container sold in Hawaii.
�
The deposit charge may appear as a separate
line item on the invoice."

����
SECTION
5
.
�
Section
342G-102, Hawaii Revised Statutes, is repealed:

����
["
�342G-102

�
Deposit beverage container fee.
�
(a)
�

Beginning on October 1, 2002, every deposit beverage distributor shall
pay to the department a deposit beverage container fee on each polyethylene
terephthalate, high density polyethylene, or metal deposit beverage container
manufactured in or imported into the State.
�

The fee shall be imposed only once on the same deposit beverage
container.
�
The fee shall be 0.5 cents
per deposit beverage container.

����
(b)
�
Beginning on October 1, 2004, every deposit
beverage distributor shall pay to the department a deposit beverage container
fee on each deposit beverage container manufactured in or imported into the
State.
�
The deposit beverage container
fee shall not apply to deposit beverage containers exported for sale outside of
the State.
�
The fee shall be imposed only
once on the same deposit beverage container.
�

The fee shall be 1 cent per deposit beverage container.

����
(c)
�
No county shall impose or collect any
assessment or fee on deposit beverage containers for the same or similar
purpose that is the subject of this chapter.

����
(d)
�
Beginning January 1, 2005, and every August 1
thereafter, the department shall notify deposit beverage distributors in
writing of the amount of the deposit beverage container fee.
�
The effective date of changes to the fee
amount shall be September 1.
�
The fee
shall be based on the redemption rate calculated annually based on the
redemption rate information submitted to the department for the previous period
of July 1 through June 30.
�
The fee
amount shall be as follows:

����
(1)
�
If the
redemption rate is seventy per cent or less:
�

1 cent per container; and

����
(2)
�
If the
redemption rate is greater than seventy per cent:
�
1.5 cents per container.

����
(e)
�
The director may temporarily suspend an
automatic increase of the deposit beverage container fee if, after consultation
with the auditor, it is determined that the deposit beverage container deposit
special fund contains sufficient funds for the purposes of section 342G-104(b).
"]

����
SECTION
6
.
�
Section
342G-112, Hawaii Revised Statutes, is repealed.

����
["
�342G-112

�
Deposit beverage container requirements.
�
(a)
�

Except as provided in subsection (b), every deposit beverage container
sold in the State shall clearly indicate the refund value of the container and
the word "Hawaii" or the letters "HI".
�
The names or letters representing the names
of other states with comparable deposit legislation may also be included in the
indication of refund value.
�
The refund
value on every deposit beverage container shall be clearly, prominently, and
indelibly marked by painting, printing, scratch embossing, raised letter embossing,
or securely affixed stickers and shall be affixed on the top or side of the
container in letters at least one-eighth inch in size.

����
(b)
�
Subsection (a) shall not apply to any type of
refillable glass deposit beverage container that has a brand name permanently
marked on it and that has the equivalent of a refund value of at least 5 cents,
which is paid upon receipt of the container by a dealer or deposit beverage
distributor.

����
(c)
�
Containers that do not meet the definition of
a deposit beverage container, as specified in section 342G-101, shall not
indicate "Hawaii" or "HI" on the container.
"]

PART III

����
SECTION 7.
�
The purpose of this part is to provide owners
of empty deposit beverage containers one year to redeem their empty containers
for a refund.

����
SECTION 8.
�
Chapter 342G, part VIII, Hawaii Revised
Statutes, is repealed.

PART IV

SECTION 9.
�
(a)
�
The
department of health may establish rules without regard to chapter 91, Hawaii
Revised Statutes, to:

����
(1)
�
Require reports
related to the deposit beverage container program established under chapter
342G, part VIII, Hawaii Revised Statutes;

����
(2)
�
Allow payments to
redemptions centers to occur as established under chapter 342G, part VIII,
Hawaii Revised Statutes; and

����
(3)
�
Authorize audits
to occur and penalties to be imposed,

after part III of this Act becomes effective.
�
Any rules adopted under this subsection shall
be substantially similar to the requirements under chapter 342G, part VIII,
Hawaii Revised Statutes, as that part existed on January 1, 2026.

����
(b)
�
After part III of this Act becomes effective,
the department of health may expend moneys in the solar panel and electric
vehicle battery recycling special fund to make payments to deposit beverage
container redemptions centers.

PART V

����
SECTION 10.
�
Chapter 342G, Hawaii Revised Statutes, is
amended by adding a new section to be appropriately designated and to read as
follows:

����
"
�342G-
�
�
��
Solar panel and electric vehicle battery recycling
special fund.
�
(a)
�
There is established the solar panel and
electric vehicle battery recycling special fund.

����
(b)
�
Moneys is the solar panel and electric
vehicle battery recycling special fund shall be used for solar panel and
electric vehicle battery gathering and recycling.
"

����
SECTION 11.
�
No later than twenty days prior to the
regular session of 2027, the department of health shall submit proposed
legislation for establishing a program to gather and process solar panels and
electric vehicle batteries for recycling.

����
SECTION 12.
�
On the date part III of this Act becomes
effective, any unencumbered balance in the deposit beverage container deposit
special fund shall lapse to the credit of the solar panel and electric vehicle
battery recycling special fund.

����
SECTION 13.
�
(a)
�

The management and financial audit report required under section
342G-107, Hawaii Revised Statutes, for the 2025-2026 fiscal year shall include
a status report on the closing of the deposit beverage container program.

����
(b)
�

The auditor shall conduct a management and financial audit of the
deposit beverage container program for fiscal year 2026-2027.
�
The auditor shall submit the audit report,
including the status on the closing of the deposit beverage container program,
the amount of any unredeemed refund value, and any recommendations, to the
legislature and the department of health no later than twenty days prior to the
convening of the regular session of 2028.
�

The costs incurred by the auditor shall be reimbursed by the solar panel
and electric vehicle battery recycling special fund established under section
342G-
���
, Hawaii Revised Statutes.
�
The auditor may contract the audit services
of a third party to conduct the audit.

PART VI

����
SECTION 14.
�
This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.

����
SECTION 15.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION
16
.
�
This Act shall
take effect upon its approval; provided that:

����
(1)
�
Part II shall take
effect on June 30, 2026; and

����
(2)
�
Part III shall
take effect on June 30, 2027.

INTRODUCED BY:

_____________________________

Report Title:

Deposit Beverage
Container Program; Repeal; DOH; Special Fund

Description:

Repeals
the Deposit Beverage Container program on 6/30/26.
�
Allows redemptions to continue until 6/30/27.
�
Establishes the solar panel and electric
vehicle battery recycling special fund to assist in the gathering and recycling
of solar panels and electric vehicle batteries.
�

Requires the Department of Health to submit proposed legislation
establishing a program to gather and recycle solar panels and electric vehicle
batteries.
�
Lapses any unencumbered
balance remaining in the deposit beverage container deposit special fund when
the Deposit Beverage Container program is repealed to the credit of the solar panel
and electric vehicle battery recycling special fund.

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