RELATING TO THE DEPOSIT BEVERAGE CONTAINER PROGRAM.

SB2416

THE SENATE

S.B. NO.

2416

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to the deposit beverage container program
.

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

����
SECTION
1
.
�
Section 342G-107, Hawaii Revised Statutes, is
amended to read as follows:

����
"
[
[
]�342G-107[
]
]
�

Management and financial audit.
�

The [
auditor shall conduct a management and financial audit of the
program for fiscal years 2004-2005 and 2005-2006,
]
department shall
contract the services of an independent auditor to conduct a management and
financial audit of the program for fiscal years 2024-2025 and 2025-2026,

and for each fiscal year thereafter ending in an even-numbered year.
�
The
independent
auditor shall submit
the audit report, including the amount of unredeemed refund value and recommendations,
to the legislature and the department no later than twenty days prior to the
convening of [
[
]the[
]
] next regular session.
�
The costs incurred by the
independent
auditor
for the audit shall be reimbursed by the deposit beverage container program
special fund.
�
[
The auditor may
contract the audit services of a third party to conduct the audit.
]"

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SECTION 2.
�

(a)
�
There is established a bag
drop pilot program to allow redeemers under the
deposit
beverage container program
to drop bags filled with empty deposit beverage
containers at a redemption center, leave before the containers are counted, and
be paid later.
�
The intent of the pilot
program is to increase Hawaii's fifty-five per cent redemption rate by making
the redemption process more convenient for consumers.

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(b)
�

Notwithstanding any other law to the contrary, the department of health
shall contract with one or more redemption centers to allow redeemers of empty
deposit beverage containers under chapter 342G, part VIII, Hawaii Revised
Statutes, to drop bags filled with empty deposit beverage containers at a
participating redemption center.

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(c)
�
The
participating redemption center shall not be required to count the containers
at the bag drop location or pay the redeemer at the time of the bag drop;
provided that:

����
(1)
�
The
participating redemption center registers and otherwise operates as a
redemption center under section 342G-114, Hawaii Revised Statutes;

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(2)
�
Each
dropped bag is labeled as being dropped by the redeemer in a manner established
by the department of health;

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(3)
�
The
participating redemption center counts the deposit beverage containers as
required by chapter 342G, Hawaii Revised Statutes; and

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(4)
�
The
participating redemption center pays the redeemer electronically no later than
ten days after the redeemer drops the bag.

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(d)
�

Payment to the redeemer may be in the form of a check, cash equivalent, or
voucher redeemable at a specific business; provided that if the payment is in
the form of a voucher redeemable at a specific business, that information shall
be clearly displayed at the bag drop location.
�

A voucher redeemable at a specific business shall not be subject to any
fees or have an expiration date.

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(e)
�
The
department of health may pay handling fees under section 342G-117, Hawaii
Revised Statutes, to a participating redemption center.

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(f)
�

Unless otherwise prohibited by law, the participating redemption center may
contract with any business to operate a bag drop site in the parking lot or
other location of the business and to issue payment vouchers redeemable at that
business.

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(g)
�

The bag drop pilot program shall terminate on June 30, 2031.

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(h)
�

No later than twenty days prior to the regular session of 2030, the
department of health shall submit a report to the legislature on the bag drop
pilot program.
�
The report shall include:

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(1)
�
An
estimate of the number of containers redeemed;

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(2)
�
The
amount paid to redeemers;

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(3)
�
A
recommendation of whether the pilot program should be terminated, made
permanent, or extended; and

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(4)
�
Any
proposed legislation.

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SECTION 3.
�

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

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SECTION 4.
�

This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Deposit Beverage
Container Program; Audit; Bag Drop Pilot Program; Department of Health

Description:

Repeals
requirement for Auditor to audit the Deposit Beverage Container Program and requires
that an independent auditor conduct the audits instead.
�
Establishes the Bag Drop Pilot Program to
allow redeemers of deposit beverage containers to drop bags of empty deposit beverage
containers at participating redemption sites and be paid later.

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