Report Title:

Taxation; Bottled Water

 

Description:

Imposes a 5 cent surcharge for bottled water produced or distributed in the State to protect watershed areas and to fight invasive species.

 

 


HOUSE OF REPRESENTATIVES

H.B. NO.

3445

TWENTY-FOURTH LEGISLATURE, 2008

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO WATER.

 

 

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

 


     SECTION 1.  The legislature finds that the ancient Hawaiian culture strongly recognized the value of clean water and believed that without water there would be no life.  The legislature further finds that Hawaii's watersheds provide an efficient and natural way of capturing and storing clean water.  Hawaii's watersheds and forests not only capture and purify water, it protects the health of our reefs and beaches, cleans and cools the air, and serves as a defense against flood, drought, and climate change.

     The cost of replicating any one of these essential and ecological amenities through modern engineering technology is improbable, if not cost prohibitive.  Furthermore, a 1999 study by the University of Hawaii estimated the value of the Koolau mountain forests--one of twelve major watershed areas in the State to be between $7,400,000,000 and $14,000,000,000.  Unfortunately, resources to assist in the management of the State's ecological system as well as for data collection and planning requirements have been in decline.

     On the other hand, the bottled water industry generates an estimated $46,000,000,000 annually.  The legislature finds that in many instances, advertisements by the bottled water industry are designed to undermine public confidence in the safety and quality of municipal water supplies, despite the fact that in the United States and Europe there is more quality regulation of tap water than there is of bottled water.

     Bottled water is also not environmentally friendly.  Often originating from tap water, bottled water is contained in petroleum-based plastic bottles, are hauled long distances to be sold for exorbitant prices, and disposed of in ever-shrinking landfills.  Bottled water may cost two hundred forty to ten thousand times more than the same amount of tap water used with a profit margin between fifty and two hundred per cent.

     The purpose of this Act is to assess and collect a 5 cent surcharge on all bottled water produced or distributed in the State to protect and preserve Hawaii's watershed areas and to fight invasive species.

     SECTION 2.  Chapter 194, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§194-A  Invasive species special fund.  (a)  There is established in the state treasury the invasive species special fund, into which shall be deposited:

     (1)  Revenues from the bottled water special fund under section 340E-B;

     (2)  Appropriations made by the legislature into the fund;

     (3)  Accrued interest from the fund; and

     (4)  Any other funding made by private or government sources.

     (b)  Moneys in the invasive species special fund shall be used to:

     (1)  Fund administrative, audit, and compliance expenses associated with the fund; and

(2)  Fulfill the purposes of this chapter as directed by the invasive species council under section 194-2."

     SECTION 3.  Chapter 340E, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

     "§340E-A  Bottled water surcharge.  (a)  Beginning on October 1, 2008, every deposit beverage distributor shall pay to the department, a bottled water surcharge on each container of bottled water manufactured in, or imported into the State.  The surcharge shall be imposed only once on the same container of bottled water.  The surcharge shall be 5 cents per container of bottled water.

     (b)  No county shall impose or collect any assessment or surcharge on bottled water for the same or similar purpose that is the subject of this section.

     (c)  The department may retain a reasonable portion of the surcharge collected under this section for administrative purposes before depositing the balance of the proceeds into the bottled water special fund under section 340E-B.

     (d)  For the purposes of this section;

     "Bottled water" means water that is individually bottled in polyethylene terephthalate or high density polyethylene containers and sold for public consumption.

     "Deposit beverage distributor" has the same meaning as that term is defined in section 342G-101.

     §340E-B  Bottled water special fund.  (a)  There is established in the state treasury the bottled water special fund, into which shall be deposited:

     (1)  All revenues generated from the bottled water surcharge under section 340E-A;

     (2)  All appropriations made by the legislature into the fund;

     (3)  All accrued interest from the fund; and

     (4)  Any other funding made by private or government sources.

     (b)  Moneys in the bottled water special fund shall be used as follows:

     (1)  Funding of administrative, audit, and compliance expenses associated with this fund; and

     (2)  Fifty per cent of the balance remaining in the fund after expenses under paragraph (1) are paid, shall be deposited into the:

          (A)  Forest stewardship fund under section 195F-4; and

          (B)  Invasive species fund under section 194-A."

     SECTION 4.  Section 194-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  There is established the invasive species council for the special purpose of providing policy level direction, coordination, financing, and planning among state departments, federal agencies, and international and local initiatives for the control and eradication of harmful invasive species infestations throughout the State and for preventing the introduction of other invasive species that may be potentially harmful.  The council shall:

     (1)  Maintain a broad overview of the invasive species problem in the State;

     (2)  Advise, consult, finance, and coordinate invasive species-related efforts with and between the departments of agriculture, land and natural resources, health, and transportation, as well as state, federal, international, and privately organized programs and policies; provided that funds from the invasive species special fund under section 194-A shall be distributed to the various county invasive species committees for the purposes of this chapter;

     (3)  Identify and prioritize each lead agency's organizational and resource shortfalls with respect to invasive species;

     (4)  After consulting with appropriate state agencies, create and implement a plan that includes the prevention, early detection, rapid response, control, enforcement, and education of the public with respect to invasive species, as well as fashion a mission statement articulating the State's position against invasive species;

     (5)  Coordinate and promote the State's position with respect to federal issues, including:

         (A)  Quarantine preemption;

         (B)  International trade agreements that ignore the problem of invasive species in Hawaii;

         (C)  First class mail inspection prohibition;

         (D)  Whether quarantine of domestic pests arriving from the mainland should be provided by the federal government;

         (E)  Coordinating efforts with federal agencies to maximize resources and reduce or eliminate system gaps and leaks, including deputizing the United States Department of Agriculture's plant protection and quarantine inspectors to enforce Hawaii's laws;

         (F)  Promoting the amendment of federal laws as necessary, including the Lacey Act Amendments of 1981, Title 16 United States Code sections 3371‑3378; Public Law 97-79, and laws related to inspection of domestic airline passengers, baggage, and cargo; and

         (G)  Coordinating efforts and issues with the federal Invasive Species Council and its National Invasive Species Management Plan;

     (6)  Identify and record all invasive species present in the State;

     (7)  Designate the department of agriculture, health, or land and natural resources as the lead agency for each function of invasive species control, including prevention, rapid response, eradication, enforcement, and education;

     (8)  Identify all state, federal, and other moneys expended for the purposes of the invasive species problem in the State;

     (9)  Identify all federal and private funds available to the State to fight invasive species and advise and assist state departments to acquire these funds;

    (10)  Advise the governor and legislature on budgetary and other issues regarding invasive species;

    (11)  Provide annual reports on budgetary and other related issues to the legislature twenty days prior to each regular session;

    (12)  Include and coordinate with the counties in the fight against invasive species to increase resources and funding and to address county-sponsored activities that involve invasive species;

    (13)  Review state agency mandates and commercial interests that sometimes call for the maintenance of potentially destructive alien species as resources for sport hunting, aesthetic resources, or other values;

    (14)  Review the structure of fines and penalties to ensure maximum deterrence for invasive species-related crimes;

    (15)  Suggest appropriate legislation to improve the State's administration of invasive species programs and policies;

    (16)  Incorporate and expand upon the department of agriculture's weed risk assessment protocol to the extent appropriate for the council's invasive species control and eradication efforts; and

    (17)  Perform any other function necessary to effectuate the purposes of this [[]chapter[]]."

     SECTION 5.  Section 195F-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  There is established a special fund within the state treasury known as the forest stewardship fund which shall be used as follows:

     (1)  Payments shall be made by the board pursuant to agreements entered into with qualified landowners to further the purposes of this chapter;

     (2)  Moneys collected from:

         (A)  The harvest of non-native forest products from forest reserves;

         (B)  The harvest of native forest products from degraded forests as defined in section 186-5.5, within forest reserves;

         (C)  The sale of forest products found dead and lying on the ground;

         (D)  The sale of tree seedlings from state nurseries;

         (E)  The sale of any other products or services, or anything of value derived from forest reserves not described above; [or]

         (F)  Proceeds from the bottled water special fund under section 340E-B; and

     [(F)] (G) The imposition of fines or penalties for violations of this chapter and chapters 183 and 185 or any rule adopted thereunder;

          shall be used for:  (i) replanting, managing, and maintaining designated timber management areas; (ii) enhancing the management of public forest reserves with an emphasis on restoring degraded koa forests; [and] (iii) developing environmental education and training programs pertaining to sustainable forestry; and managing and protecting watershed areas; provided that the activities described in clauses (ii) and (iii) may not be funded unless the activities described in approved management plans pertaining to clause (i) are adequately funded; and

     (3)  Moneys deposited into the fund as authorized by section 247-7 may also be used by the department to administer the program and manage the forest reserve system."

     SECTION 6.  There is appropriated out of the general revenues of the State of Hawaii the sum of $       or so much thereof as may be necessary for fiscal year 2008-2009 to be deposited into the bottled water special fund under section 340E-B.

     SECTION 7.  In codifying the new sections added by this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

     SECTION 8.  This Act shall take effect upon its approval; provided that sections 6 and 7 shall take effect on July 1, 2008.

 

INTRODUCED BY:

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