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The Honolulu Advertiser
Posted on: Sunday, May 12, 2002

Bottle recycling, cigarette tax among bills approved

Advertiser Staff

Some of the other major business-related bills passed by the 2002 Legislature earlier this month. For more information on these and other bills, go to the Legislature's Web site.

• State budget

• Among other things, earmarks about $450 million for state construction projects that could invigorate the state's construction and contracting industry.

• Bottle recycling

• Imposes a nickel deposit on most bottles, cans and plastic beverage containers beginning in 2005. Those deposits would be refunded to consumers when the beverage containers are returned for recycling. The bill also phases in an additional charge of up to 1 1/2 cents per beverage container that the state Health Department would use to subsidize the recycling industry.

• Environmental promotion

• Authorizes the Department of Land and Natural Resources to develop or contract with private entities to produce environmentally themed products — such as collectible stamps, credit cards, and coins — to be sold commercially to the public to increase revenues in the endangered species trust fund.

• Antitrust

• Allows anyone to bring a class-action claim on behalf of indirect purchasers alleging antitrust violations, provided the state attorney general is notified of the suit in advance. Currently only the attorney general can file such suits.

• Cigarette tax

• Increases the tax on cigarettes from $1 per pack to $1.40 per pack in three steps to raise an extra $16 million a year for the state. Increases take effect in October, when the tax goes from $1 to $1.20; in July 2003, when it increases from $1.20 to $1.30; and in July 2004, when it increases to $1.40 per pack.

• Travel charge

• Imposes a new passenger fee of up to $4.50 for each overseas or international traveler who uses a state airport, to help pay for airport operations and security. The fee will not apply to interisland travelers. The bill waives minimum rents for airport concessionaires such as Duty Free Shoppers indefinitely, until the concessionaires' business returns to pre-Sept. 11 levels. Lawmakers last year granted similar relief to concessionaires through April 30. Gov. Ben Cayetano has indicated he may veto the new rent breaks for the concessionaires. The bill makes that difficult because the administration wants to impose the passenger fees.

• Tourism money

• Among other things, caps the amount the Hawai'i Tourism Authority receives from the hotel room tax at $63 million, reducing the percentage of the hotel tax that is transferred to the authority from 37.9 percent to 32.6 percent. The bill would transfer hotel room tax collections above that level into the general treasury, and require the authority to spend $1 million on support of natural resources.

• Ferry bonds

• Authorizes up to $15 million in special facility revenue bonds for a ferry system between West O'ahu and Aloha Tower.