HI HB2260

Requires all Hawaii businesses to charge customers a 5-cent fee for each single-use checkout bag starting January 1, 2013, with automatic increase to 10 cents on January 1, 2017, if statewide distribution has not decreased by at least 75 percent.

Allows businesses to retain 40 percent of collected fees in 2013 (or 10 percent from 2014 onward) in counties without prior plastic bag bans, and 40 percent in counties with prior bans, subject to income and general excises taxes.

Exempts single-use bags from the fee for specific purposes including produce/bulk items, frozen foods, prescription medications, newspaper delivery, and garbage/pet waste bags.

Directs collected fees to the natural area reserve fund (40 percent), agricultural development and food security special fund (20 percent), and general fund (remainder).

Requires businesses to report annually on single-use checkout bags provided and allows the Department of Health to audit business records; violations subject to fines of at least $1,000 each.