Dept. of Health looks to change system after recycling shutdown

beverage containers

The Dept. of Health said Friday officials are looking to streamline the state’s HI-5 beverage recycling reimbursement system in order to prevent future shutdowns.

Reynolds Recycling shut down all 35 of its redemption centers Thursday because the state owed the company more than a million dollars for containers collected for the month.

“It’s when payments take a bit longer than we are expecting then it becomes a fiduciary issue that you can only stretch your budget so far,” Bruce Iverson, Reynolds’ marketing and development director, previously told KHON2.

The state cut a check to Reynolds for $707,000 for invoices presented to the department on June 10 and June 17. The partial payment was enough for Reynolds to reopen the centers Friday.

“Ninety-nine percent of the time we’re able to get a reimbursement check to all the recyclers within seven days to 10 days,” said Gary Gill, deputy director of environmental health. “Once in a while, once a year, there might be a few days delay. That’s what happened in this case.”

Gill says part of the issue is due to money management at the end of the fiscal year, because accounts need to be “adjusted” to make sure they stay in balance.

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