STAND. COM. REP. NO. 298

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1429
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Labor and Environment, to which was
referred S.B. No. 1429 entitled: 

     "A BILL FOR AN ACT RELATING TO WASTEWATER TREATMENT
     FACILITIES,"

begs leave to report as follows:

     The purpose of this measure is to exclude from the
definition of public utility any facility that reclaims
wastewater if at least ten per cent of the wastewater processed
is used by a state or county agency under a service agreement.

     Testimony in support of this measure was received from the
Department of Health and U.S. Filter Operating Services, Inc.
Testimony in opposition to this measure was received from the
Consumer Advocate of the Department of Commerce and Consumer
Affairs.

     Your Committee finds that this measure will help the
Department of Health achieve its goal of increasing the safe use
of recycled water throughout the State and believes that the
measure has merit.  Your Committee is referring the measure to
your Committee on Commerce and Consumer Protection for further
discussion.

     Your Committee has amended this measure to add provisos
clarifying that the exemption applies to a facility that:


 
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                                   STAND. COM. REP. NO. 298
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     (1)  Only processes and distributes secondary treated
          wastewater that has been produced by a municipal
          wastewater treatment facility;

     (2)  Does not sell water to residential customers; and

     (3)  Is not engaged in the processing of food wastes.

     As affirmed by the record of votes of the members of your
Committee on Labor and Environment that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1429, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 1429,
S.D. 1, and be referred to the Committee on Commerce and Consumer
Protection.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and
                                   Environment,



                                   ______________________________
                                   BOB NAKATA, Chair

 
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