STAND. COM. REP. NO.  641-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2434

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Economic Development & Business Concerns, to which was referred H.B. No. 2434, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENVIRONMENTAL PROTECTION,"

begs leave to report as follows:

     The purpose of this bill is to reduce the amount of waste in Hawaii's landfills and protect Hawaii's marine life by requiring that certain stores implement an At-Store Plastic Carryout Bag Recycling Program (Program) that also encourages consumers to use reusable shopping bags.

     Your Committee received testimony in support of this bill from the Retail Merchants of Hawaii, American Chemistry Council, Windward Ahupuaa Alliance, Hawaii's Thousand Friends, the Hawaii Food Industry Association, and several concerned individuals.  Styrophobia, LLC supported the intent of the measure.  Sierra Club, Department of Health (DOH), and several concerned individuals opposed this measure.  Several concerned individuals offered comments.

     The cost of living in Hawaii is among the highest in the nation, and Hawaii can ill afford to further increase these costs.  Your Committee is particularly aware of this in light of the economic slowdown predicted by the Council on Revenues and the threat of a nationwide economic recession.  However, your Committee also recognizes that the Legislature must play an active role in safeguarding our environment and moving our state toward environmentally friendly practices and habits.

     With an eye toward balancing these concerns, your Committee has amended this bill by:

(1)  Clarifying which stores and retail establishments fall under the Program;

(2)  Including language to ensure that no public agency imposes a plastic carryout bag ban or fee in addition to those prescribed in this measure;

(3)  Allowing retailers experiencing financial or physical hardship to be exempted from the Program;

(4)  Appropriating an unspecified amount of general funds to be expended by DOH to implement the Program;

(5)  Pushing back the deadline for DOH's progress report to the Legislature on the Program, from 2010 to 2011; and

(6)  Changing the effective date to July 1, 2034, to allow further discussion.

Other technical, nonsubstantive amendments were also made for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2434, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.B. No. 2434, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business Concerns,

____________________________

KYLE T. YAMASHITA, Chair