STAND. COM. REP. NO. 182

Honolulu, Hawaii

RE:    S.B. No. 179

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Energy and Environment, to which was referred S.B. No. 179 entitled:

"A BILL FOR AN ACT RELATING TO THE DEPOSIT BEVERAGE CONTAINER PROGRAM,"

begs leave to report as follows:

     The purpose and intent of this measure is to remove the exemption for dietary supplements from the Deposit Beverage Container Program.

     Your Committee received testimony in support of this measure from Loretta J. Fuddy and Steven Chang, Department of Health; Robert Harris, Sierra Club, Hawai‘i Chapter; Marjorie Ziegler, Conservation Council for Hawai‘i; Marjorie Erway; Joy Leilei Shih; and Michael Gach.  Your Committee received testimony in opposition to this measure from John Hewitt, Grocery Manufacturers Association.

     Your Committee finds that the State's Deposit Beverage Container Program has proven to be an overwhelming success for Hawaii's environment and that increasing the types of beverage containers that can be collected for a refund will help further reduce the numbers of containers in landfills, on land, and in the water. 

     Your Committee further finds that energy drinks are becoming increasingly popular and are using the dietary supplement exemption to evade compliance with the State's Deposit Beverage Container Program law and that there is no logical basis for exempting this growing class of beverages from the program.  Your Committee has heard the concerns expressed in testimony regarding the potential unintended inclusion of non-liquids such as tablets, capsules, powders, energy bars, etc. and has determined that these concerns are unfounded as section 342G-101, Hawaii Revised Statutes, defines "deposit beverage" as "beer, ale, or other drink produced by fermenting malt, mixed spirits, mixed wine, tea and coffee drinks regardless of dairy-derived product content, soda, or noncarbonated water, and all nonalcoholic drinks in liquid form and intended for internal human consumption that is contained in a deposit beverage container."  The statute relates specifically to liquids only and this measure simply includes so-called energy drinks in the State's Deposit Beverage Container Program.

     As affirmed by the record of votes of the members of your Committee on Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 179 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

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

____________________________

MIKE GABBARD, Chair