THE SENATE	S.C.R. NO.	74
TWENTY-SEVENTH LEGISLATURE, 2014		S.D. 1
STATE OF HAWAII		H.D. 1

SENATE CONCURRENT

RESOLUTION

REQUESTING AN examination and AUDIT OF THE ADVANCE DISPOSAL FEE PROGRAM.

     WHEREAS, the cost of recycling non-deposit glass containers exceeds the revenue that the State collects through the 1.5 cent fee imposed on each of these glass containers through the Department of Health's advance disposal fee program; and

     WHEREAS, the counties receive approximately 90 per cent of the revenue collected and establish the amount that they pay glass recyclers for accepting recyclable glass from the counties; and

     WHEREAS, the counties report that they commonly exhaust the advance disposal fee revenues before the end of each fiscal year; and

     WHEREAS, there is a limited market in Hawaii for scrap glass, so most recyclable glass is shipped elsewhere; and

     WHEREAS, the high cost of shipping and the relatively low revenue from scrap glass are major causes of the advance disposal fee program's deficit; and

     WHEREAS, requiring that the advance disposal fee cover the entire cost of shipping scrap glass to recyclers would cause consumers to pay for shipping glass containers both to and from the State; and

     WHEREAS, before requiring consumers to pay a higher disposal fee, the existing recycling program, including the use of State funds by the counties, should be examined; and
     WHEREAS, an audit of the State's deposit beverage container program found significant deficiencies in that program's administration; and

     WHEREAS, it is necessary to examine whether the advance disposal fee program is the most cost-effective way to handle recyclable glass, and how costs may be reduced; and

     WHEREAS, an examination of the advance disposal fee is necessary to determine whether changes to the fee are warranted; now, therefore,

     BE IT RESOLVED by the House of Representatives of the Twenty-seventh Legislature of the State of Hawaii, Regular Session of 2014, the Senate concurring, that the Department of Health is requested to meet with the respective counties and other stakeholders to examine the advance disposal fee program to determine whether there are more cost-effective ways of handling recyclable glass, including local alternatives to shipping glass out of the State; and

BE IT FURTHER RESOLVED that the Auditor is requested to conduct an examination and audit of the Department of Health's advance disposal fee program, including the use of fee revenue by the respective counties and the accuracy of payments made to recyclers from fee revenues; and

     BE IT FURTHER RESOLVED that the Auditor is requested to include in the audit an examination of local alternatives to shipping glass containers out of the State for recycling, such as local conversion of glass to sand or the use of glass as landfill cover or in roadway asphalt, and whether these programs would be environmentally and economically prudent alternatives; and

     BE IT FURTHER RESOLVED that the Auditor is requested to confer with affected businesses in preparing the audit; and

     BE IT FURTHER RESOLVED that the Auditor is requested to submit the findings and recommendations from the audit to the Legislature no later than 20 days prior to the convening of the Regular Session of 2015; and
     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Auditor, Director of Health, Director of Finance, and the mayors of each county.

Report Title: 

Requesting an examination and audit of the advance disposal fee program.