STAND. COM. REP. NO. 2030

Honolulu, Hawaii

RE:    S.B. No. 2931

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Energy and Environment, to which was referred S.B. No. 2931 entitled:

"A BILL FOR AN ACT RELATING TO RECYCLING,"

begs leave to report as follows:

     The purpose and intent of this measure is to amend the advance disposal fee for glass containers to a tiered structure based on the interior volume of the glass container.

     Your Committee received testimony in support of this measure from the City and County of Honolulu, County of Maui Department of Environmental Management, Reynolds Recycling, and one individual.  Your Committee received testimony in opposition to this measure from the Hawaii Food Industry Association, Wine Institute, Hawaii Liquor Wholesalers Association, Southern Wine and Spirits of Hawaii, and forty-six individuals.  Your Committee received comments on this measure from the Department of Health, Tax Foundation of Hawaii, and twelve individuals.

     Your Committee finds that the cost of recycling glass containers far exceeds the revenue that the State receives through the advance disposal fee, which is imposed on sealed glass containers that are not glass deposit beverage containers.  The result is a shortfall in payment for glass recycling or stoppages in the recycling of glass containers.

     Your Committee further finds that the advance disposal fee of 1.5 cents per glass container has not been increased since it was established on September 1, 1994.  Also, there is a huge disparity in weight between small glass containers and larger glass containers, which cost more to recycle.

     Your Committee has amended this measure by:

     (1)  Adding additional findings to section 1 based on information received from the Department of Health, counties, and recyclers; and

     (2)  Inserting language requesting that the State Auditor audit the advance disposal fee program at the earliest opportunity and again five years later and submit the results to the Legislature.

     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. 2931, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2931, S.D. 1, 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