STAND. COM. REP. NO. 3233

Honolulu, Hawaii

RE:    S.C.R. No. 74

       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 Ways and Means, to which was referred S.C.R. No. 74, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF HEALTH TO CONVENE A TASK FORCE OR WORKING GROUP TO EXAMINE LOCAL ALTERNATIVES TO SHIPPING GLASS OUT OF STATE, DETERMINE THE FEASIBILITY AND COSTS OF SUCH LOCAL ALTERNATIVES COMPARED TO SHIPPING THE GLASS OUT OF STATE, AND RECOMMEND ANY CHANGES TO THE ADVANCE DISPOSAL FEE AND REQUESTING THE AUDITOR TO CONDUCT AN AUDIT OF THE ADVANCE DISPOSAL FEE PROGRAM,"

begs leave to report as follows:

     The purpose and intent of this measure is to request the Department of Health to convene a task force or working group to examine feasible alternatives to shipping glass out of state as well as recommend any changes to the advance disposal fee assessed upon importers of certain glass containers.

     In addition, this measure requests the Auditor to conduct an 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.

     Your Committee received written comments in support of this measure from the Wine Institute.  The Department of Health submitted written comments on the measure.

     Your Committee finds that the high cost of shipping glass out of state and the rapid depletion of the advance disposal fee revenue require the State to consider new alternatives to reducing the cost of shipping glass out of state.  Further, the limited market in Hawaii for scrap glass has created a dependency on out-of-state recycling centers.  Your Committee further finds that an audit of the State's advance disposal fee program, with input from various stakeholders, will bring innovative and feasible proposals and alternatives to shipping glass out of state.  Your Committee believes that this measure will effectively evaluate the viability of the advance disposal fee program and ensure that any increase in fees are necessary for Hawaii's glass recycling needs.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 74, S.D. 1, and recommends its adoption.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair