STAND. COM. REP. NO. 138

Honolulu, Hawaii

RE:    S.B. No. 1169

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Energy and Environment, to which was referred S.B. No. 1169 entitled:

"A BILL FOR AN ACT RELATING TO THE GLASS ADVANCE DISPOSAL FEE PROGRAM,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Create a working group to review and discuss the findings and recommendations contained in the 2014 audit report of the Department of Health's glass advance disposal fee program; and

     (2)  Require the working group to submit a written report to the Legislature prior to the Regular Session of 2016.

     Your Committee received testimony in support of this measure from the Wine Institute, Hawaii Food Industry Association, and Hawaii Liquor Wholesalers Association.  Your Committee received testimony in opposition to this measure from the Department of Health.  Your Committee received comments on this measure from the Office of the Auditor.

     Your Committee finds that the findings and recommendations contained in the December 2014 audit report of the Department of Health's glass advance disposal fee program (Report No. 14-16) and the December 2014 study to identify local alternatives to shipping non-deposit glass out of the State (Report No. 14-17) can provide valuable guidance regarding the glass advance disposal fee program and non-deposit glass recycling.  The implementation of this measure will facilitate discussion on how to effectively, economically, and efficiently handle glass recycling in the State.

     Your Committee has amended this measure by:

     (1)  Amending the composition of the working group by removing the State Auditor and adding one representative from Hawaii's food and beverage industry, one representative with non-deposit glass importation experience, and one representative with glass recycling experience;

     (2)  Amending the duties of the working group to include developing solutions to address the findings and recommendations contained in the December 2014 study to identify local alternatives to shipping non-deposit glass out of the State (Report No. 14-17) and considering any other issues the working group deems appropriate, based on the findings and recommendations contained in the study; and

     (3)  Amending the purpose section accordingly.

     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. 1169, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1169, 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