STAND. COM. REP. NO. 2719

Honolulu, Hawaii

RE: S.B. No. 2721

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committees on Commerce, Consumer Protection, and Health and Agriculture and Environment, to which was referred S.B. No. 2721 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to require the Department of Health to implement the Auditor's recommendations for the Deposit Beverage Container Program, including developing a risk-based selection process to select reports submitted by distributors and redemption centers for audit.

Your Committees received testimony in support of this measure from the Department of Health, American Beverage Association, and one individual. Your Committees received testimony in opposition to this measure from Reynolds Recycling.

Your Committees find that since January 2005, the Deposit Beverage Container Program has assisted residents to recycle by helping to remove these containers from the waste stream and reduce litter in the community. The program certifies independent recycling companies to operate certified redemption centers statewide who provide Hawaii consumers with refunds of the five‑cent deposit fee that is paid for eligible containers. The Department of Health then pays each certified redemption center a handling fee of not less than five cents for each deposit beverage container redeemed. This measure ensures that distributor and redemption center reports are accurate and account for all the eligible beverage containers entering the State, later redeemed, and subsequently reimbursed.

Your Committees have amended this measure by:

(1) Clarifying the requirements of a distributor and redemption center;

(2) Expanding the types of equipment that can be used to accurately and securely record deposit beverage container redemption transactions to include electronic devices; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection, and Health and Agriculture and Environment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2721, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2721, S.D. 1, and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committees on Commerce, Consumer Protection, and Health and Agriculture and Environment,

________________________________ MIKE GABBARD, Chair

________________________________ ROSALYN H. BAKER, Chair