STAND. COM. REP. NO. 102

Honolulu, Hawaii

, 2021

RE: H.B. No. 516

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Government Reform, to which was referred H.B. No. 516 entitled:

"A BILL FOR AN ACT RELATING TO SUSTAINABLE ELECTRONICS MANAGEMENT,"

begs leave to report as follows:

The purpose of this measure is to promote electronics stewardship and reduce electronic waste in the State by requiring all persons who receive state financial assistance to donate unnecessary but functioning electronic devices to nonprofit organizations that will refurbish and distribute these devices to eligible persons in the State.

Your Committee received testimony in support of this measure from Hawaiian Hope Org and five individuals. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs, Department of Education, and Department of Accounting and General Services.

Your Committee finds that use of electronic devices has grown substantially over the past two decades, which has also led to a considerable amount of waste in consumer electronics goods. While recycling of electronic devices prevents valuable materials from being wasted, prevention of waste in the first place is preferable to any waste management option. Your Committee further finds that access to devices and technology resources for low-income families and other populations in need of access is a long-standing issue, which has become more evident with the onset of the COVID-19 pandemic. This measure will promote electronic stewardship and reduce electronic waste in the State by keeping unnecessary but functioning electronic devices from being wasted and instead refurbishing those electronic devices for donation to those in need of the devices.

Your Committee has amended this measure by:

(1) Clarifying that a covered refurbisher is an organization that is registered with the Business Registration Division of the Department of Commerce and Consumer Affairs;

(2) Requiring a covered entity to remove data and any content that may be deemed inappropriate for persons under the age of eighteen from an excess electronic device prior to its transfer;

(3) Clarifying that a covered refurbisher shall transfer title to and possession of a refurbished device to an eligible recipient at a price not to exceed $50 per refurbished device; provided that enterprise level hardware that is refurbished may be priced at more than $50;

(4) Requiring the Department of Accounting and General Services to notify all covered entities of their new responsibilities under this measure;

(5) Changing its effective date to July 1, 2112, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Government Reform that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 516, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 516, H.D. 1, and be referred to your Committee on Higher Education & Technology.

Respectfully submitted on behalf of the members of the Committee on Government Reform,

____________________________

ANGUS L.K. McKELVEY, Chair