STAND. COM. REP. NO. 1008

Honolulu, Hawaii

, 2021

RE: S.B. No. 180

S.D. 1

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 Energy & Environmental Protection, to which was referred S.B. No. 180, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO DEPOSIT BEVERAGE CONTAINERS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Exempt a beverage dealer who is in a high-density population area from operating a redemption center if the dealer is located within one mile, rather than two miles, of a certified redemption center operated independently of the dealer; and

(2) Require the Department of Health to annually adjust the handling fees for the Deposit Beverage Container Program to an amount not less than the handling fee in the prior calendar year as adjusted by percentage changes in the Consumer Price Index for the Honolulu area.

Your Committee received testimony in support of this measure from Reynolds Recycling and Zero Waste O‘ahu. Your Committee received testimony in opposition to this measure from the Hawaii Food Industry Association and American Beverage Association. Your Committee received comments on this measure from the Department of Health and Tax Foundation of Hawaii.

Your Committee finds that under existing law, there are many challenges in the administration and efficiency of the Deposit Beverage Container Program. Therefore, it is necessary to further examine the Deposit Beverage Container Program to provide more recycling opportunities to Hawaii consumers.

Your Committee has amended this measure by:

(1) Deleting its contents and inserting language from S.B. No. 349 (Regular Session of 2021), which requires 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 deposit beverage distributors and redemption centers for periodic audits;

(2) Changing the effective date to July 1, 2050, to encourage further discussion; and

(3) 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 Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 180, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 180, S.D. 1, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

NICOLE E. LOWEN, Chair