STAND. COM. REP. NO. 60-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 1993

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 1993 entitled:

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

begs leave to report as follows:

The purpose of this measure is to allow for the establishment of additional regional centers for the redemption of refillable beverage containers and repeal certain exemptions for beverage dealers from the requirement to operate redemption centers.

Your Committee received comments on this measure from the Department of Health.

Your Committee finds that expanding consumer access to redemption centers for deposit beverage containers and refillable beverage containers is essential to reducing litter and maintaining the environmental health of the State. By repealing all of the existing statutory exemptions for beverage dealers, this measure would significantly increase consumer access to redemption centers; however, your Committee recognizes that this may also pose significant financial and logistical hardships for beverage dealers within a short period of time. Your Committee therefore finds that amendments are necessary to alleviate some of these concerns.

Your Committee has amended this measure by:

(1) Inserting provisions requiring the Department of Health to establish a reverse vending machine pilot program to use funds from the Deposit Beverage Container Deposit Special Fund to provide grants to deploy reverse vending machines in the State;

(2) Reinstating the exemptions for beverage dealers that are located in rural areas, that subcontract for a certified redemption center to be operated on their premises, and that sell deposit beverage containers only via vending machines;

(3) Reinstating the exemption for beverage dealers that pertains to the square foot size of the buisness but changes the maximum square footage to an unspecified number;

(4) Reinstating the requirement for dealers who are not redemption centers to post a sign with information for the closest redemption center locations;

(5) Changing the effective date to July, 1, 3000; and

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

Your Committee recognizes that under this measure, as amended, some beverage dealers would still lose their existing exemption from the requirement to operate a redemption center. Your Committee has heard the concerns regarding the need for a phase-in period for beverage dealers who will lose their exemption and respectfully requests your Committee on Consumer Protection & Commerce, should it deliberate on this measure, to determine an appropriate phase-in period.

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 H.B. No. 1993, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1993, 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