STAND. COM. REP. NO. 98

Honolulu, Hawaii

, 2025

RE: H.B. No. 786

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 786 entitled:

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

begs leave to report as follows:

The purpose of this measure is to:

(1) Amend the types of containers beverage dealers must accept for redemption and repeal certain exemptions for beverage dealers from the requirement to operate redemption centers;

(2) Allow for the establishment of regional centers for the redemption of refillable beverage containers in addition to existing redemption centers; and

(3) Require the Department of Health to establish a Reverse Vending Machine Pilot Program, using the Deposit Beverage Container Deposit Special Fund to provide grants to deploy reverse vending machines.

Your Committee received testimony in opposition to this measure from Hawaii Food Industry Association. Your Committee received comments on this measure from the Department of the Attorney General and Department of Health.

Your Committee finds that the State must ensure that consumers have access to redemption centers to recycle beverage containers. This measure addresses this need by allowing the Department of Health to use money from the Deposit Beverage Container Deposit Special Fund to deploy reverse vending machines, repealing certain exemptions for beverage dealers from the requirement to operate redemption centers, and allowing for the establishment of regional redemption centers.

Your Committee has amended this measure by:

(1) Clarifying that the Department of Health is not required to use grants to deploy reverse vending machines;

(2) Removing the requirements for the types of containers beverage dealers must accept;

(3) Reinstating the exemption for beverage dealers in high density population areas and changing the qualifications for the exemption to beverage dealers within one-half of a mile of a redemption center;

(4) Reinstating the requirement that a beverage dealer's place of business be less than five thousand square feet of interior space to qualify for the exemption;

(5) Removing the requirement for the Department of Health to establish a Reverse Vending Machine Pilot Program;

(6) Changing the effective date to July 1, 3000, to encourage further discussion; and

(7) 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 H.B. No. 786, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 786, 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