STAND. COM. REP. NO. 181

Honolulu, Hawaii

RE: S.B. No. 724

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Agriculture and Environment, to which was referred S.B. No. 724 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is, beginning July 1, 2026, to:

(1) Repeal the exemptions for certain dealers of deposit beverage containers and related provisions; and

(2) Require all dealers of deposit beverage containers to operate as redemption centers.

Your Committee received testimony in opposition to this measure from the Hawaii Food Industry Association, Reynolds Recycling, and one individual.

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

Your Committee finds that a significant contributing factor of declining beverage container redemption rates in the State is the scarcity and inaccessibility of redemption centers statewide. Your Committee recognizes that the exemptions in the existing law on the redemption of empty deposit beverage containers have resulted in a scarcity of redemption centers in many areas, which disincentivizes residents from redeeming empty deposit beverage containers because of the inconvenience and significant travel often required to do so. This measure upholds the purpose of container deposit laws by repealing all exemptions and requiring all dealers of deposit beverage containers to operate as redemption centers.

As affirmed by the record of votes of the members of your Committee on Agriculture and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 724 and recommends that it pass Second Reading and be referred to your Committee on Commerce and Consumer Protection.

Respectfully submitted on behalf of the members of the Committee on Agriculture and Environment,

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MIKE GABBARD, Chair