STAND. COM. REP. NO. 240-20

Honolulu, Hawaii

, 2020

RE: H.B. No. 2025

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 2025 entitled:

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

begs leave to report as follows:

The purpose of this measure is to adjust the deposit beverage container fee annually by the percentage that the Consumer Price Index for All Urban Consumers (CPI) in the Honolulu area exceeds the previous year's CPI.

Your Committee received testimony in support of this measure from the Department of Health. 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 Reynolds Recycling.

Your Committee finds that this measure would allow the deposit beverage container fee to be adjusted annually for inflation. However, your Committee finds that adjusting the handling fee, rather than the deposit beverage container fee, for inflation would enable the recycling industry to continue to operate a recycling network that adequately services the public.

Your Committee has amended this measure by:

(1) Annually adjusting the amount of the handling fee, instead of the deposit beverage container fee, for inflation using the CPI; and

(2) Changing its effective date to July 1, 2050, to encourage further discussion.

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. 2025, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2025, 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