STAND. COM. REP. NO. 1054-20

Honolulu, Hawaii

, 2020

RE: S.B. No. 2727

S.D. 2

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 S.B. No. 2727, S.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this measure is to amend the Deposit Beverage Container Program by:

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

(2) Requiring the Department of Health to adjust the handling fees for the Program at least annually 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, Inc. 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 Department of Environmental Services of the City and County of Honolulu.

Your Committee finds that since January 2005, the Deposit Beverage Container Program has encouraged residents to recycle, which helps to remove containers from the waste stream and reduce litter in the community. The Program certifies independent recycling companies to operate redemption centers that collect recyclable containers and provide Hawaii consumers with refunds of the five-cent deposit fee that is paid for eligible containers.

Your Committee has amended this measure by 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 S.B. No. 2727, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2727, S.D. 2, 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