STAND. COM. REP. NO. 2918

Honolulu, Hawaii

RE: S.B. No. 2727

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2727, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to exempt 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.

Your Committee received testimony in support of this measure from the Department of Health and Reynolds Recycling. Your Committee received testimony in opposition to this measure from the Hawaii Food Industry Association.

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 further finds that under the deposit beverage container program, dealers are required to operate a redemption center unless the dealer is located in a high-density population and within two miles of a certified redemption center that is operated independently of a dealer. This results in a significant number of dealers being exempt from operating redemption centers. Therefore, limiting the exemption to one mile from a certified redemption center that is operated independently of a dealer provides more recycling opportunities to Hawaii consumers and improves the State's recycling rates.

Your Committee notes that S.B. No. 2726, S.D. 1 (Regular Session of 2020) contains language that requires annual adjustment of the deposit beverage container program handling fees, but has a measure title that may be too restrictive for its contents.

Therefore, your Committee has amended this measure by:

(1) Inserting the contents of S.B. No. 2726, S.D. 1, a measure that requires the Department of Health to annually adjust the handling fees for the deposit beverage container program 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; and

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

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2727, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2727, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,

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ROSALYN H. BAKER, Chair