STAND. COM. REP. NO. 2581

Honolulu, Hawaii

RE: S.B. No. 2998

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Agriculture and Environment, to which was referred S.B. No. 2998 entitled:

"A BILL FOR AN ACT RELATING TO RECYCLING,"

begs leave to report as follows:

The purpose and intent of this measure is to require the Department of Health to implement the auditor's recommendations for the deposit beverage container program, including developing a risk-based selection process to select reports submitted by distributors and redemption centers for audit.

Your Committee received testimony in support of this measure from the Department of Health and American Beverage Association. Your Committee received testimony in opposition to this measure from one individual.

Your Committee finds that the Office of the Auditor conducts an audit of the Department of Health's deposit beverage container program each year. The audits repeatedly demonstrate the deposit beverage container program's failure to develop and execute procedures to verify the accuracy and completeness of data produced by the program. This measure requires the Department of Health to develop a risk-based process recommended by the Office of the Auditor to help mitigate flaws in the program.

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. 2998 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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

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MIKE GABBARD, Chair