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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1610 |
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THIRTY-THIRD LEGISLATURE, 2026 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to the DEPOSIT beverage container program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that deposit beverage distributors are subject to unnecessary administrative burdens relating to auditing under the deposit beverage container program. Currently, all deposit beverage distributors are required to obtain independent audits in years ending in an odd number. The legislature further finds that this independent audit requirement is in addition to a risk-based process for auditing of deposit beverage distributors and redemption centers. Removing the requirement for independent audits will ensure that small and mid-sized businesses are not burdened by high compliance costs while still maintaining effective oversight through the risk-based process for auditing.
Accordingly, the purpose of this Act is to:
SECTION 2. Section 342G-121.5, Hawaii Revised Statutes, is amended to read as follows:
"[[]§342G-121.5[]] Risk-based selection process; audit. (a) The department shall develop a risk-based
process to select, for periodic audit, certain deposit beverage distributor and
redemption center reports submitted to the deposit beverage container program. The department may hire personnel or external
consultants to perform the audits. In
developing a risk-based process to audit certain deposit beverage distributor
and redemption center reports, the department shall:
(1) Consider a variety of risk factors, including but not limited to the amount of money transacted, prior audit findings, and frequency of the deposit beverage distributor's or redemption center's prior audits;
(2) Require selected deposit beverage distributors and redemption centers to send monthly or semi-annual distribution reports and supporting records, such as schedules of invoices, shipping documents, point-of-sale reports, and other documentation as required by the department, to the deposit beverage container program; and
(3) Ensure that the audit process includes a risk assessment derived from deposit beverage distributor and redemption center data based on the reports submitted, including but not limited to carrying out analytics and trend analyses to target certain deposit beverage distributors and redemption centers having unusual fluctuations.
(b) The department shall:
(1) Summarize the results of the deposit beverage distributor and redemption center audits and assess whether enforcement actions should be considered to ensure that the amounts that are being reported are accurate;
(2) Consider conducting follow-up audits; and
(3) Consider publicly announcing violations.
[(c) All deposit beverage distributors shall:
(1) Develop and
submit to the deposit beverage container program for approval an internal
control process to ensure that the monthly or semi-annual distribution report
forms contain accurate data and that adequate records are maintained; and
(2) Obtain
independent audits for years ending in an odd number.]"
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Deposit Beverage Container Program; Deposit Beverage Distributors; Redemption Centers; Internal Control Process; Independent Audits; Repeal
Description:
Requires only selected redemption centers to send monthly or semi-annual distribution reports and supporting records to the Deposit Beverage Container Program. Repeals the requirement that all deposit beverage distributors develop and submit an internal control process to the Deposit Beverage Container Program and obtain independent audits for years ending in an odd number.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.