HOUSE OF REPRESENTATIVES

H.R. NO.

185

TWENTY-SEVENTH LEGISLATURE, 2013

 

STATE OF HAWAII

 

 

 

 

 


HOUSE RESOLUTION

 

 

supporting the phase out of the deposit beverage container recycling program to establish an expanded statewide curbside recycling program.

 

 

 


     WHEREAS, Act 176, Session Laws of Hawaii 2002, established the deposit beverage container recycling program ("Program"), to encourage recycling, reduce litter, and provide a nexus between manufacturing decisions and recycling program management; and

 

     WHEREAS, the Program initially placed a five cent refundable deposit fee and one cent nonrefundable container fee on each deposit beverage container sold; and

 

     WHEREAS, the Department of Health administers the Program and collects the deposit and container fees in the Program special fund; and

 

     WHEREAS, moneys in the Program special fund are used to reimburse refund values to participating consumers and pay handling fees to redemption centers; and

 

     WHEREAS, the Department of Health utilizes the Program special fund, in part, to finance its Program administrative and compliance duties and Program educational and promotional activities; and

 

     WHEREAS, section 342G-107, Hawaii Revised Statutes, requires the Auditor to conduct a management and financial audit of the program for fiscal years 2004-2005 and 2005-2006, and for each fiscal year thereafter in an even-numbered year and to submit the audit report, including the amount of unredeemed refund value and recommendations, to the Legislature and Department of Health no later than twenty days prior to the convening of the next regular session; and

 

     WHEREAS, the November 2005 Program audit found that the Department of Health failed to establish a proper accounting system and concluded that the Program can only succeed with greater administrative management by the Department of Health; and

 

     WHEREAS, the November 2005 Program audit further concluded that the intended environmental benefits of the Program have been lost in the inefficient redemption process; and

 

     WHEREAS, the November 2005 Program audit recommended that the Department of Health provide greater administrative oversight and implement financial controls; and

 

     WHEREAS, the Auditor has not submitted audit reports since November 2005, and consequently, the Legislature has not received audits for fiscal years 2006-2007, 2008-2009, and 2010-2011; and

 

     WHEREAS, there has been no subsequent management and financial audit to show the Department of Health has implemented the November 2005 Program audit recommendations; and

 

     WHEREAS, the Department of Health's Program report to the 2010 Legislature and its solid waste management report to the 2011 Legislature collectively indicate that from October 2002 through fiscal year 2010, the Department expended more money from the Program special fund than it collected;

 

     WHEREAS, despite the Department of Health's efforts to improve the program and its management of the Program special fund, the Department increased the nonrefundable container fee from one cent to 1.5 cents on each deposit beverage container sold because, according to the Department, the Program is losing more money than it collects; and

 

     WHEREAS, in light of the Auditor's November 2005 findings of an inadequate financial accounting system and lack of internal controls, and given the significant losses incurred by the Program, the Department of Health's reports to the Legislature fail to show the Program is feasible; and

 

     WHEREAS, the Department of Health's recent increase of the nonrefundable container fee from one cent to 1.5 cents on each deposit beverage container sold remains inadequate to cover the two to four cent handling fee on each deposit beverage container paid to redemption centers; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Twenty-seventh Legislature of the State of Hawaii, Regular Session of 2013, that it supports a phase out of the Program; and

 

     BE IT FURTHER RESOLVED that the Legislature supports a statewide expanded curbside recycling program to increase public participation and reduce litter; and

 

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor, the Director of Health, and the Mayors of each county within the State. 

 

 

 

 

 

 

OFFERED BY:

_____________________________

 

 

Report Title: 

Deposit Beverage Container Recycling Program; Phase Out.