Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 842
                                     H.D. 1

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Energy and Environmental Protection, to
which was referred H.B. No. 842 entitled: 


begs leave to report as follows:

     The purpose of this bill is to assist local food processors
who sell their products in small glass containers to tourists and
food service companies.  This bill exempts glass containers that
hold not more than two fluid ounces of food from the advance
disposal fee.

     The Hawaii Food Industry Association testified in support of
this measure.  The Department of Health also supported the
measure with certain amendments.

     Although the glass container recovery law was designed to be
easy to monitor and simple to understand, it also penalizes those
using small glass containers.  The advance disposal fee is 1.5
cents per unit.  The law does not distinguish between a large
bottle of wine or a small glass container.  As a result, the
advanced disposal fee becomes a major cost of production for
those who utilize small glass containers, especially when the
cost of the product is low.

     Your Committee finds that local food processors actually use
glass containers with a capacity of 2.5 ounces for fruit
preserves which are exported in gift packs or baskets.  The

                                 STAND. COM. REP. NO. 461
                                 Page 2

standard sizes of small glass containers are 1.5 ounces, 2.5
ounces, and 7 ounces.

     In order to assist these local food processors, your
Committee has amended this bill by exempting empty, imported
glass containers with a capacity of not more than 2.5 ounces.
Section 342G-85(b), Hawaii Revised Statutes, was also amended to
correct the amount of the advanced disposal fee which should be
1.5 cents instead of .015 cents. 

     As affirmed by the record of votes of the members of your
Committee on Energy and Environmental Protection that is attached
to this report, your Committee is in accord with the intent and
purpose of H.B. No. 842, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
842, H.D. 1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Energy and
                                   Environmental Protection,

                                   HERMINA M. MORITA, Chair