THE SENATE

S.B. NO.

180

THIRTY-FIRST LEGISLATURE, 2021

S.D. 1

STATE OF HAWAII

H.D. 1

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO DEPOSIT BEVERAGE CONTAINERS.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


SECTION 1. Chapter 342G, Hawaii Revised Statutes, is amended by adding a new section to part VIII to be appropriately designated and to read as follows:

"342G-   Risk-based selection process; audit. (a) The department shall develop a risk-based process to select deposit beverage distributor and redemption center reports submitted to the deposit beverage container program for periodic audit. The department may hire personnel or external consultants to perform audits. In developing a risk-based process to monitor deposit beverage distributors and redemption centers, the department shall:

(1) Consider a variety of risk factors, including the amount of money transacted, prior audit findings, and frequency of the deposit beverage distributor's or redemption center's prior audits;

(2) Require deposit beverage distributors to send monthly distribution reports and supporting records, such as schedule of invoices, shipping documents, and point-of-sale reports, to the deposit beverage container program on a periodic basis; 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 performing analytics and trend analyses to target certain deposit beverage distributors and redemption centers with unusual fluctuations.

(b) The department shall:

(1) Summarize the results of deposit beverage distributor and redemption center audits and assess whether enforcement actions should be considered to ensure amounts that are being reported are appropriate;

(2) Consider conducting follow-up audits; and

(3) Consider public announcements of violations.

(c) All deposit beverage distributors shall:

(1) Develop and submit to the program for approval an internal control process to ensure that accurate data is entered on the monthly distribution report and adequate records are maintained; and

(2) Obtain independent audits for years ending in an odd number."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2050.



 

Report Title:

Deposit Beverage Container Program; Auditor Recommendations; Risk-based Selection Process; Distributors; Redemption Centers

 

Description:

Requires 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. Effective 7/1/2050. (HD1)

 

 

 

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