Hawaii 2022 Regular Session

Hawaii Senate Bill SB2739 Compare Versions

Only one version of the bill is available at this time.

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1	1	THE SENATE S.B. NO. 2739 THIRTY-FIRST LEGISLATURE, 2022 STATE OF HAWAII A BILL FOR AN ACT relating to deposit beverage container program. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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3	3	THE SENATE S.B. NO. 2739
4	4	THIRTY-FIRST LEGISLATURE, 2022
5	5	STATE OF HAWAII
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7	7	THE SENATE
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9	9	S.B. NO.
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13	13	THIRTY-FIRST LEGISLATURE, 2022
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17	17	STATE OF HAWAII
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31	31	A BILL FOR AN ACT
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37	37	relating to deposit beverage container program.
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43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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47	47	SECTION 1. The legislature finds that an audit was conducted pursuant to section 342G-107, Hawaii Revised Statutes, which requires the office of the auditor to conduct a management and financial audit of the deposit beverage container program and deposit beverage container deposit special fund in fiscal years ending in even-numbered years, after the initial audit for the fiscal year ended June 30, 2005. The eighth biennial financial and program audit of the department of health's deposit beverage container program and the deposit beverage container deposit special fund was recently completed. The legislature established the program to address a need to expand participation in recycling programs and to minimize the cost to those participating. Audit efforts were redirected in the most recent review to ascertain the department of health's efforts to address long-standing findings. The purpose of this Act is to mandate the department of health to adopt and implement the recommendations made by the auditor. SECTION 2. (a) As used in this section, "program" means the deposit beverage container program established under chapter 342G, Hawaii Revised Statutes. (b) The department of health shall: (1) Establish clear, measurable objectives for the program that state what is to be achieved by program management and set timelines for completion. The objectives shall include a detailed action plan as well as policies and procedures to address the audit findings reported in prior audit reports, including reports numbered 19-08, 17-02, and 15-02. The department of health shall update and revise the objectives as appropriate; (2) Establish internal controls, including policies and procedures, to ensure that program management addresses issues reported in prior audit reports and manages the program appropriately. Internal controls shall be designed to provide the department of health with reasonable assurance that the program is achieving its statutory purpose and administered effectively and efficiently as well as meeting any objectives established by the department of health; (3) Develop a specific, measurable, achievable, realistic, and timely action plan that details the specific measures that address the findings reported in audit reports numbered 19-08, 17-02, and 15-02 and identifies additional resources that may be required. At a minimum, the action plan shall include: (A) A risk-based process to select distributor and redemption center reports submitted to the program to audit on a periodic basis; (B) A requirement for distributors to periodically submit records that support the information contained in the monthly distribution report form, such as schedule invoices, shipping documents, and point-of-sale records; and (C) A process to consider and initiate administrative enforcement actions as appropriate; (4) Develop a risk-based process to select and require certain distributors to develop and submit to the program for approval an internal control process to provide reasonable assurance that the information self-reported on the monthly distribution report form is accurate and that the distributor maintains sufficient and appropriate records to support the reported information; (5) Develop policies and procedures to direct and guide staff in their respective program responsibilities. The policies and procedures shall be documented and updated, as necessary; (6) Retain the services of a third party to administer the program, as authorized under 342G-106, Hawaii Revised Statutes, if the program does not have sufficient staff or expertise to actively oversee its activities and implement the audit recommendations; (7) Develop policies and procedures to annually reconcile the weight of the materials redeemed for every redemption center for which the program reimbursed the container deposit and paid the handling fee with the weight ticket or tickets for each material type generated by the certified recycling facility; and (8) Develop an electronic reporting system that requires distributors and redemption centers to input information directly into a centralized database. SECTION 3. The department of health shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2023. SECTION 4. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________
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49	49	SECTION 1. The legislature finds that an audit was conducted pursuant to section 342G-107, Hawaii Revised Statutes, which requires the office of the auditor to conduct a management and financial audit of the deposit beverage container program and deposit beverage container deposit special fund in fiscal years ending in even-numbered years, after the initial audit for the fiscal year ended June 30, 2005. The eighth biennial financial and program audit of the department of health's deposit beverage container program and the deposit beverage container deposit special fund was recently completed. The legislature established the program to address a need to expand participation in recycling programs and to minimize the cost to those participating. Audit efforts were redirected in the most recent review to ascertain the department of health's efforts to address long-standing findings.
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51	51	The purpose of this Act is to mandate the department of health to adopt and implement the recommendations made by the auditor.
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53	53	SECTION 2. (a) As used in this section, "program" means the deposit beverage container program established under chapter 342G, Hawaii Revised Statutes.
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55	55	(b) The department of health shall:
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57	57	(1) Establish clear, measurable objectives for the program that state what is to be achieved by program management and set timelines for completion. The objectives shall include a detailed action plan as well as policies and procedures to address the audit findings reported in prior audit reports, including reports numbered 19-08, 17-02, and 15-02. The department of health shall update and revise the objectives as appropriate;
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59	59	(2) Establish internal controls, including policies and procedures, to ensure that program management addresses issues reported in prior audit reports and manages the program appropriately. Internal controls shall be designed to provide the department of health with reasonable assurance that the program is achieving its statutory purpose and administered effectively and efficiently as well as meeting any objectives established by the department of health;
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61	61	(3) Develop a specific, measurable, achievable, realistic, and timely action plan that details the specific measures that address the findings reported in audit reports numbered 19-08, 17-02, and 15-02 and identifies additional resources that may be required. At a minimum, the action plan shall include:
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63	63	(A) A risk-based process to select distributor and redemption center reports submitted to the program to audit on a periodic basis;
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65	65	(B) A requirement for distributors to periodically submit records that support the information contained in the monthly distribution report form, such as schedule invoices, shipping documents, and point-of-sale records; and
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67	67	(C) A process to consider and initiate administrative enforcement actions as appropriate;
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69	69	(4) Develop a risk-based process to select and require certain distributors to develop and submit to the program for approval an internal control process to provide reasonable assurance that the information self-reported on the monthly distribution report form is accurate and that the distributor maintains sufficient and appropriate records to support the reported information;
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71	71	(5) Develop policies and procedures to direct and guide staff in their respective program responsibilities. The policies and procedures shall be documented and updated, as necessary;
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73	73	(6) Retain the services of a third party to administer the program, as authorized under 342G-106, Hawaii Revised Statutes, if the program does not have sufficient staff or expertise to actively oversee its activities and implement the audit recommendations;
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75	75	(7) Develop policies and procedures to annually reconcile the weight of the materials redeemed for every redemption center for which the program reimbursed the container deposit and paid the handling fee with the weight ticket or tickets for each material type generated by the certified recycling facility; and
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77	77	(8) Develop an electronic reporting system that requires distributors and redemption centers to input information directly into a centralized database.
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79	79	SECTION 3. The department of health shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2023.
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81	81	SECTION 4. This Act shall take effect upon its approval.
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85	85	INTRODUCED BY: _____________________________
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87	87	INTRODUCED BY:
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95	95	Report Title: Deposit Beverage Container Program; Audit Description: Requires the Department of Health to implement recommendations made by the Office of the Auditor regarding the deposit beverage container program, including developing a risk-based selection process to select reports submitted by distributors and redemption centers for audit. Requires the Department of Health to report on its implementation of the recommendations to the Legislature. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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101	101	Report Title:
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103	103	Deposit Beverage Container Program; Audit
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107	107	Description:
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109	109	Requires the Department of Health to implement recommendations made by the Office of the Auditor regarding the deposit beverage container program, including developing a risk-based selection process to select reports submitted by distributors and redemption centers for audit. Requires the Department of Health to report on its implementation of the recommendations to the Legislature.
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117	117	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.