2021-08-25 EMC agenda item 5-b(1) - HB1316_TESTIMONY_EEP_02-09-21_

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TESTIMONY OF TINA YAMAKI, PRESIDENT RETAIL MERCHANTS OF HAWAII February 9, 2021 Re: HB 1316 Relating to Packaging Waste Good morning Chairperson Lowen and members of the House Committee on Energy & Environmental Protection. I am Tina Yamaki, President of the Retail Merchants of Hawaii and I appreciate this opportunity to testify. The Retail Merchants of Hawaii was founded in 1901, RMH is a statewide, not for profit trade organization committed to the growth and development of the retail industry in Hawaii. Our membership represents small mom & pop stores, large box stores, resellers, luxury retail, department stores, shopping malls, local, national, and international retailers, chains, and everyone in between. We are STRONGLY OPPOSED to HB 1316 Relating to Packing Waste. This measure requires producers of packaging waste be responsible for the end-of-life management of their products in a way that ensures minimal social and environmental impacts; and allows the department of health to administratively impose civil penalties. Establishes the waste and litter management special fund. Retailers continue to be concerned about our aina and have supported many initiatives that preserve and protect our environment. We must note that most of the plastic pollution in and around our islands are not locally produced. It comes from other national and international locations and is carried to our islands by the ocean currents. Packaging over the years have been changing. Manufacturers are using materials that are safer for the environment. However, we must also note that while packing materials are evolving due to technological advancements, there are currently no safe alternatives for others. Manufacturers and retailers want to be sure the items that are purchased are damage free when the customer receives them. While most general commercial trash is disposed of at H-POWER on Oahu, it is also our understanding that there are no composting facilities in the state. The state should ensure that the infrastructure is in place before considering legislation like this. Furthermore, to the best of our knowledge, our industries were not part of the discussion surrounding this measure and the impacts it has on our operations. This measure creates an unreasonable burden and have a significant cost increase on the operations of many manufacturers and retailers. According to this measure, the sole burden would be placed on manufacturers and retailers. Retailers would have to submit annual report on their producers and brands, weight, material by category, quantity of products, post-consumer recycled content to name a few. This would be an unfair practice and one that is an awfully expensive one to implement as additional staff may have to be hired. We also want to point out that since last March, many retailers were forced to lay-off staff. While some have returned to work, others have not been called back and many stores are short staffed. Furthermore, retailers have also taken pay cuts and streamline their operations to keep their doors open and their employees employed. We also feel that it isunreasonable for retailers and manufactures to be mandated to pick up the total cost of the entire collection and recycling system, including infrastructure investments, the cost of meeting convenience standards, and other requirements. The true cost to retailers annual payment. This added cost is something our struggling industry cannot afford. Retail has been one of the hardest hit industries in the state due to the pandemic. We just cannot afford anymore operational cost increases. For many retailers, they have seen a 70% decrease in their revenue in 2020 and are operating at 50% capacity (this includes the total number of customers and employees in the store at any given time. The cost incurred with measurers like this would be passed on to the customer and businesses especially the smaller local businesses who will not be able to absorb this additional cost. As a result, the cost of living in Hawaii will increase and customers will turn to other online vendors who do not have Hawaii ties. More stores will close and more of our friends, family and neighbors will no longer be employed. Yet every week we see more and more retailers shutting their doors for good because they can no longer afford to do business in Hawaii. We ask that you hold this bill to help businesses recover and survive the affect this pandemic is having on our industry. Mahalo again for this opportunity to testify. 3610 Waialae Ave Honolulu, HI 96816 (808) 592-4200 tyamaki@rmhawaii.org