Informing the Legislature that on June 25, 2026, the Governor signed the following bill into law: SB3138 SD1 HD1 CD1 (ACT 158).

This bill amends Hawaii's deposit beverage container program to reduce the financial burden of mandatory independent audits on small businesses. It establishes a tiered audit system where only distributors handling at least five million containers annually are required to undergo an independent audit, while those managing fewer than five million are exempt. Additionally, the law requires the Department of Health to develop a risk-based process for selecting specific distributors and redemption centers for periodic audits based on factors like transaction volume and past findings. These changes aim to balance the need for financial accountability with the economic realities faced by smaller operators in the beverage distribution industry.