HI HCR202

Urges the Department of Health to delay any increase to the non-refundable deposit beverage container fee (currently 1 cent) until the State Auditor completes an updated audit of the deposit beverage container recycling program.

Requests the Auditor conduct a comprehensive management and financial audit addressing concerns from the November 2005 audit, which found inadequate accounting systems and insufficient internal controls over the program's special fund.

Notes the program has collected approximately $400,000,000 in fees and deposits since 2002, with the Department paying more than $81,000,000 in handling fees and $19,000,000 in administrative expenses through fiscal year 2010, yet operating with minimal external oversight.

Identifies that the program pays out more per container than it collects (6 cents collected versus 7-9 cents paid), relying on unredeemed deposits to remain solvent, and that any fee increase would raise beverage prices by an additional $5,000,000 to $10,000,000 annually.

Requests the Auditor submit the updated audit to the Legislature at least 20 days before the 2013 Regular Session and thereafter submit biennial audits as required by statute.