Risk-based selection process; audit
HRS §342G-121.5
in effect342G-121.5. Risk-based selection process; audit
(a) The department shall develop a risk-based process to select, for periodic audit, certain deposit beverage distributor and redemption center reports submitted to the deposit beverage container program. The department may hire personnel or external consultants to perform the audits. In developing a risk-based process to audit certain deposit beverage distributor and redemption center reports, the department shall:
(1) Consider a variety of risk factors, including but
not limited to 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 or semi-annual distribution reports and supporting records, such as
schedules of invoices, shipping documents, point-of-sale reports, and other
documentation as required by the department, to the deposit beverage container
program; 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 carrying out
analytics and trend analyses to target certain deposit beverage distributors
and redemption centers having unusual fluctuations.
(b) The department shall:
(1) Summarize the results of the deposit beverage
distributor and redemption center audits and assess whether enforcement actions
should be considered to ensure that the amounts that are being reported are
accurate;
(2) Consider conducting follow-up audits; and
(3) Consider publicly announcing violations.
(c) All deposit beverage distributors shall:
(1) Develop and submit to the deposit beverage
container program for approval an internal control process to ensure that the
monthly or semi-annual distribution report forms contain accurate data and that
adequate records are maintained; and
(2) Obtain independent audits for years ending in an
odd number.
[L 2022, c 12, §2]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol06_Ch0321-0344/HRS0342G/HRS_0342G-0121_0005.htmFetched: 11/10/2026