THE SENATE

S.B. NO.

2495

TWENTY-SEVENTH LEGISLATURE, 2014

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to electronic smoking devices.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that electronic smoking devices, also known as electronic cigarettes or e-cigarettes, are battery-powered devices, often resembling cigarettes, cigars, or pipes, designed to deliver nicotine or other substances to users in the form of a vapor smoke that is breathed in then exhaled.  Sales of electronic smoking devices in the United States have doubled each year since 2008, with sales in 2013 projected to reach $1,700,000,000.  Findings from the National Youth Tobacco Survey also indicate the growing popularity of electronic smoking devices among youth, with 1,800,000 middle and high school students stating they had tried these products in 2012.

     The legislature further finds that, due to the relative lack of research data on electronic smoking devices, many public health organizations and policymakers are concerned about the safety and impact of these products on public health.  Furthermore, because the federal government has not yet exercised its regulatory authority over electronic smoking devices, the products are manufactured without regulatory oversight or quality control, and promoted, advertised, and sold without appropriate health warnings or legal age restrictions.

     In response, a growing number of state and local governments have taken steps to regulate the sale, marketing, and use of electronic smoking devices.  The legislature concludes that Hawaii should also take additional steps to regulate these products.

     Accordingly, the purpose of this Act is to:

     (1)  Require persons engaged as wholesalers and dealers of electronic smoking devices to obtain a license from the department of health;

     (2)  Require retailers of electronic smoking devices to obtain a license from the department of health;

     (3)  Specify that electronic smoking devices may only be sold where cigarettes and other tobacco products are sold by limiting the retail sale of electronic smoking devices to those retailers who also hold a retail tobacco permit;

     (4)  Specify that the revenue from the electronic smoking device license fees shall be used to support smoking cessation programs in the State;

     (5)  Amend Hawaii's anti-smoking statute to prohibit the use of electronic smoking devices in places open to the public and places of employment; and

     (6)  Further clarify that the sale, distribution, or display of electronic smoking devices is restricted in the same manner as cigarettes and other tobacco products.

     SECTION 2.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"CHAPTER

ELECTRONIC SMOKING DEVICES

     §   ‑1  Definitions.  As used in this chapter:

     "Consumer" means a person who acquires or possesses an electronic smoking device for personal consumption and not for resale or distribution.

     "Dealer" means any person coming into the possession of electronic smoking devices that have not been acquired from a licensee under this chapter, or any person rendering a distribution service who buys and maintains, at the person's place of business, a stock of electronic smoking devices that have not been acquired from a licensee and who distributes or uses such electronic smoking devices.

     "Department" means the department of health.

     "Electronic smoking device" means any electronic product that can be used to simulate smoking in the delivery of nicotine or other substances to the person inhaling from the device, including but not limited to an electronic cigarette, electronic cigar, electronic cigarillo, or electronic pipe, and any cartridge or other component of the device or related product.

     "Entity" means one or more individuals, a company, corporation, a partnership, an association, or any other type of legal entity.

     "License" means a license granted under this chapter that authorizes the holder to engage in the business of a wholesaler, dealer, or retailer of electronic smoking devices in the State.

     "Licensee" means the holder of a license as a wholesaler, dealer, or retailer of electronic smoking devices granted under this chapter.

     "Person" means one or more people, a company, corporation, a partnership, or an association.

     "Retailer" means an entity that engages in the practice of selling electronic smoking devices to consumers.

     "Wholesaler" means a person rendering a distribution service who buys and maintains, at the person's place of business, a stock of electronic smoking devices that the person uses, possesses, or distributes only to retailers, or other wholesalers, or both.

     §   ‑2  License.  (a)  It shall be unlawful for any person to engage in the business of a wholesaler or dealer of electronic smoking devices in the State without having received first a license therefor issued by the department under this chapter; provided that this section shall not be construed to supersede any other law relating to licensing of persons in the same business.

     (b)  It shall be unlawful for any retailer engaged in the retail sale of electronic smoking devices to sell, possess, keep, acquire, distribute, or transport electronic smoking devices for retail sale unless a license has been issued to the retailer under this chapter and the license is in full force and effect.

     (c)  Any person or entity that operates as a retailer of cigarettes or tobacco products under section 245-2.5 shall acquire a separate license under this chapter to also sell electronic smoking devices to consumers at retail.

     (d)  Only those retailers with a retail tobacco permit obtained under section 245-2.5 may engage in the retail sale of electronic smoking devices under this chapter.

     (e)  The license shall be issued by the department upon application therefor, in such form and manner as shall be required by rule of the department, and payment of a fee of $          , and shall be renewable annually on July 1 for the twelve months ending the succeeding June 30.

     (f)  Revenue from the license fees collected under this section shall be used to support smoking cessation programs in the State.

     (g)  The department may suspend or, after hearing, revoke or decline to renew any license issued under this chapter whenever the department finds that the applicant or licensee has failed to comply with this chapter or any rule adopted under this chapter, or for any other good cause.  Good cause includes but is not limited to instances where an applicant or licensee has:

     (1)  Submitted a false or fraudulent application or provided a false statement in an application; or

     (2)  Possessed or displayed a false or fraudulent license.

Upon suspending or revoking any license, the department shall request that the licensee immediately surrender the license or any duplicate issued to the licensee and the licensee shall surrender the license or duplicate promptly to the department as requested.

     (h)  Whenever the department suspends, revokes, or declines to renew a license, the department shall notify the applicant or licensee immediately and afford the applicant or licensee a hearing, if requested and if a hearing has not already been afforded.  After the hearing, the department shall:

     (1)  Rescind its order of suspension;

     (2)  Continue the suspension;

     (3)  Revoke the license;

     (4)  Rescind its order of revocation;

     (5)  Decline to renew the license; or

     (6)  Renew the license."

     SECTION 3.  Section 328J-1, Hawaii Revised Statutes, is amended as follows:

     1.  By adding a new definition to be appropriately inserted and to read:

     ""Electronic smoking device" has the same meaning as in section 709-908."

     2.  By amending the definitions of "retail tobacco store" and "smoke" or "smoking" to read:

     ""Retail tobacco store" means a retail store used primarily for the sale of tobacco products and accessories[.] or electronic smoking devices.

     "Smoke" or "smoking" means inhaling or exhaling the fumes of tobacco or any other plant material, [or] burning or carrying any lighted smoking equipment for tobacco or any other plant material[.], or inhaling or exhaling of smoke or vapor from an electronic smoking device."

     SECTION 4.  Section 328J-16, Hawaii Revised Statutes, is amended as follows:

     1.  By amending the title and subsection (a) to read:

     "[[]§328J‑16[]]  Cigarette or electronic smoking device sales from vending machines and by lunch wagons prohibited.  (a)  The sale or distribution at no charge of cigarettes or electronic smoking devices by the following methods is prohibited:

     (1)  From cigarette vending machines unless the vending machine is located in a bar, cabaret, or any establishment for which the minimum age for admission is eighteen; or

     (2)  From a lunch wagon engaging in any sales activity within one thousand feet of any public or private elementary or secondary school grounds."

     2.  By amending subsection (c) to read:

     "(c)  As used in this section:

     "Cigarette vending machine" means a self-service device that dispenses cigarettes, cigars, tobacco, [or] any other product containing tobacco[.], or electronic smoking devices.

     "Lunch wagon" means a mobile vehicle designed and constructed to transport food and from which food is sold to the general public and includes but is not limited to manapua trucks.

     "Sell" or "sale" means to solicit and receive an order for; to have, keep, offer, or expose for sale; to deliver for value or in any other manner than purely gratuitously; to peddle; to keep with intent to sell; or to traffic in."

     SECTION 5.  Section 328J-17, Hawaii Revised Statutes, is amended by amending the title and subsections (a) to (c) to read as follows:

     "[[]§328J‑17[]]  Distribution of sample cigarette or tobacco products[,] or electronic smoking devices; cigarette [or], tobacco, or electronic smoking device promotional materials[,]; and coupons redeemable for cigarette [or], tobacco, or electronic smoking device products or promotional materials.  (a)  It is unlawful for any person to distribute samples of cigarette or tobacco products[,] or electronic smoking devices, or coupons redeemable for cigarette or tobacco products[,] or electronic smoking devices, in or on any public street, sidewalk, or park, or within one thousand feet of any elementary, middle or intermediate, or high school.

     (b)  It is unlawful for any person to distribute cigarette [or], tobacco, or electronic smoking device promotional materials, or coupons redeemable for cigarette [or], tobacco, or electronic smoking device promotional materials, within one thousand feet of any elementary, middle or intermediate, or high school.

     (c)  This section shall not apply:

     (1)  Within private commercial establishments, such as stores and restaurants, where tobacco products or electronic smoking devices are sold, as long as distribution is not visible to the public from outside the establishment; or

     (2)  To commercial establishments where access to the premises by persons under eighteen years of age is prohibited by law."

     SECTION 6.  Section 328J-18, Hawaii Revised Statutes, is amended by amending the title and subsection (a) to read as follows:

     "[[]§328J-18[]]  Placement of cigarettes [and], tobacco products[.], and electronic smoking devices.  (a)  Except as otherwise provided under this section, a retailer may sell cigarettes, smokeless tobacco, [and] all other tobacco products, and electronic smoking devices only in a direct, face-to-face exchange between the retailer and the consumer.  Examples of methods of sale that are not permitted include vending machines and self-service displays."

     SECTION 7.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 8.  This Act shall take effect on July 1, 2014.

 

INTRODUCED BY:

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Report Title:

Electronic Smoking Device; License; Smoking; Cigarettes; Tobacco Products; Restrictions; Ban; Permit

 

Description:

Requires persons engaged as wholesalers and dealers of electronic smoking devices and retailers of electronic smoking devices to obtain a license from the department of health.  Limits the retail sale of electronic smoking devices to those retailers who also hold a retail tobacco permit.  Specifies that the revenue from electronic smoking device license fees shall be used to support smoking cessation programs in the State.  Amends Hawaii's anti-smoking statute to prohibit the use of electronic smoking devices in places open to the public and places of employment.  Clarifies that the sale, distribution, or display of electronic smoking devices is restricted in the same manner as cigarettes and other tobacco products.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.