THE SENATE

S.B. NO.

2497

TWENTY-SEVENTH LEGISLATURE, 2014

S.D. 2

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO TOBACCO REGULATION.

 

 

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

 


     SECTION 1.  The legislature finds that the public health rationale for the regulation of cigarettes and tobacco products is well developed, as tobacco use is the single most preventable cause of disease, disability, and death in the United States.  In addition to substantive laws in the State governing specific aspects of tobacco production, sales, and use, Hawaii law requires retailers, wholesalers, and dealers of cigarettes or tobacco products to obtain a special license or permit.  These licenses and permits facilitate the enforcement of the cigarette tax and tobacco tax law under chapter 245, Hawaii Revised Statutes.  However, the current license fee for wholesalers and dealers is only $2.50 a year, while the permit fee for retailers is only $20 a year.  To ensure continued tobacco regulation and enforcement of relevant tax laws, the legislature concludes that these fees should be increased.

     Accordingly, the purpose of this Act is to increase the:

     (1)  License fee for persons engaged as a wholesaler or dealer of cigarettes or tobacco products; and

     (2)  Retail tobacco permit fee for retailers engaged in the retail sale of cigarettes and other tobacco products.

     SECTION 2.  Section 245-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  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 the payment of a fee of [$2.50,] $           and shall be renewable annually on July 1 for the twelve months ending the succeeding June 30."

     SECTION 3.  Section 245-2.5, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  The retail tobacco permit shall be issued by the department upon application by the retailer, in the form and manner prescribed by the department, and the payment of a fee of [$20.] $          .  Permits shall be valid for one year, from December 1 to November 30, and renewable annually.  Whenever a retail tobacco permit is defaced, destroyed, or lost, or the permittee relocates the permittee's business, the department may issue a duplicate retail tobacco permit to the permittee for a fee of $5 per copy."

     SECTION 4.  Section 245-15, Hawaii Revised Statutes, is amended to read as follows:

     "§245-15  Disposition of revenues.  All moneys collected pursuant to this chapter shall be paid into the state treasury as state realizations to be kept and accounted for as provided by law; provided that all fees collected pursuant to sections 245-2(b) and 245-2.5(c) shall be deposited to the credit of the Hawaii tobacco prevention and control trust fund established pursuant to section 328L-5; and provided further that, of the moneys collected under the tax imposed pursuant to:

     (1)  Section 245-3(a)(5), after September 30, 2006, and prior to October 1, 2007, 1.0 cent per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

     (2)  Section 245-3(a)(6), after September 30, 2007, and prior to October 1, 2008:

         (A)  1.5 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

         (B)  0.25 cents per cigarette shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5; and

         (C)  0.25 cents per cigarette shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321-234;

     (3)  Section 245-3(a)(7), after September 30, 2008, and prior to July 1, 2009:

         (A)  2.0 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

         (B)  0.5 cents per cigarette shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5;

         (C)  0.25 cents per cigarette shall be deposited to the credit of the community health centers special fund established pursuant to section 321-1.65; and

         (D)  0.25 cents per cigarette shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321-234;

     (4)  Section 245-3(a)(8), after June 30, 2009, and prior to July 1, 2013:

         (A)  2.0 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

         (B)  0.75 cents per cigarette shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5;

         (C)  0.75 cents per cigarette shall be deposited to the credit of the community health centers special fund established pursuant to section 321-1.65; and

         (D)  0.5 cents per cigarette shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321-234; and

     (5)  Section 245-3(a)(11), after June 30, 2013, and thereafter:

         (A)  2.0 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

         (B)  1.5 cents per cigarette shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5;

         (C)  1.25 cents per cigarette shall be deposited to the credit of the community health centers special fund established pursuant to section 321-1.65; and

         (D)  1.25 cents per cigarette shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321-234.

The department shall provide an annual accounting of these dispositions to the legislature."

     SECTION 5.  Section 328L-5, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

     "(e)  The assets of the Hawaii tobacco prevention and control trust fund shall consist of:

     (1)  Moneys appropriated under section 328L-2(b)(3);

     (2)  Moneys appropriated to the Hawaii tobacco prevention and control trust fund by the state, county, or federal government;

     (3)  Moneys collected pursuant to section 245-15;

    [(3)] (4)  Private contributions of cash or property; and

    [(4)] (5)  Income and capital gains earned by the trust fund."

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on January 1, 2050.



 

Report Title:

Tobacco Regulation; License Fee; Retail Tobacco Permit; Cigarettes; Tobacco Products; Hawaii Tobacco Prevention and Control Trust Fund

 

Description:

Increases the license fee for persons engaged as a wholesaler or dealer of cigarettes or tobacco products.  Increases the retail tobacco permit fee for retailers engaged in the retail sale of cigarettes and other tobacco products.  Specifies that revenue from the license and permit fees shall be deposited into the Hawaii tobacco prevention and control trust fund.  Effective 01/01/2050.  (SD2)

 

 

 

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