STAND. COM. REP. NO. 681
RE: S.B. No. 1032
Honorable Donna Mercado Kim
President of the Senate
Twenty-Eighth State Legislature
Regular Session of 2015
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 1032, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO CHAPTER 245, HAWAII REVISED STATUTES,"
begs leave to report as follows:
The purpose and intent of this measure is to strengthen the cigarette tax and tobacco tax law.
Specifically, the measure:
(1) Expands the definition of "tobacco products" to include products that do not contain tobacco, but contain nicotine;
(2) Increases the license fees of cigarette and tobacco product wholesalers and dealers; and
(3) Increases the retail tobacco permit fees of retailers.
Your Committee received written comments in support of this measure from the Department of Health, the University of Hawaii Cancer Center, the American Cancer Society Cancer Action Network, the American Heart Association, the Coalition for a Tobacco Free Hawaii, and one individual. Written comments in opposition to this measure were received from the Hawaii Cigar Association, the Hawaii Food Industry Association, Kauai Cigar Company, PC Gamerz, Volcano Fine Electronic Cigarettes, and eight individuals. Written comments on the measure were received from the Department of Taxation.
Your Committee finds that the license and retail tobacco permit fees have remained unchanged since 1995, despite high tobacco taxes and ever-increasing tobacco industry expenditures in marketing and advertising. Tobacco licensing is an effective tool for limiting the negative public health consequences of tobacco use and for ensuring that wholesalers and retailers follow responsible sales practices.
Your Committee has amended this measure by:
(1) Changing the license and permit fees to unspecified amounts; and
(2) Changing the effective date to July 1, 2053, to facilitate further discussion on the measure.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1032, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1032, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
JILL N. TOKUDA, Chair