Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Health, to which was referred H.B. No. 130 entitled:

begs leave to report as follows:

The purpose of this bill is to create a statewide licensure mechanism for retail tobacco sales to be administered by the liquor commissions that provides for:

Your Committee realizes that tobacco use is the leading cause of death and illness in Hawaii as well as the entire United States. Moreover, tobacco use among youth in Hawaii is rising with 28 percent of high school students reporting that they are regular smokers. The age of initiation for smoking is decreasing and is currently at the ten-year-old age group.

Your Committee also realizes that the supply of tobacco products available in Hawaii is easily obtainable by adolescents and that the sale of cigarettes to minors is common practice in our state.

Testimony in support of this measure was received from the Department of Health and the Coalition for a Tobacco Free Hawaii. The Hawaii Food Industry Association supports the concept of the measure but had concerns regarding the use of the liquor commissions as a regulatory agency for tobacco vendors.

The Honolulu Liquor Commission opposed the measure stating that more time for study was necessary on this issue. They also felt that until questions regarding the rules, regulations, and authority of the Liquor Commission regarding tobacco sales could be answered, the bill should be deferred.

The Department of Taxation also opposed this measure stating that requiring tobacco vendors and retailers to operate under both State and county regulatory agencies would create additional layers of bureaucracy and redundant expenses for the State and the counties.

Your Committee recognizes the concerns voiced by all of the interested parties and realizes that this measure is a work in progress. Accordingly, your Committee has amended the measure by, among other things:

As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 130, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 130, H.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.