Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Health and Human Services, to which was referred H.B. No. 2741, H.D. 2, entitled:

begs leave to report as follows:

The purpose of this measure is to discourage cigarette smoking by raising the cigarette excise tax from five cents to six cents for each cigarette.

Your Committee received testimony in support of this measure from the American Heart Association, Hawaii Medical Association, Waianae Coast Comprehensive Health Center, American Lung Association of Hawaii, American Cancer Society, Neighbor Island Coalition Coordinator, Na Lei Wili Area Health Education, Coalition For A Tobacco Free Hawaii, and one individual. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii, as well as testimony opposing this measure from the Hawaii Food Industry Association and four individuals.

Your Committee finds that it is well accepted that cigarette smoking is a public health hazard that claims the lives of thousands and costs the country billions of dollars each year. To combat the recruitment of new smokers, it is important to reduce youth smoking. Your Committee believes that a tax increase weakens the purchasing power of minors to purchase cigarettes, thus reducing consumption by minors.

Upon further consideration, your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2741, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2741, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.