Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2841, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to require every person or entity that sells cigarettes or other tobacco products to consumers to hold a retail tobacco permit.

Specifically, the bill requires all retailers to obtain a retail tobacco permit beginning July 1, 2005, and provides that it shall be unlawful for a retailer to sell cigarettes or other tobacco products, effective October 1, 2005, without a retail tobacco permit in full force and effect.

In addition, the bill:

Your Committee finds that Hawaii's current cigarette tax and tobacco tax licensing law applies only to wholesalers or dealers, not to retail sellers, while forty states have some form of retail tobacco permit requirement. Your Committee believes that the retail tobacco permit requirement will assist law enforcement in halting illegal sales of cigarettes. Reducing illegal sales of cigarettes or other tobacco products will not only benefit legal retailers, but also is likely to reduce illegal sales to minors.

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. 2841, S.D. 1, and recommends that it pass Third Reading.