THE SENATE	S.B. NO.	2497
TWENTY-SEVENTH LEGISLATURE, 2014		S.D. 1
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 retail tobacco permit fees cost 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,] $250, and shall be renewable annually on July 1 for the twelve months ending the succeeding June 30.  Revenue from the license fees collected under this subsection shall be used to support smoking cessation programs in the State."

     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.] $50.  Permits shall be valid for one year, from December 1 to November 30, and renewable annually.  Revenue from the permit fees collected under this subsection shall be used to support smoking cessation programs in the State.  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.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

Report Title:

Tobacco Regulation; License Fee; Retail Tobacco Permit; Cigarettes; Tobacco Products; Smoking Cessation Programs

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 used to support smoking cessation programs in the State.  (SD1)

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