SB2301

SECTION 1. Chapter 245, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

"§245- Cigarette litter abatement fee. (a) In addition to any tax established by law, each wholesaler or dealer shall pay a cigarette litter abatement fee equal to $ for each cigarette sold, used, or possessed by a wholesaler or dealer on and after July 1, 2020, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer. The fee shall be applied through the use of stamps.

(b) When the fee imposed has been paid on cigarettes that thereafter become the subject of a casualty loss deduction allowable under chapter 235, the fee paid shall be refunded or credited to the account of the wholesaler or dealer.

(d) All moneys collected pursuant to this section shall be deposited into the cigarette litter abatement special fund established pursuant to section 339- ."

SECTION 2. Chapter 339, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

"§339- Cigarette litter abatement special fund; established. (a) There is established the cigarette litter abatement special fund, into which shall be deposited:

(1) Moneys collected from the cigarette litter abatement fee established by section 245- ;

(2) Legislative appropriations; and

(3) Gifts, donations, and grants from public agencies and private persons.

(b) All interest earned or accrued on moneys deposited in the cigarette litter abatement special fund shall become part of the fund. The fund shall be administered and expended by the department of health for the purposes described in subsection (c).

(1) To refund any overpayment of the cigarette litter abatement fee;

(2) On outreach and education to curb improper cigarette litter disposal;

(3) For costs to collect and remove cigarette litter from public lands and public spaces; and

(4) To reimburse a county for costs that county incurs from collecting and removing cigarette litter on public lands and public spaces within its control, pursuant to rules adopted by the department pursuant to section 339-2(a)."

SECTION 3. Section 245-15, Hawaii Revised Statutes, is amended to read as follows:

"§245-15 Disposition of revenues. All moneys collected pursuant to this chapter, except the cigarette litter abatement fee established by section 245- , shall be paid into the state treasury as state realizations to be kept and accounted for as provided by law; provided that, of the moneys collected under the tax imposed pursuant to:

(1) Section 245-3(a)(5), after September 30, 2006, and prior to October 1, 2007, 1.0 cent per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

(2) Section 245-3(a)(6), after September 30, 2007, and prior to October 1, 2008:

(A) 1.5 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

(B) 0.25 cents per cigarette shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5; and

(C) 0.25 cents per cigarette shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321‑234;

(3) Section 245-3(a)(7), after September 30, 2008, and prior to July 1, 2009:

(A) 2.0 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

(B) 0.5 cents per cigarette shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5;

(C) 0.25 cents per cigarette shall be deposited to the credit of the community health centers special fund established pursuant to section 321‑1.65; and

(D) 0.25 cents per cigarette shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321‑234;

(4) Section 245-3(a)(8), after June 30, 2009, and prior to July 1, 2013:

(B) 0.75 cents per cigarette shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5;

(C) 0.75 cents per cigarette shall be deposited to the credit of the community health centers special fund established pursuant to section 321‑1.65; and

(D) 0.5 cents per cigarette shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321-234;

(5) Section 245-3(a)(11), after June 30, 2013, and prior to July 1, 2015:

(B) 1.5 cents per cigarette shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5;

(C) 1.25 cents per cigarette shall be deposited to the credit of the community health centers special fund established pursuant to section 321‑1.65; and

(D) 1.25 cents per cigarette shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321‑234; and

(6) Section 245-3(a)(11), after June 30, 2015, and thereafter:

(B) 1.125 cents per cigarette, but not more than $7,400,000 in a fiscal year, shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5;

(C) 1.25 cents per cigarette, but not more than $8,800,000 in a fiscal year, shall be deposited to the credit of the community health centers special fund established pursuant to section 321‑1.65; and

(D) 1.25 cents per cigarette, but not more than $8,800,000 in a fiscal year, shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321‑234.

The department shall provide an annual accounting of these dispositions to the legislature."

SECTION 4. There is appropriated out of the cigarette litter abatement special fund the sum of $ or so much thereof as may be necessary for fiscal year 2020-2021 for the purposes described in section 339- , Hawaii Revised Statutes.

The sum appropriated shall be expended by the department of health for the purposes of this Act.

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2020.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2301
THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII