STAND. COM. REP. NO. 2631

Honolulu, Hawaii

RE: S.B. No. 2301

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committees on Agriculture and Environment and Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2301 entitled:

"A BILL FOR AN ACT RELATING TO LITTER CONTROL,"

beg leave to report as follows:

The purpose and intent of this measure is to establish a cigarette litter abatement fee to be imposed on each cigarette sold in the State, the proceeds of which to be deposited into a cigarette litter abatement special fund to be used to cover the costs of collecting and removing cigarette litter and providing outreach and education to curb improper cigarette litter disposal.

Your Committees received testimony in support of this measure from the Hawai‘i Public Health Institute, Island Divers, and eleven individuals. Your Committees received testimony in opposition to this measure from the Hawaii Smokers Alliance and four individuals. Your Committees received comments on this measure from the Department of Budget and Finance, Department of Taxation, Department of Health, and Tax Foundation of Hawaii.

Your Committees find that cigarettes are the most littered item on earth, scattered along green spaces, sidewalks, roadsides, beaches, and waterways. Littered cigarette butts leach toxic chemicals, such as arsenic and lead, into the environment and can contaminate water and poison fish and animals that eat cigarette butts. Cigarette filters are made of plastic fibers called cellulose acetate that are not bio-degradable and may take up to five years to decompose. Your Committees also find that cleaning up cigarette butt litter is expensive, costing cities between $3,000,000 and $16,000,000 annually. This measure requires cigarette sellers to defray the costs of litter clean-up.

Your Committees have heard the testimony of the Department of Health suggesting that this measure be amended to reestablish positions in the defunct Litter Control Office and allow moneys from the fund to be expended on these positions. Your Committees find that this suggestion raises concerns that merit further consideration and requests that your Committee on Ways and Means further examine whether Litter Control Office positions should be reestablished.

Your Committees have amended this measure by:

(1) Replacing the cigarette litter abatement fee with a cigarette litter abatement excise tax to be deposited into the cigarette litter abatement special fund;

(2) Making the tax effective beginning July 1, 2021;

(3) Appropriating general funds into the cigarette litter abatement special fund; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Agriculture and Environment and Commerce, Consumer Protection, and Health that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2301, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2301, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Agriculture and Environment and Commerce, Consumer Protection, and Health,

________________________________ ROSALYN H. BAKER, Chair

________________________________ MIKE GABBARD, Chair