STAND. COM. REP. NO. 815

Honolulu, Hawaii

, 2021

RE: H.B. No. 598

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 598, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TOBACCO PRODUCTS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish the offense of unlawful shipment of tobacco products;

(2) Increase the license fee for persons engaged as a wholesaler or dealer of cigarettes and tobacco products;

(3) Increase the retail tobacco permit fee for retailers engaged in the retail sale of cigarettes and tobacco products;

(4) Allocate a portion of funds collected from excise taxes on tobacco products to health education and prevention programs concerning the risks and dangers of the use of electronic smoking devices for youth; and

(5) Repeal various statutory provisions relating to electronic smoking devices.

Your Committee received testimony in support of this measure from the Hawaii Dental Association, Hawaii Substance Abuse Coalition, Blue Zones Project, and two individuals. Your Committee received testimony in opposition to this measure from the Retail Merchants of Hawaii, American Vaping Association, VOLCANO Vape Shops, Hawaii Smokers Alliance, Namaste Vapors, Americans for Tax Reform, and numerous individuals. Your Committee received comments on this measure from the Department of Taxation, Department of Health, Department of the Attorney General, American Heart Association, Hawaii State Teachers Association, Hawaii Food Industry Association, Tax Foundation of Hawaii, AlohaCare, Coalition for a Tobacco-Free Hawai‘i, American Cancer Society Cancer Action Network, American Lung Association in Hawaii, Hawaii Petroleum Marketers Association, and eleven individuals.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 598, H.D. 2, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair