STAND. COM. REP. NO. 1176

Honolulu, Hawaii

RE: H.B. No. 826

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committees on Health and Commerce and Consumer Protection, to which was referred H.B. No. 826, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO ELECTRONIC SMOKING DEVICES,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Expand the purposes for which moneys in the tobacco enforcement special fund may be used to include all functions of the Department of the Attorney General;

(2) Rename the Electronic Smoking Device Retailer Registration Unit to the Electronic Smoking Device Retailer Registration and Enforcement Unit;

(3) Expand the scope of the Unit to include enforcement of compliance of electronic smoking devices with the Federal Food, Drug, and Cosmetic Act;

(4) Establish the electronic smoking device retailer registration and enforcement unit special fund for moneys received from enforcement actions; and

(5) Amend the fine amount for persons under twenty-one years of age who purchase or possess tobacco products or electronic smoking devices.

Your Committees received testimony in opposition to this measure from the Department of the Attorney General, Department of Health, Hawaii State Teachers Association, American Heart Association, Hawai‘i Public Health Institute, American Cancer Society Cancer Action Network, American Vaping Association, Black Lava Vape, Hawaii COPD Coalition, Hawai‘i Primary Care Association, Irie Hawaii, Smoke-Free Alternatives Trade Association, AlohaCare, Hawaii Smokers Alliance, Volcano Vape Shops, and thirty individuals. Your Committees received comments on this measure from the Department of Budget and Finance.

Your Committees find that the introduction of flavored e‑cigarettes, electronic smoking devices, and other electronic nicotine delivery systems into the marketplace has had a negative impact on Hawaii's youth. Your Committees further find that the Department of the Attorney General requires funding to better regulate and ensure the removal of unsafe, noncertified electronic nicotine delivery systems from the marketplace. This measure provides the Department of the Attorney General with additional funding to expand its electronic smoking device regulatory arm.

Your Committees heard a significant amount of testimony from many stakeholders opposing any increase in the fines levied against persons under twenty-one years of age who purchase or possess tobacco products or electronic smoking devices. The testimony in opposition explained that punishment, such as the fine in this measure, is not an optimal strategy for behavior change and that the fine disproportionately affects low-income communities, youth of color, LGBT youth, youth with disabilities, and boys.

Therefore, your Committees have amended this measure by:

(1) Removing the proposed amendments to section 712-1258, Hawaii Revised Statutes, in section 6 of this measure with respect to youth fines;

(2) Inserting, section 3 of S.B. No. 1147, S.D. 2, Legislative Session 2021, which makes unlawful the sale of flavored tobacco products, mislabeling of e-liquid products containing nicotine, and sale of tobacco products other than through retail sales via in-person exchange;

(3) Inserting into this measure, section 4 of S.B. No. 1147, S.D. 2, Legislative Session 2021, which includes e-liquid and electronic smoking devices within the definition of "tobacco products" as used in the cigarette tax and tobacco tax law;

(4) Amending section 1 to reflect its amended purpose; and

(5) 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 Health and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 826, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 826, H.D. 2, S.D. 1, and be referred to your Committees on Ways and Means and Judiciary.

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

________________________________ ROSALYN H. BAKER, Chair

________________________________ JARRETT KEOHOKALOLE, Chair