STAND. COM. REP. NO. 2406

Honolulu, Hawaii

RE: S.B. No. 2185

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committees on Commerce and Consumer Protection and Government Operations, to which was referred S.B. No. 2185 entitled:

"A BILL FOR AN ACT RELATING TO FIREWORKS,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Impose a consumer fireworks tax at the wholesale and retail levels; and

(2) Require the fireworks and articles pyrotechnic records auditor of each county fire department to submit an annual report to the Legislature detailing inventory, recordkeeping, and sales of fireworks to license or permit holders.

Your Committees received testimony in support of this measure from the Hawaii State Fire Council, Maui Fire Department, and Honolulu Fire Department. Your Committees received testimony in opposition to this measure from the Hawaii Food Industry Association; American Promotional Events, Inc.; and one individual. Your Committees received comments on this measure from the Department of the Attorney General, Department of Taxation, Tax Foundation of Hawaii, and one individual.

Your Committees find that the use of fireworks in recent years has substantially increased in the State, resulting in property damage, serious injuries, and in some cases, fatalities, and can put a significant strain on emergency medical services and hospital emergency rooms. This measure would impose a consumer fireworks tax at the retail and wholesale level to discourage the use of fireworks by consumers.

Your Committees note the Illegal Fireworks Task Force established by Act 170, Session Laws of Hawaii 2010, recommended the Legislature consider increasing fireworks permit fees to deter the use of illegal fireworks. Accordingly, amendments to this measure are necessary to incorporate this preferred recommendation. Your Committees also note the lack of enforcement by the Department of Taxation concerning the payment of taxes on illegal aerial fireworks and requests your Committee on Ways and Means further examine this issue and concern.

Your Committees have amended this measure by:

(1) Inserting a findings and purpose section;

(2) Inserting language that doubles the fees for permits required for the purchase and use of fireworks in section 132D-10, Hawaii Revised Statutes;

(3) Deleting language that would levy a consumer fireworks tax at the wholesale and retail levels;

(4) Inserting an effective date of January 1, 2023; 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 Commerce and Consumer Protection and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2185, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2185, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________ SHARON MORIWAKI, Chair

________________________________ ROSALYN H. BAKER, Chair