CONFERENCE COMMITTEE REP. NO. 257

Honolulu, Hawaii

, 2025

RE: H.B. No. 441

H.D. 2

S.D. 2

C.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madam and Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 441, H.D. 2, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO CIGARETTE TAXES,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Beginning January 1, 2026, increase the cigarette tax from sixteen cents to eighteen cents;

(2) Allocate the increase in the cigarette tax amount to be deposited into the Hawaii Cancer Research Special Fund; and

(3) Require all cigarette tax revenues allocated to the Hawaii Cancer Research Special Fund to be used exclusively for debt service of capital expenditures and building maintenance until June 30, 2041.

Your Committee on Conference has amended this measure by:

(1) Specifying that all cigarette tax revenues allocated to the Hawaii Cancer Research Special Fund be used exclusively for debt service of capital expenditures and building maintenance until June 30, 2030, rather than June 30, 2041;

(2) Requiring that, beginning July 1, 2030, of each amount deposited into the Hawaii Cancer Research Special Fund, two cents per cigarette shall be used exclusively for debt service of capital expenditures and building maintenance;

(3) Changing the effective date to December 31, 2025; and

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

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 441, H.D. 2, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 441, H.D. 2, S.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ JOY A. SAN BUENAVENTURA Chair	____________________________ GREGG TAKAYAMA Co-Chair
____________________________ DONNA MERCADO KIM Co-Chair	____________________________ ANDREW TAKUYA GARRETT Co-Chair
____________________________ DRU KANUHA Co-Chair	____________________________ SUE L. KEOHOKAPU-LEE LOY Co-Chair