STAND. COM. REP. NO. 27

Honolulu, Hawaii

, 2025

RE: H.B. No. 441

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Health, to which was referred H.B. No. 441 entitled:

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

begs leave to report as follows:

The purpose of this measure is to increase the cigarette tax and allocate the increase to be deposited into the Hawaii Cancer Research Special Fund.

Your Committee received testimony in support of this measure from the Department of the Attorney General; Department of Health; University of Hawai‘i Cancer Center; Hawai‘i Pacific Health; Hawaii Substance Abuse Coalition; Hina Mauka; Hawai‘i Primary Care Association; The Queen's Health Systems; Hawaii Medical Association; Coalition for a Tobacco-Free Hawaiʻi; Campaign for Tobacco-Free Kids; American Cancer Society Cancer Action Network; The Friends of Kamalani and Lydgate Park; Hawaii COPD Coalition; and numerous individuals. Your Committee received testimony in opposition to this measure from the Cigar Association of America; Retail Merchants of Hawaii; and five individuals. Your Committee received comments on this measure from Department of Taxation; Tax Foundation; Taxpayers Protection Alliance; and one individual.

Your Committee finds that cigarette smoking remains the leading cause of preventable death nationally, and is linked to heart disease, cancer, and stroke. According to the United States Surgeon General, increasing the price of tobacco products is the single most effective way to reduce consumption. Your Committee further finds that the University of Hawai‘i Cancer Center receives funding through revenues from the State's cigarette tax stamp. However, cigarette tax stamp revenues have been declining since 2015, resulting in fewer funds going to the Cancer Center. Your Committee believes that increasing taxes on cigarettes and little cigars, as proposed by this measure, will reduce tobacco consumption in the State and ensure the University of Hawai‘i Cancer Center receives adequate funding to carry out its important work of building and launching strategic initiatives to combat cancer.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 3000, to encourage further discussion; and

(2) Making a technical, nonsubstantive amendment for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 441, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 441, H.D. 1, and be referred to your Committee on Higher Education.

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

____________________________

GREGG TAKAYAMA, Chair