STAND. COM. REP. NO.  1652-14

Honolulu, Hawaii

                , 2014

RE:   S.B. No. 2496

      S.D. 2

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 2496, S.D. 2, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to:

     (1)  Impose an excise tax equal to an unspecified percentage of the wholesale price of any tobacco product, other than large cigars on or after January 1, 2015; and

     (2)  Allocate funds collected pursuant to the excise tax on tobacco products after December 31, 2014, to the Hawaii Cancer Research Special Fund and the Hawaii Tobacco Prevention and Control Trust Fund.

The University of Hawaii Cancer Center, American Lung Association of the Mountain Pacific, Coalition for a Tobacco-Free Hawaii, American Cancer Society Cancer Action Network, American Heart Association, Hawaii COPD Coalition, and numerous individuals supported this measure.  A Kauai County Councilmember; Cigar Association of America, Inc.; Hawaii Smokers Alliance; Hawaii Food Industry Association; Retail Merchants of Hawaii; and numerous individuals testified in opposition to this measure.  The Department of Taxation, Department of Budget and Finance, and Tax Foundation of Hawaii commented on this measure.  

     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 S.B. No. 2496, S.D. 2, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair