STAND. COM. REP. NO. 1685

Honolulu, Hawaii

RE: H.B. No. 826

H.D. 2

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committees on Ways and Means and Judiciary, to which was referred H.B. No. 826, H.D. 2, S.D. 1, 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 provide additional resources to the Department of the Attorney General to protect the public from the damages caused by using products that contain nicotine.

More specifically, this measure:

(1) Authorizes the use of moneys in the tobacco enforcement special fund for all functions of the Department of the Attorney General;

(2) Expands the functions of the Electronic Smoking Device Retailer Registration Unit to include enforcement of laws that regulate the sale of electronic smoking devices;

(3) Prohibits retailers from selling flavored tobacco products, mislabeling e-liquids containing nicotine, and selling tobacco products other than through in-person retail sales; and

(4) Expands the definition of "tobacco product" to include e-liquid products and electronic smoking devices.

Your Committees received written comments in support of this measure from the Department of Health, Hawaii Primary Care Association, Hawaii State Teachers Association, Independent Schools, Hawaii Public Health Institute, Hawaii COPD Coalition, Adventist Health Castle, Hawaii Dental Association, Blue Zones Project, and twenty-one individuals.

Your Committees received written comments in opposition to this measure from the Attorney General; Hawaii Smokers Alliance; American Cancer Society Cancer Action Network; American Heart Association; Cigar Association of America, Inc.; AlohaCare; Retail Merchants of Hawaii, and eleven individuals.

Your Committees received written comments on this measure from the Department of Taxation, Department of Budget and Finance, Black Lava Vape, and Tobacco-Free Kids Action Fund.

Your Committees find that abolishing the Electronic Smoking Device Retailer Registration Unit will help to streamline the registration process for retailers who engage in the sale of electronic smoking devices and will help to reduce unnecessary government expenditures.

Your Committees have amended this measure by:

(1) Deleting provisions that expanded the purposes for which moneys in the tobacco enforcement special fund may be used;

(2) Abolishing the Electronic Smoking Device Retailer Registration Unit;

(3) Clarifying that fines for the second or subsequent offenses for selling certain tobacco products shall be assessed only if the second or subsequent offense is committed within an unspecified time period after the first offense; and

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

As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 826, H.D. 2, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as H.B. No. 826, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary,

________________________________ KARL RHOADS, Chair

________________________________ DONOVAN M. DELA CRUZ, Chair