STAND. COM. REP. NO.  1331-18

 

Honolulu, Hawaii

                , 2018

 

RE:   S.B. No. 2304

      S.D. 2

      H.D. 2

 

 

 

 

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

 

Sir:

 

     Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 2304, S.D. 2, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO TOBACCO,"

 

begs leave to report as follows:

 

     The purpose of this measure is to reduce the use of tobacco products among youth by:

 

     (1)  Prohibiting the issuance and renewal of retail tobacco permits to retailers within 500 feet of a preschool, school, or public playground;

 

     (2)  Prohibiting the sale of tobacco products and electronic smoking devices at a place of business within 500 feet of a preschool, school, or public playground;

 

     (3)  Amending the criminal offenses of unlawful tobacco retailing; and

 

     (4)  Codifying the Department of Taxation's administrative rule specifying when the Department may suspend, revoke, or decline to renew a retail tobacco permit.

 

     Hawaii Children's Action Network, Hawaii Public Health Association, Keiki Injury Prevention Coalition, Pioneering Healthier Communities of Honolulu, Blue Zones Project-Hawaii, Hawaii Public Health Institute - Coalition for a Tobacco-Free Hawaii, Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii, and numerous individuals testified in support of this measure.  The Department of the Attorney General, Hawaii Petroleum Marketers Association, Retail Merchants of Hawaii, Hawaii Food Industry Association, Eciggity, Aloha Petroleum, Ltd., Hawaii Smokers Alliance, VOLCANO Fine Electronic Cigarettes, Hawaii Cigar Association, Kauai Cigar Company, Kadota Liquor, Black Lava Vape, PCG Enterprises LLC, Irie Hawaii, and many individuals testified in opposition.  The Department of Taxation, Department of Health, and Hui Kakoo provided comments.

 

     Your Committee has amended this measure by:

 

     (1)  Exempting retailers with a valid tobacco permit from the prohibition against selling a tobacco product or an electronic smoking device at a place of business located within 500 feet of a preschool, school, or public playground;

 

     (2)  Defining the term "public playground";

 

     (3)  Grandfathering in existing permits by:

 

          (A)  Applying the restriction prohibiting businesses within 500 feet of a preschool, school, or public playground from holding a retail tobacco permit to new permits issued beginning November 1, 2018; and

 

          (B)  Enunciating that permits validly issued before November 1, 2018, shall be eligible for renewal notwithstanding the business's location;

 

     (4)  Deleting the provisions amending the criminal offenses of unlawful tobacco retailing; and

 

     (5)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

 

     Your Committee notes that the Department of the Attorney General raised concerns as to the ability to enforce the buffer zones by the Departments of Taxation and Health.  Additionally, there were concerns that the amendments to the criminal offenses of unlawful tobacco retailing would pose difficulties in enforcement.  Should your Committee on Judiciary consider this measure, your Committee requests that it address these concerns.

 

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2304, S.D. 2, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Judiciary in the form attached hereto as S.B. No. 2304, S.D. 2, H.D. 2.

 

 

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

 

 

 

 

____________________________

ROY M. TAKUMI, Chair