Bill Text: HI SB2689 | 2016 | Regular Session | Amended
Bill Title: Tobacco Regulation; License Fee; Retail Tobacco Permit; Cigarettes; Tobacco Products
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Engrossed - Dead) 2016-03-16 - The committee(s) on HLT recommend(s) that the measure be deferred. [SB2689 Detail]
Download: Hawaii-2016-SB2689-Amended.html
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THE SENATE |
S.B. NO. |
2689 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
S.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CHAPTER 245, HAWAII REVISED STATUTES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the public health rationale for the regulation of cigarettes and tobacco products is well developed, as tobacco use is the single most preventable cause of disease, disability, and death in the United States. In addition to substantive laws in the State governing specific aspects of tobacco production, sales, and use, Hawaii law requires retailers, wholesalers, and dealers of cigarettes or tobacco products to obtain a special license or permit. These licenses and permits facilitate the enforcement of the cigarette tax and tobacco tax law under chapter 245, Hawaii Revised Statutes. However, the current license fee for wholesalers and dealers is only $2.50 a year, while retail tobacco permit fees cost only $20 a year. To ensure continued tobacco regulation and enforcement of relevant tax laws, the legislature concludes that these fees should be increased and the law updated to include electronic smoking devices and e-liquid.
Accordingly, the purpose of this Act is to:
(1) Add and amend various definitions in chapter 245, Hawaii Revised Statutes, to ensure that dealers, retailers, and wholesalers of electronic smoking devices and e-liquid obtain the applicable license or permit;
(2) Increase the license fee for persons engaged as a wholesaler or dealer of cigarettes, tobacco products, electronic smoking devices, and e-liquid; and
(3) Increase the retail tobacco permit fee for retailers engaged in the retail sale of cigarettes, tobacco products, electronic smoking devices, and e-liquid.
SECTION 2. Section 245-1, Hawaii Revised Statutes, is amended as follows:
1. By adding four new definitions to be appropriately inserted and to read:
""Disposable electronic smoking device" means an electronic smoking device that is designed or intended not to be reused or refilled.
"Electronic smoking device" means any electronic product that can be used to aerosolize and deliver nicotine to the person inhaling from the device, including but not limited to an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, hookah pipe, or hookah pen, and any component of the device or related product, whether or not sold separately, including but not limited to atomizers, coils, drip tips, and tanks.
"E-liquid" means any liquid containing nicotine that is designed or intended to be used in a reusable electronic smoking device, whether or not packaged in a cartridge or other container.
"Reusable electronic smoking device" means an electronic smoking device that is designed or intended to be reused or refilled."
2. By amending the definition of "dealer" to read:
""Dealer" means any person
coming into the possession of cigarettes [or], tobacco products,
electronic smoking devices, or e-liquid which have not been acquired from
an authorized permit holder or licensee under this chapter, or any person
rendering a distribution service who buys and maintains, at the person's place
of business, a stock of cigarettes [or], tobacco products,
electronic smoking devices, or e-liquid that have not been acquired from a
licensee and who distributes or uses such cigarettes [or],
tobacco products[.], electronic smoking devices, or e-liquid."
3. By amending the definition of "retailer" to read:
""Retailer" means an entity that
engages in the practice of selling cigarettes [or], tobacco
products, electronic smoking devices, or e-liquid to consumers and
includes the owner of a cigarette [or], tobacco product,
electronic smoking device, or e-liquid vending machine."
4. By amending the definition of "sale" or "sold" to read:
""Sale" or "sold"
includes any delivery of cigarettes [or], tobacco products, electronic
smoking devices, or e-liquid, whether cash is actually paid therefor or
not."
5. By amending the definition of "wholesale price" to read:
""Wholesale price", in addition to any other meaning of the term, means in the case of a tax upon the use of tobacco products, electronic smoking devices, or e-liquid, or upon a sale not made at wholesale:
(1) If made by a person who during the month
preceding the accrual of the tax made substantial sales to retailers of like
tobacco products, electronic smoking devices, or e-liquid, the average
price of the sales[,]; and
(2) If made by any other person, the average price of sales to retailers of like tobacco products, electronic smoking devices, or e-liquid, made by other taxpayers in the same county during the month preceding the accrual of the tax."
6. By amending the definition of "wholesaler" to read:
""Wholesaler" means a person
rendering a distribution service who buys and maintains, at the person's place
of business, a stock of cigarettes [or], tobacco products, electronic
smoking devices, or e-liquid that the person uses, possesses, or
distributes only to retailers, or other wholesalers, or both."
SECTION 3. Section 245-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The license shall be issued by the
department upon application therefor, in such form and manner as shall be
required by rule of the department, and the payment of a fee of [$2.50,]
$250, and shall be renewable annually on July 1 for the twelve months
ending the succeeding June 30."
SECTION 4. Section 245-2.5, Hawaii Revised Statutes, is amended as follows:
1. By amending subsections (a) to (c) to read:
"(a) [Beginning December 1, 2006,
every] Every retailer engaged in the retail sale of cigarettes [and
other], tobacco products [upon which a tax is required to be paid
under this chapter], electronic smoking devices, or e-liquid shall
obtain a retail tobacco permit.
(b) [Beginning March 1, 2007, it] It
shall be unlawful for any retailer engaged in the retail sale of cigarettes [and
other], tobacco products [upon which a tax is required to be paid
under this chapter], electronic smoking devices, or e‑liquid
to sell, possess, keep, acquire, distribute, or transport cigarettes [or
other], tobacco products, electronic smoking devices, or e-liquid
for retail sale unless a retail tobacco permit has been issued to the retailer
under this section and the retail tobacco permit is in full force and effect.
(c) The retail tobacco permit shall be issued
by the department upon application by the retailer in the form and manner
prescribed by the department, and the payment of a fee of [$20.] $50.
Permits shall be valid for one year, from December 1 to November 30,
and renewable annually. Whenever a retail tobacco permit is defaced,
destroyed, or lost, or the permittee relocates the permittee's business, the
department may issue a duplicate retail tobacco permit to the permittee for a
fee of $5 per copy."
2. By amending subsection (e) to read:
"(e) Any entity that operates as a dealer
or wholesaler and also sells cigarettes [or], other tobacco
products, electronic smoking devices, or e-liquid to consumers at retail
shall acquire a separate retail tobacco permit."
3. By amending subsection (h) to read:
"(h) Any sales of cigarettes [or],
tobacco products, electronic smoking devices, or e-liquid made through a
[cigarette or tobacco product] vending machine are subject to the terms,
conditions, and penalties of this chapter. A retail tobacco permit need not be
displayed on [cigarette or tobacco product] vending machines if the
retail tobacco permit holder is the owner of the [cigarette or tobacco
product] vending machines and the [cigarette or tobacco product]
vending machines are operated at the location described in the retail tobacco
permit."
4. By amending subsection (j) to read:
"(j) A vehicle from which cigarettes [or],
tobacco products [are], electronic smoking devices, or e-liquid is
sold is considered a place of business and requires a retail tobacco permit.
Retail tobacco permits for a vehicle shall be issued bearing a specific motor
vehicle identification number and are valid only when physically carried in the
vehicle having the corresponding motor vehicle identification number. Retail
tobacco permits for vehicles shall not be moved from one vehicle to
another."
5. By amending subsection (l) to read:
"(l) A permittee shall keep a complete and
accurate record of the permittee's cigarette [or], tobacco
product, electronic smoking devices, and e-liquid inventory. The
records shall:
(1) Include:
(A) A written statement containing the name
and address of the permittee's source of its cigarettes [and],
tobacco products[;], electronic smoking devices, and e-liquid;
(B) The date of delivery, quantity, trade name
or brand, and price of the cigarettes [and], tobacco products[;],
electronic smoking devices, and e‑liquid; and
(C) Documentation in the form of any purchase
orders, invoices, bills of lading, other written statements, books, papers, or
records in whatever format, including electronic format, which substantiate the
purchase or acquisition of the cigarettes [and], tobacco products,
electronic smoking devices, and e-liquid stored or offered for sale;
and
(2) Be offered for inspection and examination within twenty-four hours of demand by the department or the attorney general, and shall be preserved for a period of three years; provided that:
(A) Specified records may be destroyed if the department and the attorney general both consent to their destruction within the three-year period; and
(B) Either the department or the attorney general may adopt rules pursuant to chapter 91 that require specified records to be kept longer than a period of three years."
6. By amending subsection (o) to read:
"(o) Any cigarette, package of
cigarettes, carton of cigarettes, container of cigarettes, tobacco product,
package of tobacco products, [or any] container of tobacco products,
electronic smoking device, package of electronic smoking devices, container of
electronic smoking devices, e-liquid, package of e-liquid, or container of
e-liquid unlawfully sold, possessed, kept, stored, acquired, distributed,
or transported in violation of this section may be seized and ordered forfeited
pursuant to chapter 712A."
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on January 7, 2059.
Report Title:
Tobacco Regulation; License Fee; Retail Tobacco Permit; Cigarettes; Tobacco Products
Description:
Amends the definitions of "dealer", "retailer", "wholesale price" and "wholesaler" to include electronic smoking devices and e-liquid. Establishes definitions for "disposable electronic smoking device", "electronic smoking device", "e‑liquid", and "reusable electronic smoking device". Allows electronic smoking devices, packages of electronic smoking devices, containers of electronic smoking devices, e-liquid, packages of e-liquid, and containers of e-liquid to be seized and forfeited if unlawfully sold, possessed, kept, stored, acquired, distributed, or transported. Increases the license fee for persons engaged as a wholesaler or dealer. Increases the retail tobacco permit fee for retailers engaged in the retail sale of cigarettes, tobacco products, electronic smoking devices, and e-liquid. Effective January 7, 2059. (SD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
