HB 598 Summary

• Establishes the offense of unlawful shipment of tobacco products, making it a class C felony for shipments valued at $10,000 or more and a misdemeanor for lesser amounts, unless taxes are paid or products are exempt.

• Increases the wholesale/dealer license fee for cigarettes and tobacco products from $2.50 to $250 annually.

• Increases the retail tobacco permit fee from $20 to $300 annually and requires retailers to specify whether each location sells electronic smoking devices.

• Allocates $750,000 annually beginning July 1, 2021 from tobacco excise tax revenues to the Hawaii tobacco prevention and control trust fund for health education and prevention programs targeting youth electronic smoking device use.

• Repeals section 245-17 of Hawaii Revised Statutes, which previously regulated delivery sales of electronic smoking devices, and expands the definition of "tobacco products" to include electronic smoking devices and related components.