H.B. 994 Summary

• Imposes a two-cent per fluid ounce fee on sugar-sweetened beverages sold by distributors in Hawaii, effective June 30, 2022, with exemptions for 100% fruit/vegetable juice, milk, milk substitutes, dietary aids, and infant formula.

• Requires distributors to register with the Department of Health and pass the fee through to retailers, who must pass it to consumers as a separate line item on invoices and price displays.

• Establishes the Healthy Ohana Special Fund to receive all fee revenues, with unspecified percentages allocated to program implementation, chronic disease prevention programs, and a separate Healthy Ohana Trust Fund managed by a nonprofit entity.

• Projects the fee will generate approximately $65.8 million annually and reduce healthcare costs by over $59 million over ten years through decreased sugar-sweetened beverage consumption and obesity prevention.

• Appropriates $250,000 for fiscal years 2021-2022 and 2022-2023 to implement the program, with the Department of Health required to establish a repayment schedule to return general fund appropriations by July 1, 2023.