SB 2278 Summary

• Establishes the offense of unlawful shipment of tobacco products to non-licensees in Hawaii, with penalties ranging from misdemeanor (value under $10,000) to class C felony (value $10,000 or more).

• Includes electronic smoking devices and e-liquids within the definition of "tobacco products," subjecting them to existing excise taxes and licensing requirements.

• Increases the wholesale dealer license fee from $2.50 to $250 and the retail tobacco permit fee from $20 to $50.

• Requires retailers to obtain and specify on their retail tobacco permits whether they sell electronic smoking devices.

• Repeals section 245-17 relating to delivery sales restrictions and age verification requirements for electronic smoking devices, replacing it with a broader prohibition on unlawful shipment of all tobacco products to non-licensees.

• Allocates $750,000 annually beginning July 1, 2023 from tobacco tax revenues to the Hawaii Tobacco Prevention and Control Trust Fund.

• Takes effect January 1, 2023.