Posted on: Friday, June 17, 2005

New law requires permit for sale of tobacco

By Derrick DePledge
Advertiser Capitol Bureau

Retailers who sell tobacco will have to get a permit by March 2007 or face fines and other penalties as the state attempts to keep better track of tobacco sales.

Acting Gov. James "Duke" Aiona signed a bill into law yesterday that requires retailers to obtain an annual $20 permit to sell tobacco products. The lieutenant governor, filling in for Gov. Linda Lingle, who is on a trip in Asia, said an estimated 1,700 to 2,500 retailers sell tobacco.

State officials and lawmakers believe the law will help the state ensure it is receiving all tobacco tax revenue and discourage contraband sales. Retailers who refuse to get a permit could face a petty misdemeanor punishable by a $1,000 fine and 30 days in jail.

Aiona said he hopes the new permits will remind retailers to follow tobacco laws and stop illegal sales of tobacco to minors. "I think this is a tremendous step in that direction," he said.

Some retailers have resisted the new permits and it took several years for lawmakers to agree on the details. State Sen. Rosalyn Baker, D-5th (W. Maui, S. Maui), the chairwoman of the Senate Health Committee, and state Rep. Dennis Arakaki, D-30th (Moanalua, Kalihi Valley, 'Alewa), the chairman of the House Health Committee, were the main lawmakers behind the law.

"Nobody likes it but at the same time it's necessary," said Dick Botti, the president of the Hawai'i Food Industry Association, which represents supermarkets, grocery stores and convenience marts.

Retailers ideally need a permit by December 2006 but technically have until March 2007 before facing any penalty.

Attorney General Mark Bennett said the law could bring the state millions in tobacco tax revenue it is now losing. He said the annual permit fee is not high given the amount of money retailers can make from tobacco sales.

"It is virtually nothing for having the right to sell this at a retail level," Bennett said.

Reach Derrick DePledge at ddepledge@honoluluadvertiser.com or 525-8070.