Senate Bill 1525, which would require manufacturers of electronic smoking devices and e-liquids to submit annual certifications to Hawaiis Department of Taxation and would authorize the department to maintain a public directory and impose penalties, was deferred by the Senate Commerce and Consumer Protection Committee on Feb. 12, 2025 after substantial opposition from multiple state agencies and public-health groups.

Why it matters: The bill sought to create a state-level certification and directory for e-cigarette manufacturers as a regulatory response to unauthorized products on the market. Opponents told the committee the proposal would conflict with federal law, duplicate existing federal lists, and impose administrative duties the Department of Taxation is not equipped to carry out.

Agency and expert objections: Chelsea Okamoto, deputy attorney general assigned to the states tobacco enforcement unit, told the committee the bill would conflict with federal law under the Tobacco Control Act and noted that the U.S. Food and Drug Administration has authorized only 34 e-cigarette products. "As of this morning, the FDA has only authorized 34 e-cigarettes under the Tobacco Control Act and they publicly stated if it's not on that list of 34 products then it should not be on the market," Okamoto said.

Winston Wong of the Department of Taxation said the department lacks subject-matter expertise and investigative resources to determine federal approvals or to police product compliance, noting the department historically focuses on revenue collection rather than product regulatory enforcement. The Department of Health, represented by Lola Urban for Director Kenny, and public-health organizations including the Hawaii Public Health Institute and the Coalition for Tobacco-Free Hawaii opposed the bill, saying it would not effectively remove unauthorized products nor address youth access to flavored products.

Committee action and rationale: Committee leaders cited the significant amount of opposition testimony and recommended deferral. The committee recorded the recommendation to defer SB 1525 to allow further consideration and coordination with state agencies and federal regulatory frameworks.

Next steps: SB 1525 is deferred from the Commerce committee for further work. Committee members noted questions about federal preemption, the statutory definition of e-liquid, the practical capacity of Taxation to administer enforcement duties, and the potential for the bill to allow unauthorized products to remain in the Hawaii market while FDA review is pending.

Votes and disposition: The committee recorded a recommendation to defer SB 1525 after oral and written opposition from the Attorney Generals Office, Department of Taxation, Department of Health, and public-health advocates.