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Committee advances bill to regulate, tax heated tobacco products; amendment tabled
Summary
HB357 would classify certain heated tobacco products as modified-risk tobacco products, establish a per-use tax rate, and add regulations to restrict sales; the committee tabled an amendment that would have raised the proposed tax to parity with cigarettes.
The committee gave HB357 a favorable report after debate about taxation and regulation of newly marketed heated tobacco products.
Representative Powers said the bill would reclassify certain heated tobacco items as modified-risk tobacco products and place them under regulation and taxation rather than leaving them unregulated. The sponsor said federal authorities and the FDA's recognition of some products as modified-risk informed the bill's approach.
Senator Coleman Madison offered an amendment to raise the proposed per-single-use tax to 0.03375 (a rate the sponsor was told would place the product at parity with a 20-pack cigarette rate in the committee's comparison). Several members, including Senator Jones, said the state already had high tobacco taxes compared with neighboring states and expressed concern about further increases. The committee voted to table the amendment.
Committee discussion included questions about current market practices and age verification. An industry representative described a retail model in which staff ask prospective purchasers if they are smokers and provide a consultation; the representative said a device and consumables are sold with counseling and follow-up, and that existing retail boutiques use a smoker-status inquiry at purchase. Members raised concerns about whether, without the bill, these products would remain unregulated and accessible to minors; the sponsor said passage would regulate sales and provide age restrictions.
The committee approved HB357 by roll call; the chair announced the bill had been given a favorable report (14 ayes, 2 no). The committee adopted no tax-increasing amendment during the meeting and tabled the amendment offered by Senator Coleman Madison.
