A proposed 50 percent surcharge on fireworks could cut sales and ease the concerns of the state's estimated 154,000 lung disease suffers, who often dread the smoky New Year's and Fourth of July celebrations.

But the state's largest wholesaler of fireworks warns that a tax of that magnitude could put it and many of its competitors out of business and encourage the use of consumer aerials and other illegal fireworks.

The 50 percent surcharge on gross sales placed on retailers is one of two plans, designed to curb the use of fireworks, still alive in the waning weeks of this year's Legislature. The other would increase the cost of fireworks permits for purchases and licenses for importers.

Those who want to restrict, if not outright ban, fireworks have ramped up their efforts in recent years as complaints about health hazards, safety, noise and illegal fireworks have risen.

"Our stand is anything that will help decrease the amount of fireworks is helpful," said Jean Evans, executive director for the American Lung Association in Hawai'i. "There are 154,000 people in Hawai'i who have some sort of lung disease, and (New Year's Eve) is just devastating to them."

Opponents of stricter legislation, however, argue that making it more difficult for consumers to get legal fireworks increases the demand for black-market fireworks such as Roman candles and other aerial devices that have been on the rise in recent years.

If that happens, say goodbye to most of the legitimate retail market, said Jerry Farley, a lobbyist for American Promotional Events, which also does business in Hawai'i as TNT Fireworks.

Farley said he is "absolutely convinced they will cease to do business in Hawai'i," and that other fireworks wholesalers will do the same.

TWO VERSIONS AT ODDS

Both the House and the Senate want to make it tougher to purchase fireworks, but the two have backed vastly different versions of Senate Bill 1060, making it questionable whether a new law can emerge.

The House version includes the 50 percent tax and also would require retailers to register with the state Department of Taxation. Failure to do so would be a misdemeanor.

The version approved by the Senate calls for increasing the cost of a fireworks permit from $25 to $35, and the license for importers from $3,000 to $4,000. Those fees would go to the general-fund coffers of the counties. The Senate version also calls for increasing the cost of a permit to set off display fireworks from $110 to $250.

For the bill to reach Gov. Linda Lingle's desk, the issue must now be hashed out by lawmakers in conference committee during the coming weeks.

"What's important is that we do have a vehicle in conference committee right now," said Sen. Will Espero, D-20th ('Ewa Beach, Waipahu).

Rep. Marilyn Lee, D-38th (Mililani, Mililani Mauka), said she hoped some legislation would come out this session.

Lee said the surcharge is similar to a "sin tax" that is often slapped on tobacco, alcohol or other items as a disincentive.

"The bottom line is if you increase the price, you decrease the amount consumed," Lee said.

"If it was just an increase on the permit, there would be less of a chance for the consumption to come down," she said.

'PRICE-SENSITIVE'

Espero said a 50 percent surcharge may be too large a burden. "Especially with the financial condition of the state and families, if there's going to be an increase considered, it should be the smaller increase and not the larger one," he said.

Farley, of TNT Fireworks, said neither proposals will work and may only serve as an impetus for more aerial and other illegal fireworks to come to Hawai'i.

A number of retail chains have already said they will no longer sell fireworks if the 50 percent tax is passed, Farley said. "People will not sell them because their won't be enough profit," he said. "Fireworks are very price-sensitive."

If his client and other fireworks distributors drop out, it would leave the most fireworks sales to black marketeers who would sell both legal and illegal fireworks, he said.

Farley said more resources should be devoted to helping law enforcement combat the increase in illegal fireworks, noting that his clients support channeling revenues from fireworks licenses and fees to law enforcement agencies.

SUPPORT FOR BAN

Capt. Terry Seelig, a spokesman for the Honolulu Fire Department, has maintained the position that there should be either a statewide fireworks ban, or that counties should be given the option of enacting a ban or tougher laws than the state.

It's a position the fire departments of all four counties support, he said.

Bills banning fireworks failed to gather much support in this year's session, however.

As far as what's now before the Legislature, "either of them have the potential to help with regulating consumer fireworks, and that's good," Seelig said. "But they're not really the complete fireworks resolution."

Evans, of the Lung Association, said her organization also would prefer a complete ban.

"The problem is not necessarily the legal fireworks," Evans said, citing an apparent increase in illegal aerial use. "But if you don't have an overall ban, it's hard to enforce that."

Espero said he would like to insert language establishing an illegal aerials task force. The increase in illegal aerials "tells me either we have poor inspection of our cargo that's coming in, we have major corruption in our ports or we have a little of both."