Volcano to shutter 13 retail vape shops at end of year

More than a dozen Volcano vape shops are closing in Hawaii at year’s end, according to a notice filed with the state Department of Labor and Industrial Relations.

Honolulu-based Jocor Enterprises LLC, doing business as Volcano eCigs, informed DLIR that it would be permanently shutting down its retail operations Dec. 31., with total of about 56 employees to be laid off with the closure.

“The closure is due to changes in Hawaii’s regulatory environment affecting the sale of electronic smoking products,” said Jocor Enterprises in its notice.

The layoffs include positions ranging from sales personnel to retail management and human resources. Most employees will be laid off Dec. 31, while a few will remain through Jan. 15 to assist with administrative and operational closeout activities.

“The Company is providing individual written separation notices to affected employees,” said Jocor in its notice. “Employees will also receive information regarding final compensation, applicable benefits continuation, unemployment insurance, and available workforce assistance resources.”

The list of retail vape shops closing include locations on Oahu at Ala Moana, Nimitz, Keeaumoku, Wahiawa, Waikele, Aiea, Ewa Beach, Kapolei, Kaneohe and Kailua; Maui locations in Kihei and Kahului; and in Hilo on Hawaii island.

According to its website, Volcano Vape Shop has been doing business in Hawaii since 2009 and sells tanks, coils, e-liquids and other vape accessories.

The Volcano closures were announced ahead of several new state laws regulating e-smoking devices and e-liquids.

Act 190, which Gov. Josh Green signed into law in July, holds manufacturers of e- smoking devices and e-liquids sold in Hawaii accountable to existing federal laws.

Starting in October, manufacturers are required to certify annually with the state Department of the Attorney General Tobacco Enforcement Unit that they have received a “marketing granted order” from the U.S. Food and Drug Administration and are in full compliance with federal and state laws.

The certification form, which comes with a $1,000 fee, must list each brand name, product name and category of e-vaping product, plus the flavor of each e-liquid sold in the state.

As of Aug. 28, the FDA had authorized only 48 e-cigarettes.

The new law came from the state Legislature’s passage of House Bill 1573, which was supported by numerous health advocacy groups and opposed by the Hawaii Smokers Alliance, which said HB 1573 was “excessive and anti-competitive over-regulation designed to damage or destroy our local vape retailers.”

Starting in January, a list of certified products is to be published online, and only those listed may be legally sold in Hawaii, while all others will be subject to seizure, forfeiture and destruction.

Sellers of unauthorized products will be subject to fines ranging for $500 per product for first violations, $750 to $1,000 per product for second violations and even more for subsequent violations.

Additionally, Act 189, which was signed into law after the passage of Senate Bill 2175, banned the sales and distribution of disposable vapes in Hawaii, starting in January.

Health advocacy groups hailed the passage of the new laws as a victory in their battle against illegal vaping among youth in Hawaii, while the Hawaii Smokers Alliance and some individuals opposed them.

The Retail Merchants of Hawaii opposed SB 2175, saying the state already prohibits sales of e-smoking devices to people under age 21, and that it lacks a consistent battery recycling and disposal system.