REPORT TITLE: 
Cigarette Stamp Tax


DESCRIPTION:
Creates a cigarette tax stamping licensing system for the excise
tax on cigarettes to be imposed and collected through the use of
stamps purchased by licensed wholesalers and dealers, and
affixed to cigarette packages.  Includes provisions for civil
and criminal penalties, and for forfeitures of cigarettes, to be
enforced by the attorney general.  Requires the Director of
Taxation to submit findings and recommendations to the
legislature for the 2006 Session on effectiveness of Act.  (SD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2486
THE SENATE                              S.B. NO.           S.D. 2
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                     A BILL FOR AN ACT

RELATING TO TAXATION.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 245, Hawaii Revised Statutes, is amended
 
 2 by adding a new part to be appropriately designated and to read
 
 3 as follows:
 
 4                 "PART   .  STAMPING OF CIGARETTES
 
 5      §245-A  Cigarette stamping license.(a)  The tax imposed
 
 6 under section 245-3 upon the sale or use of cigarettes shall be
 
 7 paid by stamping licensees approved by the department, through
 
 8 the use of stamps.
 
 9      (b)  For purposes of subsection (a), wholesalers and dealers
 
10 shall be required to obtain a stamping license from the
 
11 department to purchase stamps under subsection (c).  The stamping
 
12 license shall be separate from the license under section 245-2.
 
13 No person without a stamping license shall be allowed to purchase
 
14 stamps or to affix stamps.
 
15      (c)  The department shall furnish stamps for sale.
 
16      §245-B  Sales through financial institutions; rules.  The
 
17 department may enter into agreements to permit the sale of stamps
 
18 by designated financial institutions located within the State.  A
 
19 list of financial institutions designated to sell stamps shall be
 

 
Page 2                                                     2486
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1 made available at the department.  The department may adopt rules
 
 2 as necessary for this purpose pursuant to chapter 91.
 
 3      §245-C  Designs, specifications, and denominations of
 
 4 stamps; affixation; cancellation.  Stamps shall be of such
 
 5 designs, specifications, and denominations as may be prescribed
 
 6 by the department; provided that purchase by the department of
 
 7 stamps from a vendor shall be exempt from the requirements of
 
 8 chapter 103D.  The department shall adopt rules pursuant to
 
 9 chapter 91, on the method and manner in which stamps are to be
 
10 affixed to packages of cigarettes, and may provide for the
 
11 cancellation of stamps.
 
12      §245-D  Affixation prior to distribution.(a)  Beginning
 
13 December 15, 2000, a stamping licensee, or designee, may apply to
 
14 the department for stamps for use as provided in this section.
 
15      (b)  Beginning January 1, 2001, a stamping licensee, or
 
16 designee, shall affix a stamp to the bottom of each individual
 
17 package of cigarettes, prior to distribution.
 
18      (c)  Beginning April 1, 2001, no individual package of
 
19 cigarettes may be sold or offered for sale to the general public,
 
20 unless affixed with the stamp required under subsection (b).
 
21      (d)  Beginning April 1, 2001, no cigarette package may be
 
22 placed or stored in a vending machine, unless affixed with the
 
23 stamp required under subsection (b).
 

 
Page 3                                                     2486
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1      §245-E  Approval of department required for transfer of
 
 2 stamps.  Unaffixed stamps shall not be sold, exchanged, or in any
 
 3 manner transferred by a stamping licensee to another person
 
 4 without prior written approval of the department.  Any person who
 
 5 violates this section shall be fined not less than $500 and not
 
 6 more than $1,000 for each violation.
 
 7      §245-F  Authority to order purchases for stamping licensee;
 
 8 duration; revocation.  A stamping licensee, in writing, shall
 
 9 authorize those persons who may order purchases of stamps for the
 
10 stamping licensee at a location where stamps are sold.  The
 
11 authorization shall continue in effect until written notice of
 
12 revocation of the authority is delivered at the sales location in
 
13 the manner prescribed by rules adopted by the department pursuant
 
14 to chapter 91.
 
15      §245-G  Payment of tax without use of stamps in certain
 
16 transactions; rules.  The department may provide by rule pursuant
 
17 to chapter 91 that the tax imposed by this chapter with respect
 
18 to cigarettes may be paid without the use of stamps in connection
 
19 with a particular type of transaction.
 
20      §245-H  Price; payment; deferred payment purchases.(a)
 
21 Stamps shall be sold to stamping licensees at their denominated
 
22 values, plus a state stamp fee of an aggregate value of 1.7 per
 
23 cent, comprised:
 

 
Page 4                                                     2486
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1      (1)  Of .2 per cent of the denominated value of the stamp to
 
 2           pay for the cost to the State of providing the stamps;
 
 3           and
 
 4      (2)  Of 1.5 per cent of the denominated value of the stamp
 
 5           to pay for the cost of enforcing the stamp tax;
 
 6 or an aggregate 1.7 per cent of the denominated value of the
 
 7 stamp; provided that the department may adopt rules, pursuant to
 
 8 chapter 91, to modify the state stamp fee to reflect the actual
 
 9 costs incurred by the State in providing the stamps.
 
10      (b)  Payment for stamps shall be made at the time of
 
11 purchase; provided that the department may adopt rules pursuant
 
12 to chapter 91 to permit a stamping licensee to defer payments
 
13 therefor as provided for in section 245-I.
 
14      §245-I  Application to fix maximum amount and time of
 
15 deferred-payment purchases; bonding; designation of sales
 
16 locations.(a)  A stamping licensee may apply to the department
 
17 to set the maximum amount of deferred-payment purchases of stamps
 
18 that may remain unpaid by the stamping licensee during the time
 
19 specified under section 245-J.  Upon receipt of the application
 
20 and any bond required pursuant to subsection (b), the department
 
21 shall set the amount for deferred-payment purchases.
 
22      (b)  The department may require that a stamping licensee who
 
23 submits an application for deferred-payment purchases of stamps
 

 
Page 5                                                     2486
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1 to post a bond in an amount of up to one hundred per cent of the
 
 2 maximum amount of allowed deferred-payment purchases as a
 
 3 condition of approval of the application by the department.
 
 4      §245-J  Time for payment of deferred-payment purchases;
 
 5 manner of payment.  Amounts owing for stamps purchased on the
 
 6 deferred-payment basis in any calendar month shall be due and
 
 7 payable on or before the last day of the following calendar
 
 8 month.  Payment shall be made by a remittance payable to the
 
 9 department.
 
10      §245-K  Suspension of privilege to purchase on deferred-
 
11 payment basis or reduction of amount of permissible purchases.
 
12 The department may suspend, without prior notice, a stamping
 
13 licensee's privilege to purchase stamps on the deferred-payment
 
14 basis, or may reduce the amount of deferred-payment purchases
 
15 allowed the stamping licensee, if:
 
16      (1)  The stamping licensee fails to promptly pay for stamps
 
17           when payment is due;
 
18      (2)  The bond or bonds required of the stamping licensee are
 
19           canceled, become void, impaired, or unenforceable for
 
20           any reason; or
 
21      (3)  In the opinion of the department, collection of any
 
22           amounts unpaid or due from the stamping licensee under
 
23           this chapter is jeopardized.
 

 
Page 6                                                     2486
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1      §245-L  Penalty for failure to make timely payment.  A
 
 2 stamping licensee who fails to pay any amount owing for the
 
 3 purchase of stamps within the time required shall pay a penalty
 
 4 of ten per cent of the amount due in addition to the amount due
 
 5 plus interest at the rate specified in section 231-39, from the
 
 6 date on which the amount became due and payable until the date of
 
 7 payment.
 
 8      §245-M  Unused stamps.  The department shall adopt rules
 
 9 pursuant to chapter 91 for a refund or credit to a stamping
 
10 licensee in the amount of the denominated values of any unused
 
11 stamps.
 
12      §245-N  Cigarettes and tobacco products shipped outside the
 
13 State for sale or use outside the State; refund or credit of
 
14 taxes.(a)  The department shall adopt rules pursuant to chapter
 
15 91 to provide a tobacco tax refund or credit to a stamping
 
16 licensee who has paid a tobacco tax on the distribution of
 
17 cigarettes or tobacco products that are shipped to a point
 
18 outside the State for subsequent sale or use outside the State.
 
19      (b)  This part shall not apply to cigarettes or tobacco
 
20 products that are distributed in this State to consumers and that
 
21 are subsequently taken outside the State.
 
22      §245-O  Monthly report on distributions of cigarettes and
 
23 tobacco products, and purchases of stamps.(a)  On or before the
 

 
Page 7                                                     2486
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1 last day of each month, every stamping licensee shall file, on
 
 2 forms prescribed by the department, a report of the stamping
 
 3 licensee's distributions of cigarettes and purchases of stamps
 
 4 during the preceding month, and any other information that the
 
 5 department may require to carry out this section.
 
 6      (b)  On or before the last day of each month, every stamping
 
 7 licensee shall file, on forms prescribed by the department, a
 
 8 report of the stamping licensee's distributions of tobacco
 
 9 products and the wholesale costs of tobacco products during the
 
10 preceding month, and any other information that the department
 
11 may require to carry out this part.
 
12      §245-P  Counterfeiting stamps; illegal possession or use of
 
13 stamps.  Any person who:
 
14      (1)  Intentionally and knowingly makes, alters, or reuses a
 
15           stamp, as defined in section 245-1;
 
16      (2)  Knowingly possesses or distributes a stamp that has
 
17           been falsely made, altered, or reused; or
 
18      (3)  Possesses or uses a stamp without having a stamping
 
19           license,
 
20 is guilty of a class B felony.
 
21      §245-Q  Sale or purchase of packages of cigarettes without
 
22 stamps; fines and penalties.(a)  Beginning April 1, 2001:
 
23      (1)  Any person, other than a stamping licensee, who
 

 
Page 8                                                     2486
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1           knowingly possesses, keeps, stores, acquires, or
 
 2           transports three thousand or more cigarettes which do
 
 3           not have stamps affixed to the cigarette packages as
 
 4           required by this part; or
 
 5      (2)  Any person, who knowingly sells one thousand or more
 
 6           cigarettes which do not have a stamp affixed to the
 
 7           cigarette packages as required by this part,
 
 8 is guilty of a class C felony.
 
 9      (b)  In addition to any other authorized disposition, a
 
10 corporation in violation of subsection (a) may be fined in an
 
11 amount not exceeding $50,000.
 
12      (c)  Beginning April 1, 2001:
 
13           (1)  Any person, other than a stamping licensee, who
 
14                knowingly possesses, keeps, stores, acquires, or
 
15                transports less than three thousand cigarettes
 
16                which do not have stamps affixed to the cigarette
 
17                packages as required by this part; or
 
18           (2)  Any person, who knowingly sells less than one
 
19                thousand cigarettes which do not have a stamp
 
20                affixed to the cigarette packages as required by
 
21                this part,
 
22 is guilty of a misdemeanor.
 
23      (d)  In addition to any other authorized disposition, a
 

 
Page 9                                                     2486
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1 corporation in violation of subsection (c) may be fined in an
 
 2 amount not exceeding $25,000.
 
 3      §245-R  Vending unstamped cigarettes; offense; punishment.
 
 4 (a)  Beginning April 1, 2001, any person who knowingly places for
 
 5 sale in a cigarette vending machine any cigarettes not contained
 
 6 in cigarette packages to which are affixed stamps as required by
 
 7 this part, is guilty of a class C felony.
 
 8      (b)  In addition to any other authorized disposition, a
 
 9 corporation in violation of subsection (a) may be fined in an
 
10 amount not exceeding $50,000.
 
11      §245-S  Penalty exemptions.  Sections 245-P, 245-Q, and 245-
 
12 R shall not apply to cigarettes that are exempt from taxes as
 
13 provided by section 245-3(b).
 
14      §245-T  Enforcement; injunction; disposition of fines.(a)
 
15 Enforcement of this part shall be under the jurisdiction of the
 
16 attorney general.
 
17      (b)  Notwithstanding the existence of other remedies at law,
 
18 the attorney general may apply to the court for a temporary or
 
19 permanent injunction restraining any person from violating or
 
20 continuing to violate this part.  The injunction shall be issued
 
21 without bond.
 
22      (c)  If the attorney general engages the prosecuting
 
23 attorney for investigation or prosecution, or both, resulting in
 

 
Page 10                                                    2486
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1 the imposition and collection of a criminal fine under this part,
 
 2 the fine shall be shared equally between the State and the
 
 3 prosecuting attorney.
 
 4      §245-U  Forfeitures; disposition.(a)  Any cigarette,
 
 5 package of cigarettes, or carton of cigarettes unlawfully
 
 6 possessed, kept, stored, acquired, transported, or retained for
 
 7 the purpose of sale, or sold or offered for sale, in violation of
 
 8 this part or any federal law relating to the sale of tobacco
 
 9 products, may be ordered forfeited pursuant to chapter 712A.
 
10      (b)  Any cigarette, package of cigarettes, or carton of
 
11 cigarettes forfeited pursuant to this section shall be sold to a
 
12 stamping licensee.
 
13      (c)  All proceeds from the sale of any cigarette, package of
 
14 cigarettes, or carton of cigarettes forfeited as provided in this
 
15 section, after payment of expenses of administration and sale,
 
16 shall be distributed to the attorney general.
 
17      (d)  Money distributed to the attorney general shall be used
 
18 for law enforcement purposes, and shall complement but not
 
19 supplant the funds regularly appropriated for those purposes."
 
20      SECTION 2.  Section 245-1, Hawaii Revised Statutes, is
 
21 amended by adding fourteen new definitions to be appropriately
 
22 inserted and to read as follows:
 
23      ""Attorney general" means the attorney general or deputy
 

 
Page 11                                                    2486
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1 attorneys general of the State.
 
 2      "Cigarette package" means a sealed package of cigarettes
 
 3 originating from the manufacturer and bearing the health warning
 
 4 required by law.
 
 5      "Department" means the department of taxation.
 
 6      "Falsely alter" means to change a stamp, in any manner, so
 
 7 the altered stamp falsely appears or purports to have a value or
 
 8 validity which was not authorized or consented to by the
 
 9 department.
 
10      "Falsely make" means to print, manufacturer, or make what
 
11 purports to be a stamp without the authority or consent of the
 
12 department.
 
13      "Falsely reuse" means to affix a stamp, which was previously
 
14 affixed to a package of cigarettes, to another package of
 
15 cigarettes.
 
16      "License" means any license granted under this chapter.
 
17      "Licensee" means a license granted under section 245-2.
 
18      "Prosecuting attorney" means the prosecuting attorney or
 
19 deputy prosecuting attorneys of each of the respective counties.
 
20      "Sale" includes every act of selling.
 
21      "Sell" means to:
 
22      (1)  Solicit and receive an order for;
 
23      (2)  Have, keep, or offer, or expose for sale;
 

 
Page 12                                                    2486
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1      (3)  Deliver for value or in any other way than purely
 
 2           gratuitously;
 
 3      (4)  Peddle;
 
 4      (5)  Keep with intent to sell; or
 
 5      (6)  Traffic in any of paragraphs (1) to (5). 
 
 6      "Stamp" means a stamp printed, manufactured, or made by
 
 7 authority of the department, as provided in this chapter, which
 
 8 is issued, sold, or circulated by the department, and by the use
 
 9 of which the tax levied under this chapter is paid.
 
10      "Stamping license" means a license granted by the department
 
11 under part   that authorizes a wholesaler or dealer to obtain and
 
12 fix cigarette tax stamps to packages of cigarettes.
 
13      "Stamping licensee" means a holder of a stamping license
 
14 granted by the department under part   ."
 
15      SECTION 3.  Section 245-3, Hawaii Revised Statutes, is
 
16 amended by amending the title and subsection (a) to read as
 
17 follows:
 
18      "§245-3  Taxes[; limitations].(a)  Every licensee
 
19 [wholesaler or dealer,] or stamping licensee, in addition to any
 
20 other taxes provided by law, shall pay for the privilege of
 
21 conducting business and other activities in the State an:
 
22      (1)  Excise tax equal to[:
 
23           (A)  4.00 cents for each cigarette sold, used, or
 

 
Page 13                                                    2486
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1                possessed by the wholesaler or dealer, after
 
 2                August 31, 1997; and
 
 3           (B)] 5.00 cents for each cigarette sold, used, or
 
 4                possessed by a [wholesaler or dealer] licensee or
 
 5                stamping licensee after June 30, 1998,
 
 6           whether or not sold at wholesale, or if not sold then
 
 7           at the same rate upon the use by the [wholesaler or
 
 8           dealer;] licensee or stamping licensee; and
 
 9      (2)  Excise tax equal to forty per cent of the wholesale
 
10           price of each article or item of tobacco products sold
 
11           by the [wholesaler or dealer,] licensee or stamping
 
12           licensee, whether or not sold at wholesale, or if not
 
13           sold then at the same rate upon the use by the
 
14           [wholesaler or dealer.] licensee or stamping licensee.
 
15      Where the tax imposed has been paid on cigarettes or tobacco
 
16 products which thereafter become the subject of a casualty loss
 
17 deduction allowable under chapter 235, the tax paid shall be
 
18 refunded or credited to the account of the [wholesaler or
 
19 dealer.] licensee or stamping licensee.  [In applying the tax,
 
20 the tax shall be applied against the latest of the activities of
 
21 selling, using, or possessing.  The tax shall be imposed at the
 
22 time of the last of the following activities to occur:  the sale;
 
23 the use; or the possession of cigarettes or tobacco products.]
 

 
Page 14                                                    2486
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1 The tax shall be applied to cigarettes through the use of
 
 2 stamps."
 
 3      SECTION 4.  Section 245-5, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "§245-5  Returns.  Every licensee, or stamping licensee on
 
 6 or before the last day of each month, shall file with the
 
 7 department [of taxation] a return showing the cigarettes and
 
 8 tobacco products sold, possessed, or used by the licensee, or
 
 9 stamping licensee during the preceding calendar month and of the
 
10 taxes chargeable against the taxpayer in accordance with this
 
11 chapter.  The form of the return shall be prescribed by the
 
12 department and shall [contain such information, including a]
 
13 include:
 
14      (1)  A separate statement of the number and wholesale price
 
15           of cigarettes[, and the];
 
16      (2)  The amount of stamps purchased and used;
 
17      (3)  The wholesale price of tobacco products[,] sold,
 
18           possessed, or used[, as it]; and
 
19      (4)  Any other information that the department may deem
 
20           necessary,
 
21 for the proper administration of this chapter."
 
22      SECTION 5.  Section 245-6, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
Page 15                                                    2486
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1      "§245-6  Payment of taxes; penalties.  At the time of the
 
 2 filing of the return required under section 245-5 [and within the
 
 3 time prescribed therefor], each licensee or stamping licensee
 
 4 shall pay to the department [of taxation] the taxes imposed by
 
 5 this chapter, required to be shown by the return[.], including
 
 6 the unpaid amount of taxes imposed by this chapter.
 
 7      Penalties and interest shall be added to and become a part
 
 8 of the taxes, [when and] as provided by section 231-39."
 
 9      SECTION 6.  Section 245-8, Hawaii Revised Statutes, is
 
10 amended by amending subsection (a) to read as follows:
 
11      "(a)  Every [wholesaler and dealer] licensee and stamping
 
12 licensee shall keep a record of [every]:
 
13      (1)  Every sale or use of cigarettes and tobacco products by
 
14           the [wholesaler or dealer, the] licensee and stamping
 
15           licensee;
 
16      (2)  The number and wholesale price of cigarettes[, and
 
17           the];
 
18      (3)  The wholesale price of tobacco products[,] sold,
 
19           possessed, or used[, and of the];
 
20      (4)  The taxes payable [thereon,] on tobacco products sold,
 
21           possessed, or used, if any[,]; and
 
22      (5)  The amounts of stamps purchased and used,
 
23 in [such] a form [as] that the department [of taxation] may
 

 
Page 16                                                    2486
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1 prescribe.  The records shall be offered for inspection and
 
 2 examination at any time upon demand by the department or the
 
 3 attorney general and shall be preserved for a period of five
 
 4 years, except that the department, in writing, may consent to
 
 5 their destruction within the five-year period or may require that
 
 6 they be kept longer.  The department, by rule, may require the
 
 7 licensee or stamping licensee to keep [such] other records [as]
 
 8 that it may deem necessary for the proper enforcement of this
 
 9 chapter."
 
10      SECTION 7.  Section 245-9, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "§245-9 Inspection.  The department of taxation or the
 
13 attorney general may examine all records required to be kept
 
14 under this chapter, and books, papers, and records of any person
 
15 engaged in the business of wholesaling or dealing cigarettes and
 
16 tobacco products, to verify the accuracy of the payment of the
 
17 taxes imposed by this chapter.  Every person in possession of any
 
18 books, papers, and records, and the person's agents and
 
19 employees, are directed and required to give to the department
 
20 and the attorney general the means, facilities, and opportunities
 
21 for the examinations."
 
22      SECTION 8.  Section 245-15, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
Page 17                                                    2486
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1      "§245-15  Disposition of revenues.  All moneys collected by
 
 2 the State pursuant to this chapter shall be paid into the state
 
 3 treasury as state realizations to be kept and accounted for as
 
 4 provided by law."
 
 5      SECTION 9.  Chapter 245, Hawaii Revised Statutes, is
 
 6 amended by designating sections 245-1 to 245-15 as part I and
 
 7 inserting a title before section 245-1 to read as follows:
 
 8                   "PART I.  GENERAL PROVISIONS"
 
 9      SECTION 10.  There is appropriated out of the general
 
10 revenues of the State of Hawaii the sum of $       , or so much
 
11 thereof as may be necessary, for fiscal year 2000-2001, for
 
12 start-up costs for implementing the cigarette stamp tax system,
 
13 including a one year supply of stamps and stamp cylinders.
 
14      The sum appropriated shall be expended by the department of
 
15 taxation for purposes of this Act.
 
16      SECTION 11.  There is appropriated out of the general
 
17 revenues of the State of Hawaii the sum of $       , or so much
 
18 thereof as may be necessary for fiscal year 2000-2001, to the
 
19 department of attorney general.
 
20      The sum appropriated shall be expended by the department of
 
21 attorney general for the purposes of this Act, including the
 
22 hiring of necessary staff.
 
23      SECTION 12.  The director of taxation shall submit findings
 

 
Page 18                                                    2486
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1 and recommendations to the legislature twenty days prior to the
 
 2 regular session of 2006 as to the effectiveness of this Act in
 
 3 reducing the loss of cigarette tax revenue to the State from
 
 4 illegal sales of untaxed cigarettes.  The director of taxation
 
 5 may submit an interim report to the legislature on any findings
 
 6 relating to the effectiveness of this Act before 2006.
 
 7      SECTION 13.  This Act does not affect the rights and duties
 
 8 that matured, penalties that were incurred, and proceedings that
 
 9 were begun, before its effective date.
 
10      SECTION 14.  In codifying the new part added to chapter 245,
 
11 Hawaii Revised Statutes, by section 1 of this Act, the revisor of
 
12 statutes shall substitute appropriate section numbers for the
 
13 letters used in designating the new sections in this Act.
 
14      SECTION 15.  Statutory material to be repealed is bracketed.
 
15 New statutory material is underscored.
 
16      SECTION 16.  This Act shall take effect upon its approval;
 
17 provided that:
 
18      (1)  Sections 10 and 11 shall take effect on July 1, 2000;
 
19      (2)  On June 30, 2006, this Act shall be repealed and
 
20           sections 245-1, 245-3, 245-5, 245-6, 245-8, 245-9, and
 
21           245-15, Hawaii Revised Statutes, shall be reenacted in
 
22           the form in which they read on the day before the
 
23           approval of this Act.