REPORT TITLE:
Tobacco


DESCRIPTION:
Prohibits the sale of export cigarettes and altering the
packaging of cigarettes.  Provides for the seizure of illegally
held cigarettes.  (SB3179 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        3179
THE SENATE                              S.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                     A BILL FOR AN ACT

RELATING TO TOBACCO.



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  .   EXPORT AND FOREIGN CIGARETTES
 
 5      §245-A Sale of export cigarettes prohibited.  It shall be
 
 6 unlawful for a person to sell or distribute in the State, or to
 
 7 acquire, hold, own, possess, or transport for sale or
 
 8 distribution in the State, or to import or cause to be imported
 
 9 into the State for sale or distribution in the State any of the
 
10 following:
 
11      (1)  Cigarettes the package of which bears any statement,
 
12           label, stamp, sticker, or notice indicating that the
 
13           manufacturer did not intend the cigarettes to be sold,
 
14           distributed, or used in the United States, including
 
15           but not limited to labels stating "for export only",
 
16           "U.S. tax-exempt", for "use outside U.S.", or similar
 
17           wording;
 
18      (2)  Cigarettes the package of which does not comply with
 
19           all requirements imposed by federal law regarding
 
20           warnings and other information on packages of
 

 
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 1           cigarettes manufactured, packaged, or imported for
 
 2           sale, distribution, or use in the United States,
 
 3           including but not limited to the specific warning
 
 4           labels specified in the federal Cigarette Labeling and
 
 5           Advertising Act, 15 U.S.C. §1333;
 
 6      (3)  Cigarettes the package of which does not comply with
 
 7           all federal trademark and copyright laws;
 
 8      (4)  Cigarettes imported into the United States on or after
 
 9           January 1, 2000, in violation of 26 U.S.C. §5754 or any
 
10           other federal law or regulation;
 
11      (5)  Cigarettes that the person otherwise knows or has
 
12           reason to know the manufacturer did not intend to be
 
13           sold, distributed, or used in the United States; or
 
14      (6)  Cigarettes for which there has not been submitted to
 
15           the Secretary of the United States Department of Health
 
16           and Human Services the list of the ingredients added to
 
17           tobacco in the manufacture of such cigarettes required
 
18           by the federal Cigarette Labeling and Advertising Act,
 
19           15 U.S.C. §1335a.
 
20      §245-B Alteration of packaging prohibited.  It shall be
 
21 unlawful for any person to alter the package of any cigarettes,
 
22 prior to sale or distribution to remove, conceal, or obscure:
 
23      (1)  Any statement, label, stamp, sticker, or notice
 

 
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                                     S.B. NO.           H.D. 2
                                                        
                                                        

 
 1           indicating that the manufacturer did not intend the
 
 2           cigarettes to be sold, distributed, or used in the
 
 3           United States, including but not limited to labels
 
 4           stating "for export only", "U.S. tax-exempt", "for use
 
 5           outside U.S.", or similar wording; or
 
 6      (2)  Any health warning that is not specified in or does not
 
 7           conform with the requirements of the federal Cigarette
 
 8           Labeling and Advertising Act, 15 U.S.C. §1333.
 
 9      §245-C Criminal penalties for illegal sale or export of
 
10 foreign cigarettes.  Any person who knowingly violates section
 
11 245-A or 245-B shall be guilty of a class C felony, and upon
 
12 conviction thereof, shall be fined not more than $10,000, and may
 
13 be imprisoned not less than one year and not more than five
 
14 years, or both; provided that a corporation shall be fined not
 
15 more than $50,000.
 
16      §245-D Confiscation and seizure of illegal sale or export
 
17 of foreign cigarettes.  The attorney general and the police
 
18 departments of each of the counties may seize and confiscate any
 
19 cigarette, package of cigarettes, or carton of cigarettes that is
 
20 possessed, kept, stored, or retained for the purpose of sale, or
 
21 sold or offered for sale in violation of this part.
 
22      §245-E Forfeiture.  The forfeiture of any cigarette,
 
23 package of cigarettes, or carton of cigarettes unlawfully
 

 
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                                     S.B. NO.           H.D. 2
                                                        
                                                        

 
 1 possessed, or kept, stored, or retained for the purpose of sale,
 
 2 or sold or offered for sale, in violation of this part, may be
 
 3 enforced pursuant to chapter 712A by an appropriate
 
 4 administrative or judicial proceeding.  Any cigarette, package of
 
 5 cigarettes, or carton of cigarettes forfeited as provided in this
 
 6 section shall be ordered destroyed.
 
 7      §245-F  Unfair trade practices.  Any violation of this part
 
 8 shall constitute an unfair method of competition and unfair and
 
 9 deceptive acts or practices in the conduct of any trade of
 
10 commerce under section 480-2 and shall be subject to a civil
 
11 penalty as provided in section 480-3.1.  Each package of
 
12 cigarettes sold in violation of this part shall constitute a
 
13 separate violation.
 
14      §245-G  Deceptive cigarette sales.  The importation or
 
15 reimportation of cigarettes into the United States for sale or
 
16 distribution under any trade name, trade dress, or trademark that
 
17 is the same as, or is confusingly similar to, any trade name,
 
18 trade dress, or trademark used for cigarettes manufactured in the
 
19 United States for sale or distribution in the United States shall
 
20 be deemed to violate section 481A-3.
 
21      §245-H  Enforcement.(a)  Enforcement of this part shall be
 
22 under the concurrent jurisdiction of the attorney general, the
 
23 prosecuting attorneys or deputy prosecuting attorneys of the
 

 
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 1 various counties, and the police departments of the various
 
 2 counties.
 
 3      (b)  In addition to any other remedy provided by law,
 
 4 including enforcement as provided in subsection (a), any person
 
 5 may bring an action for appropriate injunctive or other equitable
 
 6 relief for a violation of this part and for damages sustained by
 
 7 the person, and, if the judgment is for the plaintiff, the
 
 8 plaintiff shall be awarded a sum not less than $1,000 or
 
 9 threefold damages by the plaintiff sustained, whichever sum is
 
10 the greater, and reasonable attorneys fees together with the
 
11 costs of suit.
 
12      §245-I  Applicability.  This part shall not apply to:
 
13      (1)  Cigarettes allowed to be imported or brought into the
 
14           United States for personal use free of federal tax or
 
15           duty or voluntarily abandoned to the United States
 
16           Secretary of Treasury at the time of entry; or
 
17      (2)  Cigarettes sold or intended to be sold as duty-free
 
18           merchandise by a duty-free sales enterprise in
 
19           accordance with the provisions of 19 U.S.C. §1555(b)
 
20           and any implementing regulations; provided, however,
 
21           that this part shall apply to any such cigarettes that
 
22           are brought back into the customs territory for resale
 
23           within the customs territory.
 

 
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 1      §245-J  Penalties cumulative.  The penalties provided in
 
 2 this part are in addition to any other penalties imposed under
 
 3 other law."
 
 4      SECTION 2.  In codifying the new part added to chapter 245,
 
 5 Hawaii Revised Statutes, the revisor of statutes shall substitute
 
 6 appropriate section numbers for the letters used in designating
 
 7 the new sections in this Act.
 
 8      SECTION 3.  This Act shall take effect on July 1, 2050.