a                                                     SB3179 CD1

                            CONFERENCE COMMITTEE REPORT NO.108

                            Honolulu, Hawaii
                                            , 2000

                            RE:   S.B. No. 3179
                                  H.D. 3
                                  C.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by the House of Representatives
in S.B. No. 3179, H.D. 3, entitled:  

     "A BILL FOR AN ACT RELATING TO TOBACCO," 

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to prohibit the importation,
distribution, and sale of cigarettes intended for export or use
outside the United States. 

     Cigarettes intended for foreign export or sale are being
imported and sold in the State at below the cost of cigarettes
legally in the market and cigarette and tobacco taxes are not
being paid on these transactions.  This measure will help to stem
the loss of tobacco tax revenues to the State by prohibiting the
sale of export cigarettes, authorizing the confiscation, seizure
 
 
 
                            CONFERENCE COMMITTEE REPORT NO.108
                            Page 2



and forfeiture of illegally sold cigarettes, and establishing
monetary penalties for violations.

     Your Committee on Conference has amended this measure by:

     (1)  Inserting three provisions relating to affixing
          cigarette stamps to export packages, documentation of
          foreign cigarettes, and illegal sale of export or
          foreign cigarettes;

     (2)  Increasing the penalty to a class C felony for
          knowingly selling less than twenty cigarettes or single
          cigarette;

     (3)  Adding to the effective date that the Act takes effect
          only if Senate Bill No. 2486, Regular Session of 2000,
          relating to tobacco stamping, becomes an Act; and

     (4)  Making nonsubstantive changes for clarity.

     As affirmed by the record of votes of the managers of your
Committee on Conference that is attached to this report, your
Committee on Conference is in accord with the intent and purpose
of S.B. No. 3179, H.D. 3, as amended herein, and recommends that
it pass Final Reading in the form attached hereto as
S.B. No. 3179, H.D. 3, C.D. 1.

                                   Respectfully submitted on
                                   behalf of the managers:

  ON THE PART OF THE HOUSE           ON THE PART OF THE SENATE



_____________________________     _______________________________
Rep. ALEX SANTIAGO                Sen. BRIAN T. TANIGUCHI
Co-Chair                          Co-Chair



_____________________________     _______________________________
Rep. RON MENOR                    Sen. BRIAN KANNO
Co-Chair                          Co-Chair
 
 
 
 
 
 
                            CONFERENCE COMMITTEE REPORT NO.108
                            Page 3






_____________________________     _______________________________
Rep. SCOTT K. SAIKI               Sen. MATTHEW M. MATSUNAGA
Co-Chair                          Co-Chair



_____________________________     _______________________________
Rep. BRIAN Y. YAMANE              Sen. JONATHAN CHUN
Co-Chair                          Co-Chair