STAND. COM. REP. NO. 2262

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 3179
                                        




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

Sir:

     Your Committees on Commerce and Consumer Protection and
Judiciary, to which was referred S.B. No. 3179 entitled: 

     "A BILL FOR AN ACT RELATING TO TOBACCO,"

beg leave to report as follows:

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

     Legislative Information Services of Hawaii submitted
testimony on the measure. 

     Your Committees find that 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 that cigarette
and tobacco taxes are not being paid on these transactions.  This
measure would help to stem the loss of tobacco tax revenues to
the State by prohibiting the sale of export cigarettes,
authorizing the forfeiture of illegally sold cigarettes, and
establishing civil and criminal penalties for violations of the
prohibition.

     As affirmed by the records of votes of the members of your
Committees on Commerce and Consumer Protection and Judiciary that
are attached to this report, your Committees are in accord with
the intent and purpose of S.B. No. 3179 and recommend that it
pass Second Reading and be referred to the Committee on Ways and
Means.

 
a                                                     SB3179
                                   STAND. COM. REP. NO. 2262
                                   Page 2



                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Commerce and
                                   Consumer Protection and
                                   Judiciary,



____________________________       ______________________________
AVERY B. CHUMBLEY, Co-Chair        BRIAN KANNO, Co-Chair



____________________________       ______________________________
MATTHEW M. MATSUNAGA, Co-Chair     BRIAN T. TANIGUCHI, Co-Chair

 
a                                                     SB3179