STAND. COM. REP. NO.1363

Honolulu, Hawaii

, 2001

RE: H.B. No. 516

H.D. 1

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 516, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TOBACCO,"

begs leave to report as follows:

The purpose of this measure is to establish the cigarette tax stamp enforcement special fund, tobacco enforcement special fund, and cigarette tax stamp administrative special fund. In addition, this measure:

(1) Provides that of the aggregate 1.7 per cent cigarette stamp fee, .2 per cent shall be deposited into the cigarette tax stamp administrative special fund and 1.5 per cent shall be deposited into the cigarette tax stamp enforcement special fund;

(2) Provides an unspecified percentage reduction in the cost of cigarette tax stamps to compensate agents that purchase stamps and place them on cigarette packages;

(3) Exempts from the cigarette tax stamp cigarettes sold for personal use at sales outlets operated by the U.S. armed forces;

(4) Requires that fines imposed for violations of the cigarette tax and tobacco tax laws be deposited in the cigarette tax stamp enforcement special fund;

(5) Provides that of all tobacco settlement moneys received by the State each fiscal year, the sum representing the difference between the first $350,000 and the unexpended and unencumbered balance of the tobacco enforcement special fund be deposited in the state treasury to the credit of the tobacco enforcement special fund;

(6) Requires the Department of Taxation to provide the attorney general any information necessary for the proper administration of the tobacco products reporting and tobacco liability laws;

(7) Allows the Attorney General to bring civil action against violators of the tobacco products reporting and tobacco liability laws; and

(8) Makes several appropriations to and from the special funds created by this measure for the implementation, administration, and execution of the cigarette tax and tobacco tax laws.

Your Committee received testimony in support of this measure from the Department of the Attorney General, Costco Wholesale, and Hawaiian Isles Enterprises, Inc.

Your Committee finds that this measure improves the enforcement and administration of the cigarette tax, tobacco tax, and cigarette stamp tax.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 516, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair