CONFERENCE COMMITTEE REP. NO.141

Honolulu, Hawaii

, 2001

RE: S.B. No. 992

S.D. 2

H.D. 2

C.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

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. 992, S.D. 2, H.D. 2, 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 improve the administration and enforcement of the cigarette tax, tobacco tax, and cigarette tax system.

Your Committee has amended this measure by inserting a preferable version of this measure, H.B. 516, H.D. 1, S.D. 1, and making additional changes.

As amended, this measure differs from its original contents by:

(1) Not providing for special penalties for the resale of tax-exempt cigarettes from armed services sales outlets since this measure already penalizes that violation;

(2) Allowing licensed cigarette and tobacco wholesalers or dealers to purchase stamps at a reduction of 0.4 per cent of the denominated value of each lot of stamps purchased in order to recover the cost of affixing stamps and authorizing the Department of Taxation to increase or decrease the reduction by rule under chapter 91, Hawaii Revised Statutes;

(3) Requiring the department of taxation and any entity required to file a cigarette or tobacco-related report or return to provide the attorney general any information necessary for the proper administration of the tobacco products reporting and tobacco liability laws;

(4) Allowing the Attorney General to bring civil action against violators of the tobacco products reporting and tobacco liability laws and allowing the State to be awarded the attorney's fees and expenses incurred in prosecuting violations of this chapter;

(5) Appropriating $100,000 for fiscal year 2001-2002 out of the general revenues to be deposited into the cigarette tax stamp enforcement special fund created by this measure and appropriating out of that fund $700,000 and $600,000 for fiscal year 2001-2002 and 2002-2003 respectively for the Attorney General to further cigarette tax stamp enforcement;

(6) Appropriating $40,000 for fiscal year 2001-2002 out of the general revenues to be deposited into the cigarette tax stamp administrative special fund created by this measure and appropriating out of that fund $120,000 and $80,000 for fiscal year 2001-2002 and 2002-2003 respectively for the Department of Taxation to continue to administer the cigarette tax stamp program;

(7) Appropriating $350,000 for fiscal year 2001-2002 and the same sum for fiscal year 2002-2003 out of the tobacco enforcement special fund to carry out the purposes of the tobacco enforcement special fund;

(8) Making this measure effective upon approval, proving that section 8 take effect September 1, 2001, and sections 14 to 18 take effect on July 1, 2001; and

(9) Making nonsubstantive technical and stylistic changes.

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. 992, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 992, S.D. 2, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________

KENNETH T. HIRAKI, Co-Chair

____________________________

DAVID M. MATSUURA, Chair

____________________________

BLAKE K. OSHIRO, Co-Chair

____________________________

BRIAN KANNO, Co-Chair

____________________________

NATHAN SUZUKI, Co-Chair