REPORT TITLE:
Export Cigarettes


DESCRIPTION:
Prohibits the sale of export cigarettes and altering the
packaging of cigarettes.  Provides for the seizure of illegally
held cigarettes.  (HB2961 HD3)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2961
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 3
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
 

 
Page 2                                                     2961
                                     H.B. NO.           H.D. 3
                                                        
                                                        

 
 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:
 

 
 
 
Page 3                                                     2961
                                     H.B. NO.           H.D. 3
                                                        
                                                        

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

 
 
 
Page 4                                                     2961
                                     H.B. NO.           H.D. 3
                                                        
                                                        

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

 
 
 
Page 5                                                     2961
                                     H.B. NO.           H.D. 3
                                                        
                                                        

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

 
Page 6                                                     2961
                                     H.B. NO.           H.D. 3
                                                        
                                                        

 
 1           that this part shall apply to any such cigarettes that
 
 2           are brought back into the customs territory for resale
 
 3           within the customs territory.
 
 4      §245-J  Penalties cumulative.  The penalties provided in
 
 5 this part are in addition to any other penalties imposed under
 
 6 other law."
 
 7      SECTION 2.  In codifying the new part added to chapter 245,
 
 8 Hawaii Revised Statutes, the revisor of statutes shall substitute
 
 9 appropriate section numbers for the letters used in designating
 
10 the new sections in this Act.
 
11      SECTION 3.  This Act shall take effect on           .