SB3076

SECTION 1. The legislature finds that Act 62, Session Laws of Hawaii 2023, established a new excise tax on electronic smoking devices and e-liquids, requiring updates to tobacco enforcement laws to ensure the State's enforcement authority extends to these products. The purpose of this Act is to update tobacco enforcement laws to confirm the authority of the department of taxation and the department of the attorney general to inspect and seize tobacco products, including electronic smoking devices and e-liquids, and clarify that untaxed tobacco products are subject to forfeiture as contraband, without regard to the procedures set forth in chapter 712A, Hawaii Revised Statutes, in the same manner as untaxed cigarettes.

SECTION 2. Chapter 245, Hawaii Revised Statutes, is amended by adding to part I a new section to be appropriately designated and to read as follows:

"§245- Forfeiture. Any cigarette or tobacco product, package of cigarettes or tobacco products, carton of cigarettes or tobacco products, or container of cigarettes or tobacco products unlawfully possessed, kept, stored, received, held, owned, acquired, retained, transported, imported, or caused to be imported, distributed, sold, or offered for sale, in violation of this part, shall be forfeited as contraband pursuant to chapter 712A. Any cigarette or tobacco product, package of cigarettes or tobacco products, carton of cigarettes or tobacco products, or container of cigarettes or tobacco products forfeited as provided in this section shall be ordered destroyed."

SECTION 3. Section 245-9, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

"(b) The department and the attorney general may inspect the operations, premises, and storage areas of any entity engaged in the sale of cigarettes[,] or tobacco products, or the contents of a specific vending machine, during regular business hours. This inspection shall include inspection of all statements, books, papers, and records in whatever format, including electronic format, pertaining to the acquisition, possession, transportation, sale, or use of packages of cigarettes and tobacco products [~~other than cigarettes~~], to verify the accuracy of the payment of taxes imposed by this chapter, and of the contents of cartons and shipping or storage containers to ascertain that all individual packages of cigarettes have an affixed stamp of proper denomination as required by this chapter. This inspection may also verify that all stamps were produced under the authority of the department. Every entity in possession of any books, papers, and records, and the entity's agents and employees, are directed and required to give the department and the attorney general the means, facilities, and opportunities for the examinations.

(c) If the department or the attorney general has reasonable cause to believe and does believe that cigarettes, tobacco products, stamps, or counterfeit stamps are being acquired, possessed, transported, kept, sold, or offered for sale in violation of this chapter, the department or the attorney general may investigate or search the vehicle or premises in which the cigarettes, tobacco products, stamps, or counterfeit stamps are believed to be located. If cigarettes, tobacco products, stamps, or counterfeit stamps are found in a vehicle, premises, or vending machine in violation of this chapter the cigarettes, tobacco products, vending machine, vehicle, stamps, counterfeit stamps, or other tangible personal property containing those cigarettes, tobacco products, stamps, or counterfeit stamps and any books and records in possession of the entity in control or possession of the cigarettes, tobacco products, stamps, or counterfeit stamps may be seized by the department or the attorney general and [~~are~~] shall be subject to forfeiture as provided in this chapter and chapter 712A."

SECTION 4. Section 712A-5, Hawaii Revised Statutes, is amended by amending subsection (1) to read as follows:

"(1) The following shall be subject to forfeiture:

(a) Property described in a statute authorizing forfeiture;

(b) Property used or intended for use in the commission of, attempt to commit, or conspiracy to commit a covered offense, or that facilitated or assisted the activity;

(c) Any firearm that is subject to forfeiture under any other subsection of this section or that is carried during, visible, or used in furtherance of the commission, attempt to commit, or conspiracy to commit a covered offense, or any firearm found in proximity to contraband or to instrumentalities of an offense;

(d) Contraband [~~or untaxed cigarettes in violation of chapter 245~~], which shall be seized and summarily forfeited to the State without regard to the procedures set forth in this chapter;

(e) Any proceeds or other property acquired, maintained, or produced by means of or as a result of the commission of the covered offense;

(f) Any property derived from any proceeds that were obtained directly or indirectly from the commission of a covered offense;

(g) Any interest in, security of, claim against, or property or contractual right of any kind affording a source of influence over any enterprise that has been established, participated in, operated, controlled, or conducted in order to commit a covered offense; and

(h) All books, records, bank statements, accounting records, microfilms, tapes, computer data, or other data that are used, intended for use, or that facilitated or assisted in the commission of a covered offense, or that document the use of the proceeds of a covered offense."

SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval.

INTRODUCED BY:

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BY REQUEST

THE SENATE	S.B. NO.	3076
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII