CONFERENCE COMMITTEE REP. NO. 104-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 3076

S.D. 1

H.D. 2

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir and Madam:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 3076, S.D. 1, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TOBACCO ENFORCEMENT,"

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:

(1) Clarify that untaxed tobacco products are subject to forfeiture as contraband, without regard to the procedures set forth in Hawaii's asset forfeiture law in the same manner as untaxed cigarettes;

(2) 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

(3) Amend the fine for corporations that unlawfully sell or purchase packages of cigarettes without stamps.

Your Committee on Conference finds that the regulation of electronic smoking devices is a critical component of the State's comprehensive tobacco control efforts. Raising the price of tobacco products reduces consumption and effective enforcement curbs illicit purchases. This measure will clarify tobacco enforcement laws and strengthen the enforcement of excise taxes levied on electronic smoking devices.

Your Committee on Conference has amended this measure by:

(1) Deleting language that would have changed the fine for corporations that unlawfully sell or purchase packages of cigarettes without stamps to unspecified amounts;

(2) Making it effective on September 1, 2026; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

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. 3076, S.D. 1, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 3076, S.D. 1, 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

____________________________ DAVID A. TARNAS Co-Chair	____________________________ KARL RHOADS Chair
____________________________ DAISY HARTSFIELD Co-Chair	____________________________ BRANDON J.C. ELEFANTE Co-Chair