Prohibits the sale and distribution of cigarettes designated for
export and sale outside the United States.  Prohibits the
altering of cigarette packages.  Establishes civil and criminal
penalties, confiscation provisions, and forfeiture provisions.
(SB3179 HD3)

THE SENATE                              S.B. NO.           H.D. 3
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                     A BILL FOR AN ACT



 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:
 5      245-A Sale of export cigarettes prohibited.  It shall be
 6 unlawful for a person to sell or distribute in the State; 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 cigarettes:
11      (1)  The package of which bears any statement, label, stamp,
12           sticker, or notice indicating that the manufacturer did
13           not intend the cigarettes to be sold, distributed, or
14           used in the United States, including but not limited to
15           labels stating "for export only", "U.S. tax-exempt",
16           for "use outside U.S.", or similar wording;
17      (2)  The package of which does not comply with all
18           requirements imposed by federal law regarding warnings
19           and other information on packages of cigarettes
20           manufactured, packaged, or imported for sale,

Page 2                                                     3179
                                     S.B. NO.           H.D. 3

 1           distribution, or use in the United States, including
 2           but not limited to the specific warning labels
 3           specified in the federal Cigarette Labeling and
 4           Advertising Act, 15 U.S.C. 1333;
 5      (3)  The package of which does not comply with all federal
 6           trademark and copyright laws;
 7      (4)  Imported into the United States on or after January 1,
 8           2000, in violation of 26 U.S.C. 5754 or any other
 9           federal law or regulation;
10      (5)  For which the person otherwise knows or has reason to
11           know the manufacturer did not intend to be sold,
12           distributed, or used in the United States; or
13      (6)  For which there has not been submitted to the Secretary
14           of the United States Department of Health and Human
15           Services the list of the ingredients added to tobacco
16           in the manufacture of such cigarettes required by the
17           federal Cigarette Labeling and Advertising Act, 15
18           U.S.C. 1335a.
19      245-B Alteration of packaging prohibited.  It shall be
20 unlawful for any person to alter the package of any cigarettes,
21 prior to sale or distribution to remove, conceal, or obscure:
22      (1)  Any statement, label, stamp, sticker, or notice
23           indicating that the manufacturer did not intend the

Page 3                                                     3179
                                     S.B. NO.           H.D. 3

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

Page 4                                                     3179
                                     S.B. NO.           H.D. 3

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

Page 5                                                     3179
                                     S.B. NO.           H.D. 3

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

Page 6                                                     3179
                                     S.B. NO.           H.D. 3

 1      SECTION 2.  In codifying the new part added to chapter 245,
 2 Hawaii Revised Statutes, the revisor of statutes shall substitute
 3 appropriate section numbers for the letters used in designating
 4 the new sections in this Act.
 5      SECTION 3.  This Act shall take effect on July 1, 2000.