STAND. COM. REP. NO. 953-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 3179
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Health, to which was referred S.B. No.
3179 entitled: 

     "A BILL FOR AN ACT RELATING TO TOBACCO,"

begs leave to report as follows:

     The purpose of this bill is to prohibit the sale of export
cigarettes, which are intended for foreign purchase and
consumption in Hawaii.

     Legislative Information Services of Hawaii testified in
support of this bill.  The Office of Information Practices did
not take a position on this bill but offered suggestions.

     Your Committee finds that cigarettes designated for export
sale and not subject to tobacco taxes are being sold in Hawaii
for below market prices.  This measure will make it illegal to
conduct sales transactions for export cigarettes.  Furthermore,
the measure will:

     (1)  Protect local cigarette retailers;

     (2)  Protect consumers against inadequate package warnings
          and labels; and 

     (3)  Reduce the loss of tobacco tax revenues.

     Your Committee has amended this bill by making technical,
nonsubstantive changes for clarity and consistency.

 
 
                                 STAND. COM. REP. NO. 953-00
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Health that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
3179, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as S.B. No. 3179, H.D. 1, and
be referred to the Committees on Consumer Protection and Commerce
and Judiciary and Hawaiian Affairs.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Health,



                                   ______________________________
                                   ALEXANDER C. SANTIAGO, Chair