§245-9  Inspection.  (a)  The departmentand the attorney general may examine all records, including tax returns andreports under section 245-31, required to be kept or filed under this chapter,and books, papers, and records of any person engaged in the business ofwholesaling or dealing cigarettes and tobacco products, to verify the accuracyof the payment of the taxes imposed by this chapter.  Every person inpossession of any books, papers, and records, and the person's agents andemployees, are directed and required to give the department and the attorneygeneral the means, facilities, and opportunities for the examinations.

(b)  The department and the attorney generalmay inspect the operations, premises, and storage areas of any entity engagedin the sale of cigarettes, or the contents of a specific vending machine,during regular business hours.  This inspection shall include inspection of allstatements, books, papers, and records in whatever format, including electronicformat, pertaining to the acquisition, possession, transportation, sale, or useof packages of cigarettes and tobacco products other than cigarettes, to verifythe accuracy of the payment of taxes imposed by this chapter, and of thecontents of cartons and shipping or storage containers to ascertain that allindividual packages of cigarettes have an affixed stamp of proper denominationas required by this chapter.  This inspection may also verify that all stampswere produced under the authority of the department.  Every entity in possessionof any books, papers, and records, and the entity's agents and employees, aredirected and required to give the department and the attorney general themeans, facilities, and opportunities for the examinations.  For purposes ofthis chapter "entity" means one or more individuals, a company,corporation, a partnership, an association, or any other type of legal entity.

(c)  If the department or the attorney generalhas reasonable cause to believe and does believe that cigarettes, stamps, orcounterfeit stamps are being acquired, possessed, transported, kept, sold, oroffered for sale in violation of this chapter, the department or the attorneygeneral may investigate or search the vehicle or premises in which thecigarettes, stamps, or counterfeit stamps are believed to be located.  Ifcigarettes, stamps, or counterfeit stamps are found in a vehicle, premises, orvending machine in violation of this chapter the cigarettes, vending machine,vehicle, stamps, counterfeit stamps, or other tangible personal propertycontaining those cigarettes, stamps, or counterfeit stamps and any books andrecords in possession of the entity in control or possession of the cigarettes,stamps, or counterfeit stamps may be seized by the department or the attorneygeneral and are subject to forfeiture as provided in this chapter and chapter712A. 

(d)  For purposes of this chapter:

"Counterfeit stamp" means any stampthat is not printed, manufactured, distributed, or made by authority of thedepartment.

"Vehicle" means an automobile,airplane, motorcycle, motorboat, or other motor-propelled vehicle. [L 1939, c220, §10; RL 1945, §5759; RL 1955, §125-9; am L Sp 1959 2d, c 1, §16; HRS§245-9; gen ch 1985; am L 1993, c 220, §14; am L 2000, c 249, §§9, 20(2); am L2002, c 94, §§1, 3]