§245-9  Inspection.  (a)  The department
and the attorney general may examine all records, including tax returns and
reports 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 of
wholesaling or dealing cigarettes and tobacco products, to verify the accuracy
of the payment of the taxes imposed by this chapter.  Every person in
possession of any books, papers, and records, and the person's agents and
employees, are directed and required to give the department and the attorney
general the means, facilities, and opportunities for the examinations.



(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 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.  For purposes of
this 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 general
has reasonable cause to believe and does believe that cigarettes, 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, stamps, or counterfeit stamps are believed to be located.  If
cigarettes, stamps, or counterfeit stamps are found in a vehicle, premises, or
vending machine in violation of this chapter the cigarettes, vending machine,
vehicle, stamps, counterfeit stamps, or other tangible personal property
containing those cigarettes, stamps, or counterfeit stamps and any books and
records in possession of the entity in control or possession of the cigarettes,
stamps, or counterfeit stamps may be seized by the department or the attorney
general and are subject to forfeiture as provided in this chapter and chapter
712A. 



(d)  For purposes of this chapter:



"Counterfeit stamp" means any stamp
that is not printed, manufactured, distributed, or made by authority of the
department.



"Vehicle" means an automobile,
airplane, motorcycle, motorboat, or other motor-propelled vehicle. [L 1939, c
220, §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 L
2002, c 94, §§1, 3]