Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 788
                                        S.D. 1

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Health and Human Services, to which was
referred S.B. No. 788 entitled: 


begs leave to report as follows:

     The purpose of this measure is to require a cigarette stamp
tax on packs of cigarettes sold in this State.

     Your Committee received testimony in support of this measure
from the Department of Taxation, Department of Health (DOH), and
American Lung Association.  The Hawaii Food Industry Association
testified orally in support.  The Tax Foundation of Hawaii
submitted informational testimony.

     Your Committee finds that this measure has two benefits in
that it will provide a means of enforcing the payment of
cigarette taxes to the State, and deter smoking, especially among

     On recommendation of the Department of Taxation, your
Committee has amended this measure by deleting its contents and
inserting the contents of S.B. No. 168, with technical,
nonsubstantive changes.  This amendment provides the necessary
enforcement of the new stamping of cigarette packs requirements
by involving the liquor commission, the attorney general, and the
prosecuting attorney.  

     As affirmed by the record of votes of the members of your

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                                   STAND. COM. REP. NO. 494
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Committee on Health and Human Services that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 788, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 788,
S.D. 1, and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Health and Human

                                   SUZANNE CHUN OAKLAND, Chair

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