STAND. COM. REP. NO. 93-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2422
                                     




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 H.B. No.
2422 entitled: 

     "A BILL FOR AN ACT RELATING TO THE ENFORCEMENT OF THE
     TOBACCO SETTLEMENT AGREEMENT,"

begs leave to report as follows:

     The purpose of this bill is to establish the Tobacco
Enforcement Special Fund, which will be administered by the
Department of the Attorney General, to ensure compliance with and
enforcement of:

     (1)  The Master Settlement Agreement;

     (2)  Provisions of the Tobacco Liability Act; and

     (3)  Tobacco prevention programs.

     The first $500,000 from all tobacco moneys received by the
State each fiscal year will be deposited into the Tobacco
Enforcement Special Fund.  All moneys in excess of $500,000
remaining in the Tobacco Enforcement Settlement Fund on June 30
of each year will lapse to the Hawaii Tobacco Settlement Special
Fund.  This measure also exempts the Tobacco Enforcement Special
Fund from central service expenses and special fund
administrative expenses provisions.


 
 
 
 
                                 STAND. COM. REP. NO. 93-00
                                 Page 2

 
     The Department of the Attorney General testified in support
of this measure.  The Coalition for a Tobacco Free Hawaii
testified in support of the intent, but with reservations.  The
Hawaii Nurses' Association opposed this measure.

     Your Committee finds that this measure will ensure that
adjustments to the scheduled payments by the tobacco industry are
justified, and that the industry complies with the public health
measures to which it agreed.

     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 H.B. No.
2422 and recommends that it pass Second Reading and be referred
to the Committee on Finance.

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



                                   ______________________________
                                   ALEXANDER C. SANTIAGO, Chair