Report Title:

Tobacco Settlement Moneys; Prevention Programs; Revert to Original Intent

Description:

Mandates use of tobacco settlement moneys only for health promotion and disease prevention programs. Repeals transfer of moneys into (1) emergency and budget reserve fund, (2) university revenue undertakings fund; and (3) to DHS for children's health insurance program.

HOUSE OF REPRESENTATIVES

H.B. NO.

2606

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to the tobacco settlement moneys.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 328L-1, Hawaii Revised Statutes, is amended by deleting the definition of "children's health program".

[""Children's health program" means health care for needy children."]

SECTION 2. Section 328L-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The fund shall be used for the purpose of receiving, allocating, and appropriating the tobacco settlement moneys as follows:

[(1) Twenty-four and one-half per cent shall be appropriated into the emergency and budget reserve fund under section 328L-3;

(2) Thirty-five] (1)            per cent shall be appropriated to the department for purposes of section 328L-4; and

[(3) Twelve and one-half] (2)             per cent shall be appropriated into the Hawaii tobacco prevention and control trust fund under section 328L-5[; and

(4) Twenty-eight per cent shall be appropriated into the university revenue-undertakings fund created in section 306-10, to be applied solely to the payment of the principal of and interest on, and to generate required coverage, if any, for, revenue bonds issued by the board of regents of the University of Hawaii to finance the cost of construction of a university health and wellness center, including a new medical school facility, to be situated on the island of Oahu, for the succeeding fiscal year; provided that any moneys in excess of the amount required to pay principal of and interest on, and to generate required coverage, if any, for such revenue bonds in any fiscal year, shall be transferred as follows:

(A) To the emergency and budget reserve fund under section 328L-3, eighty per cent of the excess; and

(B) To the Hawaii tobacco prevention and control trust fund under section 328L-5, twenty per cent of the excess;

in the succeeding fiscal year]."

SECTION 3. Section 328L-4, Hawaii Revised Statutes, is amended to read as follows:

"[[]§328L-4[]] Use of funds appropriated to the department. The department, immediately upon receipt of the [thirty-five]            per cent of moneys appropriated pursuant to section [328L-2(b)(2)] 328L-2(b)(1) shall[:

(1) Transfer up to ten per cent of the total moneys received by the State from tobacco settlement moneys to the department of human services for the children's health insurance program; and

(2) Expend] expend the [remainder of the] moneys received by the department for health promotion and disease prevention programs, including but not limited to, maternal child health and child development programs, promotion of healthy lifestyles (including fitness, nutrition, and tobacco control), and prevention oriented public health programs.

[For purposes of paragraph (2), the] The director shall convene an advisory group that shall be separate from the tobacco prevention and control advisory board, to strategically plan the development and implementation of preventive systems to achieve measurable outcomes and to make recommendations for the expenditure of these moneys. The advisory group shall be composed of nine members with expertise in the programs under [paragraph (2),] this section, and shall be selected at the discretion of the director."

SECTION 4. Section 328L-5, Hawaii Revised Statutes, is amended:

1. By amending subsection (a) to read as follows:

"(a) There is established the Hawaii tobacco prevention and control trust fund as a separate fund of a nonprofit entity having a board of directors and qualifying under section 501(c)(3) of the Internal Revenue Code of 1986, as amended, into which shall be deposited moneys received as provided under section [328L-2(b)(3).] 328L-2(b)(2). The director of health with the concurrence of the governor, shall select, in accordance with law, the entity based upon the proven record of accomplishment of the entity in administering a similar trust fund.

2. By amending subsection (e) to read as follows:

"(e) The assets of the Hawaii tobacco prevention and control trust fund shall consist of:

(1) Moneys appropriated under section [328L-2(b)(3);] 328L-2(b)(2);

(2) Moneys appropriated to the Hawaii tobacco prevention and control trust fund by the state, county, or federal government;

(3) Private contributions of cash or property; and

(4) Income and capital gains earned by the trust fund.

(f) The aggregate principal sum deposited in the Hawaii tobacco prevention and control trust fund shall be invested by the entity selected under subsection (a) in a manner intended to maximize the rate of return on investment of the trust fund consistent with the objective of preserving the trust fund's principal."

SECTION 5. Section 328L-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is established in the state treasury the emergency and budget reserve fund which shall be a special fund administered by the director of finance, into which shall be deposited[:

(1) Twenty-four and one-half per cent of the moneys received from the tobacco settlement moneys under section 328L-2(b)(1);

(2) Appropriations] appropriations made by the legislature to the fund."

SECTION 6. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect upon its approval.

INTRODUCED BY:

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