HOUSE OF REPRESENTATIVES
THIRTY-FIRST LEGISLATURE, 2021
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO STATE FUNDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. 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) Fifteen per cent shall be appropriated into the emergency and budget reserve fund under section 328L‑3;
(2) Twelve and
one-half per cent shall be appropriated into the Hawaii tobacco prevention and
control trust fund under section 328L-5; (3) Twenty-six] (2) Until
July 1, 2033, twenty-six per cent shall be appropriated into the university
revenue-undertakings fund created in section 304A‑2167.5, to be applied
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; and
(4)] (3) Any remaining amounts shall be deposited to the
credit of the state general fund;
in the succeeding fiscal year."
SECTION 2. Section 328L-6, Hawaii Revised Statutes, is amended to read as follows:
§328L-6[ ]] Tobacco prevention and control advisory
board. (a) There is established a tobacco prevention and
control advisory board under the department for administrative purposes.
(b) The tobacco prevention and control advisory board shall consist of members who are involved in tobacco prevention and control. Membership of the board shall be as follows:
(1) One member of the governor's staff, appointed by the governor;
(2) One member to be appointed by the governor from a list of two names submitted by the president of the senate;
(3) One member to be appointed by the governor from a list of two names submitted by the speaker of the house of representatives;
(4) The director or the director's designee;
(5) The superintendent of education or the superintendent's designee;
(6) Three members having demonstrated interest in and having backgrounds beneficial to controlling and preventing the use of tobacco, appointed by the director of health; and
(7) Three members representing populations at risk for tobacco use, appointed by the governor.
(c) Members shall:
(1) Be appointed or designated, as applicable, without regard to section 26-34;
(2) Serve without compensation; and
(3) Serve for a term of three years.
(d) The tobacco prevention and control advisory board, in collaboration with the department, shall develop a strategic plan for tobacco prevention and control, including:
(1) Developing and implementing effective and cost efficient programs, including health promotion and disease prevention;
(2) Developing adequate standards and benchmarks by which measures of program success under paragraph (1) of this subsection may be appropriately evaluated; and
(3) Assessing the effectiveness of programs engaged in health promotion and disease prevention.
The strategic plan shall be in writing and shall be a public document.
SECTION 3. Section 328L-5, Hawaii Revised Statutes, is repealed.
tobacco prevention and control trust fund. (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)(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. (b) Notwithstanding that the Hawaii tobacco
prevention and control trust fund is established within a private entity, the
department of budget and finance shall have oversight authority over the fund
and may make periodic financial audits of the fund; provided that the director
of finance may contract with a certified public accountancy firm for this
purpose. The director of health with the
concurrence of the governor in their sole discretion may rescind the selection
of the entity. If the selection of the
entity [is] rescinded, moneys in the trust fund shall revert back to the State
and shall be deemed to be trust moneys. (c) The entity selected under subsection (a), for
each fiscal year, may expend up to fifty per cent of the total market value of
the Hawaii tobacco prevention and control trust fund on the preceding June 30,
for tobacco prevention and control, including but not limited to, reducing
cigarette smoking and tobacco use among youth and adults through education and
enforcement activities, and controlling and preventing chronic diseases where
tobacco is a risk factor. (d) The Hawaii tobacco prevention and control
trust fund may receive appropriations, contributions, grants, endowments, or
gifts in cash or otherwise from any source, including the State, corporations
or other businesses, foundations, government, individuals, and other interested
parties; provided that any appropriations made by the State shall not supplant
or diminish the funding of existing tobacco prevention and control programs or
any health related programs funded in whole or in part by the State. (e) The assets of the Hawaii tobacco prevention
and control trust fund shall consist of: (1) Moneys
appropriated under section 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. (g) If the entity selected under subsection (a)
is dissolved, the director of health, with the concurrence of the governor,
shall select a successor entity. If the
Hawaii tobacco prevention and control trust fund is terminated, the moneys
remaining in the trust fund shall revert back to the State and shall be deemed
to be trust moneys. (h) The administration of the Hawaii tobacco
prevention and control trust fund shall be advised by the tobacco prevention
and control advisory board created under section 328L-6."]
SECTION 5. Any unencumbered balances remaining in the Hawaii tobacco prevention and control trust fund as of June 30, 2025, shall lapse to the credit of the general fund on June 30, 2025.
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 2021; provided that sections 1, 2, and 3 shall take effect on June 30, 2025.
Hawaii Tobacco Settlement Special Fund; Hawaii Tobacco Prevention and Control Trust Fund; Repeal; General Fund
Repeals on 6/30/2025 the Hawaii tobacco prevention and control trust fund and transfers unencumbered balances to the general fund. Specifies that Hawaii tobacco settlement special fund moneys shall only be deposited into the University revenue-undertakings fund until 7/1/2033. Prohibits any contract for the management of Hawaii tobacco prevention and control trust fund moneys from extending beyond 6/30/2025. (SD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.