STAND. COM. REP. NO. 1090
RE: S.B. No. 1280
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Second State Legislature
Regular Session of 2023
State of Hawaii
Your Committees on Ways and Means and Judiciary, to which was referred S.B. No. 1280 entitled:
"A BILL FOR AN ACT RELATING TO FUNDING FOR THE DEPARTMENT OF THE ATTORNEY GENERAL TOBACCO ENFORCEMENT UNIT,"
beg leave to report as follows:
The purpose and intent of this measure is to stabilize and increase funding for the Tobacco Enforcement Unit within the Department of the Attorney General.
More specifically, this measure increases the:
(1) Amount of funds that the Tobacco Enforcement Special Fund may carry over at the end of each fiscal year;
(2) Cigarette tax stamp fee and the percentage of that fee allotted to the Tobacco Enforcement Special Fund; and
(3) Sum of moneys received from the tobacco settlement as set forth in sections 28-15(c), 245-26(a), and 328L‑2(a), Hawaii Revised Statutes.
Your Committees received written comments in support of this measure from the Department of the Attorney General, Department of Health, Department of Taxation, American Cancer Society Cancer Action Network, Hawaii Public Health Institute, and Hawaii Primary Care Association.
Your Committees received written comments in opposition to this measure from three individuals.
Your Committees received written comments on this measure from the Tax Foundation of Hawaii.
Your Committees find that the Tobacco Enforcement Special Fund supports efforts of the Tobacco Enforcement Unit of the Department of the Attorney General's to administer, monitor, and enforce the Tobacco Master Settlement Agreement and related Hawaii laws, including Chapters 486P and 675, Hawaii Revised Statutes. Your Committees also find that, pursuant to section 245-26(a)(2), Hawaii Revised Statutes, the Tobacco Enforcement Special Fund is partially funded by the cigarette tax stamp fee. However, the amounts of the cigarette tax stamp revenues deposited into the Tobacco Enforcement Special Fund have noticeably dropped in recent years. Your Committees further find that, to maintain the Tobacco Enforcement Unit's diligent enforcement efforts and to minimize the risk of losing the Master Settlement Agreement annual payments, it is critical that the unit receive adequate and continuous funding.
Your Committees have amended this measure by:
(1) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and
(2) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.
As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1280, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 1280, S.D. 1.
Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary,
KARL RHOADS, Chair
DONOVAN M. DELA CRUZ, Chair