THE SENATE

S.B. NO.

1280

THIRTY-SECOND LEGISLATURE, 2023

S.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO FUNDING FOR THE DEPARTMENT OF THE ATTORNEY GENERAL TOBACCO ENFORCEMENT UNIT.

 

 

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

 

     SECTION 1.  The legislature finds that the tobacco enforcement special fund supports the tobacco enforcement unit to administer, monitor, and enforce the tobacco master settlement agreement and related Hawaii laws, including chapters 486P and 675, Hawaii Revised Statutes.  Section 28-15(c), Hawaii Revised Statutes, currently mandates that moneys in excess of $500,000 remaining in the tobacco enforcement special fund at the close of each fiscal year lapse to the credit of the state general fund.  Section 245-26(a)(2), Hawaii Revised Statutes, transfers a percentage of the cigarette tax stamp fee into the tobacco enforcement special fund.  Section 328L-2, Hawaii Revised Statutes, mandates that, of all the tobacco settlement moneys received by the State in each fiscal year, the first $350,000 of those moneys be deposited in the state treasury to the credit of the tobacco enforcement special fund.

     The amounts of the cigarette tax stamp revenues deposited into the tobacco enforcement special fund have noticeably dropped in recent years.  This trend is expected to continue.  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.

     Accordingly, the purpose of this Act is to stabilize and increase funding for the tobacco enforcement unit within the department of the attorney general by increasing:

     (1)  The amount of funds that the tobacco enforcement special fund may carry over at the end of the fiscal year;

     (2)  The cigarette tax stamp fee and the percentage of that fee allotted to the tobacco enforcement special fund; and

     (3)  The 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.

     SECTION 2.  Section 28-15, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  All unencumbered and unexpended moneys in excess of [$500,000] $750,000 remaining on balance in the tobacco enforcement special fund at the close of June 30 of each year shall lapse to the credit of the state general fund."

     SECTION 3.  Section 245-26, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Stamps shall be sold at their denominated values, plus a stamp fee of [1.7] 2.2 per cent of the denominated value of each stamp sold, composed of the aggregate of:

     (1)  .2 per cent of the denominated value of the stamp to pay for the cost to the State of providing the stamps, with that amount to be deposited to the credit of the department of taxation's cigarette tax stamp administrative special fund; and

     (2)  [1.5] 2.0 per cent of the denominated value of the stamp to pay for the cost of enforcing the stamp tax, with that amount to be deposited to the credit of the department of the attorney general's tobacco enforcement special fund;

provided that the department by rule may modify the stamp fee to reflect actual costs incurred by the State in providing the stamps."

     SECTION 4.  Section 328L-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  There is established in the state treasury the Hawaii tobacco settlement special fund into which shall be deposited:

     (1)  All tobacco settlement moneys; and

     (2)  All interest and earnings accruing from the investment of moneys in the fund;

provided that of all tobacco settlement moneys received by the State each fiscal year, the sum representing the first [$350,000] $750,000 of those moneys shall first be deposited in the state treasury in each fiscal year to the credit of the tobacco enforcement special fund.  The Hawaii tobacco settlement special fund shall be administered by the department."

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2050.

 

Report Title:

Cigarette Tax Stamp Fees; Tobacco Enforcement Special Fund; Hawaii Tobacco Settlement Special Fund

 

Description:

Increases and stabilizes the amount of funding for the tobacco enforcement special fund within the Department of the Attorney General by:  (1) increasing the amount of funds that the tobacco enforcement special fund may carry over at the end of the fiscal year; (2) increasing the cigarette tax stamp fee and concurrently increasing the percentage of the cigarette tax stamp fee deposited to the tobacco enforcement special fund; and (3) amending the amount of funds to be deposited in the tobacco enforcement special fund from the Hawaii tobacco settlement special fund.  Effective 7/1/2050.  (SD1)

 

 

 

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