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HOUSE OF REPRESENTATIVES |
H.B. NO. |
982 |
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THIRTY-SECOND LEGISLATURE, 2023 |
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STATE OF HAWAII |
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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:
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.
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 the amount of funds that the tobacco enforcement special fund can carry over at the end of the fiscal year; increasing the cigarette tax stamp fee and the percentage of that fee allotted to the tobacco enforcement special fund; and increasing 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, upon its approval, shall take effect on July 1, 2023.
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INTRODUCED BY: |
_____________________________ |
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BY REQUEST |
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 can carry over at the end of the fiscal year; (2) increasing the cigarette tax stamp fee and by 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 on July 1, 2023.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.