STAND. COM. REP. NO. 1757

Honolulu, Hawaii

RE: H.B. No. 982

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committees on Ways and Means and Judiciary, to which was referred H.B. No. 982, H.D. 1, S.D. 1, 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 facilitate the enforcement of laws relating to tobacco.

Specifically, this measure amends:

(1) The amount of funds that the tobacco enforcement special fund can carry over at the end of each 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 that are deposited to the credit of the tobacco enforcement special fund.

Your Committees received written comments in support of this measure from the Department of the Attorney General, Department of Health, Hawaii Public Health Institute, Hawaii Primary Care Association, and American Cancer Society Cancer Action Network.

Your Committees received written comments in opposition to this measure from the Hawaii Smokers Alliance and four individuals.

Your Committees received written comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committees find that the tobacco enforcement special fund is the source of funding for efforts to administer, monitor, and enforce the master settlement agreement and related state tobacco laws. Your Committees also find that increasing the amount of moneys distributed to and retained in the fund will ensure that these enforcement efforts continue.

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 changes 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 H.B. No. 982, H.D. 1, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as H.B. No. 982, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary,

________________________________ KARL RHOADS, Chair

________________________________ DONOVAN M. DELA CRUZ, Chair