Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Third Special Session of 2001

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 13 entitled:

begs leave to report as follows:

The purpose of this bill is to promote higher education and health care and assist our construction industry by:

Your Committee notes that S.B. No. 13 is a companion measure to H.B. No. 13 which your Committee reported out earlier in an unamended form, and the contents of these bills are identical. On October 23, 2001, both the Senate and the House held an extensive public hearing on S.B. No. 13 and H.B. No. 13, at which time many citizens and organizations testified on these measures.

Your Committee feels that in order to avoid an economic catastrophe, the State must strengthen and diversify the economy through fiscally responsible investments. The construction and eventual operation of the Center is one part of this economic stimulus package that will create jobs and enhance Hawaii's position as a national center of education and health care.

Your Committee finds that one of the best uses that could be made of monies derived from the State's settlement with tobacco companies is to invest those monies into bio-medical research. In fact, sixteen States have passed budget or enabling legislation to use some portion of their tobacco settlement for bio-science related efforts. These States are Colorado, Connecticut, Illinois, Kansas, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, Utah, and Wisconsin. Most of the States have designated the funds for basic research leading to commercialization at a later stage.

Your Committee additionally finds that the Cancer Research Center component has a direct nexus to the tobacco settlement proceeds and would provide a valuable link in the future regarding preventive care and education in the community. Furthermore, with our multi-ethnic population, clinical trials, and clinical support for those trials, Hawaii has the added benefit of making those drugs available to our cancer patients.

The quest for a facility that can conduct bio-medical research becomes even more important now that we are engaged in a different kind of war. Biotechnology and genetic engineering can become part of an important public health infrastructure, which will not only produce revenue, but a source of security and protection for our people.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 13 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.