STAND. COM. REP. NO. 1844

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1034
                                     S.D. 1
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No.
1034, S.D. 1, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE HAWAII TOBACCO SETTLEMENT
     SPECIAL FUND,"

begs leave to report as follows:

     The purpose of this bill is to provide statewide tobacco
prevention services and other health-related initiatives by
establishing the Hawaii Tobacco Settlement Special Fund (Special
Fund).

     The Hawaii Medical Association, the Hawaii State Primary
Care Association, the American Association of Retired Persons,
the Hawaii Family Support Center, the Policy Advisory Board for
Elderly Affairs, the Coalition for a Tobacco Free Hawaii, the
Hawaii Nurses' Association, Leon and Malia Productions, the
Hawaii Health Systems Corporation, the Hawaii Public Health
Association, and many individuals testified in support of this
measure.

     The Department of Health, the American Lung Association of
Hawaii, and the American Heart Association of Hawaii testified in
support of the intent of this measure.  The Departments of Human
Services (DHS) and Budget and Finance, the American Cancer
Society, the Kauai Tobacco-Free Community Coalition, and several
individuals commented on this measure.


 
 
                                 STAND. COM. REP. NO. 1844
                                 Page 2

 
     Your Committee has amended this measure by:

     (1)  Providing that an unspecified percentage of the tobacco
          settlement shall be deposited into the Special Fund;

     (2)  Transferring an unspecified percentage of the Special
          Fund's allocation to DHS for children's health
          programs;

     (3)  Establishing an Emergency and Budget Reserve Fund into
          which an unspecified amount of the tobacco settlement
          shall be transferred; and

     (3)  Making technical, nonsubstantive amendments for clarity
          and style.

     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.
1034, S.D. 1, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 1034,
S.D. 1, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair