REPORT TITLE:
Tobacco Special Fund

DESCRIPTION:
Establishes a new chapter entitled the Hawaii Tobacco Settlement
Special Fund which:
(1)  Establishes the fund;
(2)  Outlines uses of the fund; and
(3)  Appropriates moneys to the fund. (HB175 HD1)


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        175
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO TOBACCO.



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

 1      SECTION 1.  Research has shown that cigarette smoking and
 
 2 tobacco use are the leading causes of preventable morbidity and
 
 3 mortality in Hawaii and the nation.  In Hawaii, more than 1,300
 
 4 residents die annually as a result of tobacco-related illness,
 
 5 which accounts for sixteen per cent of resident deaths and more
 
 6 than $320,000,000 in economic impact.  Federal and state health
 
 7 objectives for the years 2000 and 2010, which offer a vision for
 
 8 the new century, call for improvements in health status.  These
 
 9 improvements are achieved through prevention, intervention,
 
10 reductions in preventable death and disability, enhanced quality
 
11 of life, and reduced disparities in the health of populations
 
12 within Hawaii, the Pacific, and the nation.
 
13      The purpose of this Act is to establish the Hawaii tobacco
 
14 settlement special fund to serve as a medium for a public-private
 
15 partnership to:
 
16      (1)  Reduce tobacco consumption in Hawaii;
 
17      (2)  Control and prevent chronic diseases where tobacco is a
 
18           risk factor;
 
19      (3)  Promote healthy lifestyles through better nutrition and
 
20           improved physical activity; and
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (4)  Promote children's health.
 
 2      The fund shall serve as a mechanism to maximize financial
 
 3 resources for tobacco prevention and control, health promotion
 
 4 and disease prevention programs, children's health programs, and
 
 5 to serve as a long-term source of stable funding for prevention-
 
 6 oriented public health efforts.
 
 7      SECTION 2.  The Hawaii Revised Statutes is amended by adding
 
 8 a new chapter to be appropriately designated and to read as
 
 9 follows:
 
10                             "CHAPTER
 
11              HAWAII TOBACCO SETTLEMENT SPECIAL FUND
 
12      §   -1 Definitions.  Whenever used in this chapter, unless
 
13 the context otherwise requires:
 
14      "Children's health program" means health care for needy
 
15 children.
 
16      "Department" means the department of health.
 
17      "Director" means the director of health.
 
18      "Fund" means the Hawaii tobacco settlement special fund.
 
19      "Health promotion and disease prevention programs" means
 
20 those public health programs that attempt to reduce resources
 
21 spent on treating preventable illness and functional impairment,
 
22 enhance the quality of life, and reduce disparities in the health
 
23 status of populations.
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      "Tobacco prevention and control programs" means those public
 
 2 health programs that attempt to reduce tobacco consumption.
 
 3      §   -2  Creation of the Hawaii tobacco settlement special
 
 4 fund.(a)  There is established in the state treasury a special
 
 5 fund to be known as the Hawaii tobacco settlement special fund
 
 6 into which shall be deposited the total amount collected by the
 
 7 State from the tobacco settlement to be administered by the
 
 8 department in accordance with this section. The moneys received
 
 9 by the State from the settlement with the tobacco companies and
 
10 any interest, income, and capital gains earned by the fund shall
 
11 constitute the special fund assets.
 
12      (b)  The department may contract with and transfer money
 
13 from this fund to interest-bearing accounts or to a private
 
14 entity for investment until such time as moneys may be needed for
 
15 the purposes of this chapter.  All interest accruing from the
 
16 investment of these moneys shall be credited to the Hawaii
 
17 tobacco settlement fund.
 
18      (c)  The department shall transfer up to fifty per cent of
 
19 the allocation to the department of human services for children's
 
20 health programs.
 
21      (d)  The department shall expend moneys in the fund to:
 

 
 
 
 
 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (1)  Reduce cigarette smoking and tobacco use among youth
 
 2           and adults through education and enforcement
 
 3           activities;
 
 4      (2)  Control and prevent chronic diseases where tobacco use
 
 5           is a risk factor;
 
 6      (3)  Promote healthy lifestyles through better nutrition and
 
 7           improved physical activity; and
 
 8      (4)  Assess the effectiveness of health promotion and
 
 9           disease prevention and tobacco prevention and control
 
10           programs.
 
11      (e)  The fund may receive appropriations, contributions,
 
12 grants, endowments, or gifts in cash or otherwise from any source
 
13 provided, as any appropriations made by the State are not
 
14 intended to supplant the funding of existing prevention programs.
 
15      (f)  There shall be an endowment component of the fund.
 
16      (g)  Moneys in the fund shall be used by the department for
 
17 the purposes of this chapter; provided that not more than five
 
18 per cent of this amount shall be used for administrative
 
19 expenses."
 
20      SECTION 3.  (a)  There is established in the department of
 
21 health an advisory board to develop a strategic plan to
 
22 effectuate the purposes of chapter    , Hawaii Revised Statutes.
 
23      (b)  The strategic plan shall:
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (1)  Assess the current status and effectiveness of programs
 
 2           engaged in health promotion, disease prevention, and
 
 3           tobacco prevention and control;
 
 4      (2)  Include detailed recommendations for the implementation
 
 5           of specific programs deemed necessary to further carry
 
 6           out the purposes of chapter    , Hawaii Revised
 
 7           Statutes; and
 
 8      (3)  Contain sufficient standards and benchmarks by which
 
 9           measures of program success may be appropriately
 
10           evaluated.
 
11      (c)  The advisory board shall be sufficiently representative
 
12 of community stakeholders so as to assure broad-based input into
 
13 the development of the plan.
 
14      (d)  The department of health shall report its findings,
 
15 strategic plan, and recommendations to the legislature no later
 
16 than twenty days prior to the convening of the regular session of
 
17 2000.
 
18      SECTION 4.  If any provision of this Act, or its application
 
19 to any person or circumstance is held invalid, the invalidity
 
20 shall not affect other provisions or applications of the Act
 
21 which may be given effect without the invalid provision or
 
22 application, and to this end the provisions of this Act are
 
23 severable.
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      SECTION 5.  There is appropriated out of the general
 
 2 revenues of the State of Hawaii the sum of $    or so much
 
 3 thereof as may be necessary for fiscal year 1999-2000 and the sum
 
 4 of $    or so much thereof as may be necessary for fiscal year
 
 5 2000-2001 of the total moneys received by the State from the
 
 6 settlement with the tobacco companies to the Hawaii tobacco
 
 7 settlement special fund.
 
 8      The sums appropriated for the Hawaii tobacco settlement
 
 9 special fund shall be expended by the department of health for
 
10 the purposes of this Act.
 
11      SECTION 6.  This Act shall take effect upon its approval;
 
12 provided that section 5 shall take effect on July 1, 1999.