REPORT TITLE:
Tobacco Settlement Enforcement


DESCRIPTION:
Establishes the Tobacco Enforcement Special Fund.  Exempts the
Fund from the central service surcharge and from reimbursement
for departmental administrative expenses.  Revises the
distribution of the tobacco settlement moneys.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2422
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                S.D. 1
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE ENFORCEMENT OF THE TOBACCO SETTLEMENT AGREEMENT.



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

 1      SECTION 1.  Chapter 28, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to part I to be appropriately designated
 
 3 and to read as follows:
 
 4      "§28-     Tobacco enforcement special fund.  (a)  There is
 
 5 established in the state treasury the tobacco enforcement special
 
 6 fund, into which shall be deposited a portion of the tobacco
 
 7 settlement moneys as specified in section 328L-2(b)(1).
 
 8      (b)  Moneys in the tobacco enforcement special fund shall be
 
 9 administered by the department of the attorney general and shall
 
10 be used for administering, operating, monitoring, and ensuring
 
11 compliance with and enforcement of:
 
12      (1)  The tobacco master settlement agreement as defined in
 
13           chapter 675 and any other statutes or programs relating
 
14           to that agreement;
 
15      (2)  The provisions of chapter 675;
 
16      (3)  Tobacco prevention programs; and
 
17      (4)  Any other requirement deemed necessary to carry out the
 
18           purposes of the fund.
 

 
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 1      (c)  All moneys in excess of $500,000 remaining on balance
 
 2 in the tobacco enforcement special fund on June 30 of each year
 
 3 shall lapse to the credit of the emergency and budget reserve
 
 4 fund under section 328L-3.
 
 5      (d)  The department of the attorney general shall submit a
 
 6 report to the legislature no later than twenty days prior to the
 
 7 convening of each regular session, providing an accounting of the
 
 8 receipts and expenditures of the fund."
 
 9      SECTION 2.  Section 36-27, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "§36-27  Transfers from special funds for central service
 
12 expenses.  Except as provided in this section, and
 
13 notwithstanding any other law to the contrary, from time to time
 
14 the director of finance, for the purpose of defraying the
 
15 prorated estimate of central services expenses of government in
 
16 relation to all special funds, except the:
 
17      (1)  Special summer school and intersession fund under
 
18           section 302A-1310;
 
19      (2)  School cafeteria special funds of the department of
 
20           education;
 
21      (3)  Special funds of the University of Hawaii;
 
22      (4)  State educational facilities improvement special fund;
 

 
 
 
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 1      (5)  Convention center capital and operations special fund
 
 2           under section 206X-10.5;
 
 3      (6)  Special funds established by section 206E-6;
 
 4      (7)  Housing loan program revenue bond special fund;
 
 5      (8)  Housing project bond special fund;
 
 6      (9)  Aloha Tower fund created by section 206J-17;
 
 7     (10)  Domestic violence prevention special fund under section
 
 8           321-1.3;
 
 9     (11)  Spouse and child abuse special account under section
 
10           346-7.5;
 
11     (12)  Spouse and child abuse special account under section
 
12           601-3.6;
 
13     (13)  Funds of the employees' retirement system created by
 
14           section 88-109;
 
15     (14)  Unemployment compensation fund established under
 
16           section 383-121;
 
17     (15)  Hawaii hurricane relief fund established under chapter
 
18           431P;
 
19     (16)  Hawaii health systems corporation special funds;
 
20     (17)  Boiler and elevator safety revolving fund established
 
21           under section 397-5.5;
 
22     (18)  Tourism special fund established under section 201B-11;
 

 
 
 
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 1     (19)  Department of commerce and consumer affairs' special
 
 2           funds;
 
 3     (20)  Compliance resolution fund established under section
 
 4           26-9;
 
 5     (21)  Universal service fund established under chapter 269;
 
 6     (22)  Integrated tax information management systems special
 
 7           fund under section 231-3.2;
 
 8     (23)  Insurance regulation fund under section 431:2-215;
 
 9     (24)  Hawaii tobacco settlement special fund under section
 
10           328L-2; [and]
 
11     (25)  Emergency budget and reserve fund under section 328L-3;
 
12           and
 
13     (26)  Tobacco enforcement special fund established by section
 
14           28-   ;
 
15 shall deduct five percent of all receipts of all other special
 
16 funds, which deduction shall be transferred to the general fund
 
17 of the State and become general realizations of the State.  All
 
18 officers of the State and other persons having power to allocate
 
19 or disburse any special funds shall cooperate with the director
 
20 in effecting these transfers.  To determine the proper revenue
 
21 base upon which the central service assessment is to be
 
22 calculated, the director shall adopt rules pursuant to chapter 91
 

 
 
 
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                                     H.B. NO.           H.D. 1
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 1 for the purpose of suspending or limiting the application of the
 
 2 central service assessment of any fund.  No later than twenty
 
 3 days prior to the convening of each regular session of the
 
 4 legislature, the director shall report all central service
 
 5 assessments made during the preceding fiscal year."
 
 6      SECTION 3.  Section 36-30, Hawaii Revised Statutes, is
 
 7 amended by amending subsection (a) to read as follows:
 
 8      "(a)  Each special fund, except the:
 
 9      (1)  Transportation use special fund established by section
 
10           261D-1;
 
11      (2)  Special summer school and intersession fund under
 
12           section 302A-1310;
 
13      (3)  School cafeteria special funds of the department of
 
14           education;
 
15      (4)  Special funds of the University of Hawaii;
 
16      (5)  State educational facilities improvement special fund;
 
17      (6)  Special funds established by section 206E-6;
 
18      (7)  Aloha Tower fund created by section 206J-17;
 
19      (8)  Domestic violence prevention special fund under section
 
20           321-1.3;
 
21      (9)  Spouse and child abuse special account under section
 
22           346-7.5;
 

 
 
 
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 1     (10)  Spouse and child abuse special account under section
 
 2           601-3.6;
 
 3     (11)  Funds of the employees' retirement system created by
 
 4           section 88-109;
 
 5     (12)  Unemployment compensation fund established under
 
 6           section 383-121;
 
 7     (13)  Hawaii hurricane relief fund established under chapter
 
 8           431P;
 
 9     (14)  Convention center capital and operations special fund
 
10           established under section 206X-10.5;
 
11     (15)  Hawaii health systems corporation special funds;
 
12     (16)  Tourism special fund established under section 201B-11;
 
13     (17)  Compliance resolution fund established under section
 
14           26-9;
 
15     (18)  Universal service fund established under chapter 269;
 
16     (19)  Integrated tax information management systems special
 
17           fund;
 
18     (20)  Insurance regulation fund under section 431:2-215;
 
19     (21)  Hawaii tobacco settlement special fund under section
 
20           328L-2; [and]
 
21     (22)  Emergency and budget reserve fund under section 328L-3;
 
22           and
 

 
 
 
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 1     (23)  Tobacco enforcement special fund established by section
 
 2           28-   ;
 
 3 shall be responsible for its pro rata share of the administrative
 
 4 expenses incurred by the department responsible for the operation
 
 5 supported by the special fund concerned."
 
 6      SECTION 4.  Section 328L-2, Hawaii Revised Statutes, is
 
 7 amended by amending subsection (b) to read as follows:
 
 8      "(b)  The fund shall be used for the purpose of receiving
 
 9 and appropriating the tobacco settlement moneys as follows:
 
10      (1)  Forty per cent shall be appropriated into the emergency
 
11           and budget reserve fund under section [328L-3;] 328L-3,
 
12           provided that the first $500,000 of that forty per cent
 
13           received by the State each fiscal year shall be
 
14           appropriated into the tobacco enforcement special fund
 
15           under section 28-   ;
 
16      (2)  Thirty-five per cent shall be appropriated to the
 
17           department for purpose of section 328L-4; and
 
18      (3)  Twenty-five per cent shall be appropriated into the
 
19           Hawaii tobacco prevention and control trust fund under
 
20           section 328L-5."
 
21      SECTION 5.  There is appropriated out of the tobacco
 
22 enforcement special fund the sum of $500,000, or so much thereof
 

 
 
 
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                                     H.B. NO.           H.D. 1
                                                        S.D. 1
                                                        

 
 1 as may be necessary for fiscal year 2000-2001, to carry out the
 
 2 purposes of the tobacco enforcement special fund.  The sum
 
 3 appropriated shall be expended by the department of the attorney
 
 4 general.
 
 5      SECTION 6.  Statutory material to be repealed is bracketed.
 
 6 New statutory material is underscored.
 
 7      SECTION 7.  This Act shall take effect on July 1, 2000;
 
 8 provided that the amendments made to section 36-27, Hawaii
 
 9 Revised Statutes, by this Act shall not be repealed when that
 
10 section is reenacted on July 1, 2003 by section 9 of Act 142,
 
11 Session Laws of Hawaii 1998.