REPORT TITLE:
CHILDREN'S PROGRAMS - TOBACCO
FUND


DESCRIPTION:
This bill increases the percentage of moneys from the tobacco
settlement fund to the Department of Health.  Additional types of
programs are described for possible funding by the department of
health, including child abuse prevention programs, child and
adolescent mental health programs, and health promotion and
disease prevention programs targeted specifically for children.
The rainy day fund is also sunseted.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        3186
THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO REALLOCATING TOBACCO SETTLEMENT FUND MONEYS TO
   CHILDREN'S PROGRAMS. 


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

 1      SECTION 1.  Rather than setting aside funds in a "Rainy Day
 
 2 Fund," this bill proposes to reallocate all of the tobacco
 
 3 settlement money to prevention programs that target children.
 
 4 These programs include maternal child health and child
 
 5 development programs, programs in child abuse prevention,
 
 6 promotion of healthy lifestyles, child and adolescent mental
 
 7 health programs and drug and alcohol abuse treatment programs.
 
 8      SECTION 2.  Chapter 328L, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10 
 
11                           "CHAPTER 328L
 
12                 HAWAII TOBACCO SETTLEMENT MONEYS
 
13      §328L-1 Definitions.  Whenever used in this chapter, unless
 
14 the context otherwise requires:
 
15      "Children's health program" means health care for needy
 
16 children.
 
17      "Department" means the department of health.
 
18      "Director" means the director of health.
 
19      "Health promotion and disease prevention programs" means
 

 
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 1 those public health programs that attempt to reduce resources
 
 2 spent on treating preventable illness and functional impairment,
 
 3 enhance the quality of life, and reduce disparities in the health
 
 4 status of populations.
 
 5      "Tobacco prevention and control" means activities or
 
 6 programs that attempt to reduce tobacco consumption.
 
 7      "Tobacco settlement moneys" refers to moneys received by the
 
 8 State pursuant to the tobacco master settlement agreement.
 
 9      §328L-2  Hawaii tobacco settlement special fund.(a)  There
 
10 is established in the state treasury the Hawaii tobacco
 
11 settlement special fund into which shall be deposited:
 
12           (1)  All tobacco settlement moneys; and
 
13           (2)  All interest and earnings accruing from the
 
14                investment of moneys in the fund.
 
15 The Hawaii tobacco settlement special fund shall be administered
 
16 by the department.
 
17      (b)  The fund shall be used for the purpose of receiving and
 
18 appropriating the tobacco settlement moneys [as follows:
 
19           [(1) Forty per cent shall be appropriated into the
 
20                emergency and budget reserve fund under section
 
21                328L-3;]
 
22      [(2)](1)  [Thirty-five]Seventy-five per cent shall be
 
23                appropriated] to the department for purpose of
 

 
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 1                section [328L-4]328L-3. and
 
 2      [(3)](2)  Twenty-five per cent shall be appropriated into
 
 3                the Hawaii tobacco prevention and control trust
 
 4                fund under section [328L-5]328L-4.
 
 5      [§328L-3  Emergency and budget reserve fund.(a)  There is
 
 6 established in the state treasury the emergency budget and
 
 7 reserve fund which shall be a special fund administered by the
 
 8 director of finance, into which shall be deposited:
 
 9           (1)  Forty per cent of the moneys received from the
 
10                tobacco settlement moneys under section 328L-
 
11                2(b)(1);
 
12           (2)  Appropriations made by the legislature to the
 
13                fund.
 
14      (b)  All interest earned from moneys in the emergency and
 
15 budget reserve fund shall be credited to the general fund.
 
16      (c)  Expenditures from the emergency and budget reserve fund
 
17 shall be a temporary supplemental source of funding for the State
 
18 during times of emergency, economic downturn, or unforeseen
 
19 reduction in revenues.  No expenditures shall be made from the
 
20 emergency and budget reserve fund except pursuant to
 
21 appropriations.  The general appropriations bill or the
 
22 supplemental appropriations bill, as defined in section 9 of
 
23 article VII of the Constitution of the State of Hawaii, shall not
 

 
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 1 be used to appropriate moneys from the emergency and budget
 
 2 reserve fund.  The governor, through an appropriations bill, may
 
 3 recommend expenditures from the emergency and budget reserve fund
 
 4 by setting forth the purposes of the expenditures consistent with
 
 5 subsection (d), the amounts, and the reasons justifying the
 
 6 necessity for the appropriations.
 
 7      (d)  The legislature may make appropriations from the fund
 
 8 for the following purposes:
 
 9           (1)  To maintain levels of programs determined to be
 
10                essential to the public health, safety, and
 
11                welfare;
 
12           (2)  To provide for counter cyclical economic and
 
13                employment programs in periods of economic
 
14                downturn;
 
15           (3)  To restore facilities destroyed or damaged or
 
16                services disrupted by disaster in any county; and
 
17           (4)  To meet other emergencies when declared by the
 
18                governor or determined to be urgent by the
 
19                legislature.
 
20      Any act making appropriations from the emergency and budget
 
21 reserve fund shall include a declaration of findings and purposes
 
22 setting forth the purposes, the amounts, and the reasons why the
 
23 appropriations are necessary and shall require a two-thirds
 

 
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 1 majority vote of each house of the legislature.
 
 2      (e)  Appropriations for the following purposes from the
 
 3 emergency and budget reserve fund are specifically prohibited:
 
 4           (1)  To meet expenses of the legislature; 
 
 5           (2)  To provide for salary adjustments for officials
 
 6                appointed pursuant to article V, section 6 or
 
 7                article VI, section 3 of the Constitution of the
 
 8                State of Hawaii and for others whose salaries are
 
 9                directly related to salaries of these officials;
 
10                and
 
11           (3)  To fund cost items in any collective bargaining
 
12                contract.]
 
13      §[328L-4]328L-3  Use of funds appropriated to the
 
14 department.  The department, immediately upon receipt of the
 
15 [thirty-five per cent of]seventy-five per cent of the moneys
 
16 appropriated pursuant to section 328L-2(b)[(2)](1) shall:
 
17      (1)  Transfer up to ten per cent of the total moneys
 
18           received by the State from tobacco settlement moneys to
 
19           the department of human services for the children's
 
20           health insurance program; and
 
21      (2)  Expend the remainder of the moneys received by the
 
22           department for health promotion and disease prevention
 
23           programs targeted for children, including but not
 

 
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 1           limited to, maternal child health and child development
 
 2           programs, in particular, programs in child abuse
 
 3           prevention, promotion of healthy lifestyles (including
 
 4           fitness, nutrition, and tobacco control), child and
 
 5           adolescent mental health programs, drug and alcohol
 
 6           abuse treatment programs and prevention oriented public
 
 7           health programs.
 
 8      For purposes of paragraph (2), the director shall convene an
 
 9 advisory group that shall be separate from the tobacco prevention
 
10 and control advisory board, to strategically plan the development
 
11 and implementation of preventive systems to achieve measurable
 
12 outcomes and to make recommendations for the expenditure of these
 
13 moneys.  The advisory group shall be composed of nine members
 
14 with expertise in the programs under paragraph (2), and shall be
 
15 selected at the discretion of the director.
 
16      (3)  The moneys appropriated pursuant to §328L-2(b)(1) shall
 
17           only be used to fund programs that meet the criteria in
 
18           paragraph (2).
 
19      §[328L-5]328L-4  Hawaii tobacco prevention and control trust
 
20 fund.  (a)  There is established the Hawaii tobacco prevention
 
21 and control trust fund as a separate fund of a nonprofit entity
 
22 having a board of directors and qualifying under section
 
23 501(c)(3) of the Internal Revenue Code of 1986, as amended, into
 

 
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 1 which shall be deposited twenty-five per cent of moneys received
 
 2 as provided under section 328L-2(b)[(3)](2).  The director of
 
 3 health with the concurrence of the governor, shall select, in
 
 4 accordance with law, the entity based upon the proven record of
 
 5 accomplishment of the entity in administering a similar trust
 
 6 fund. 
 
 7      (b)  Notwithstanding that the Hawaii tobacco and prevention
 
 8 and control trust fund is established within a private entity,
 
 9 the department of budget and finance shall have oversight
 
10 authority over the fund and may make periodic financial audits of
 
11 the fund; provided that the director of finance may contract with
 
12 a certified public accountancy firm for this purpose.  The
 
13 director of health with the concurrence of the governor in their
 
14 sole discretion may rescind the selection of the entity.  If the
 
15 selection of the entity in rescinded, moneys in the trust fund
 
16 shall revert back to the State and shall be deemed to be trust
 
17 moneys.
 
18      (c)  The entity selected under subsection (a) shall expend
 
19 moneys from the Hawaii tobacco prevention and control trust fund
 
20 for tobacco prevention and control, including but not limited to,
 
21 reducing cigarette smoking and tobacco use among youth and adults
 
22 through education and enforcement activities, and controlling and
 
23 preventing chronic diseases where tobacco use is a risk factor.
 

 
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 1      (d)  The Hawaii tobacco prevention and control trust fund
 
 2 may receive appropriations, contributions, grants, endowments, or
 
 3 gifts in cash or otherwise from any source, including the State,
 
 4 corporations or other businesses, foundations, government,
 
 5 individuals, and other interested parties; provided that any
 
 6 appropriations made by the State shall not supplant or diminish
 
 7 the funding of existing tobacco prevention and control programs
 
 8 or any health related programs funded in whole or in part by the
 
 9 State.
 
10      (e)  The assets of the Hawaii tobacco prevention and control
 
11 trust fund shall consist of:
 
12           (1)  Moneys appropriated under section 328L-
 
13                2(b)[(3)](2);
 
14           (2)  Moneys appropriated to the Hawaii tobacco
 
15                prevention and control trust fund by the state,
 
16                county, or federal government;
 
17           (3)  Private contributions of cash or property; and
 
18           (4)  Income and capital gains earned by the trust fund.
 
19      (f)  The aggregate principal sum deposited in the Hawaii
 
20 tobacco prevention and control trust fund shall be invested by
 
21 the entity selected under subsection (a) in a manner intended to
 
22 maximize the rate of return on investment of the trust fund
 
23 consistent with the objective of preserving the trust fund's
 

 
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 1 principal.
 
 2      (g)  If the entity selected under subsection (a) is
 
 3 dissolved, the director of health, with the concurrence of the
 
 4 governor, shall select a successor entity.  If the Hawaii tobacco
 
 5 prevention and control trust fund is terminated, the moneys
 
 6 remaining in the trust fund shall revert back to the State and
 
 7 shall be deemed to be trust moneys.
 
 8      (h)  The administration of the Hawaii tobacco prevention and
 
 9 control trust fund shall be advised by the tobacco prevention and
 
10 control advisory board created under section 328L-6.
 
11      §328L-6  Tobacco prevention and control advisory board.(a)
 
12 There is established a tobacco prevention and control advisory
 
13 board under the department for administrative purposes.
 
14      (b)  The tobacco prevention and control advisory board shall
 
15 consist of members who are involved in tobacco prevention and
 
16 control.  Membership of the board shall be as follows:
 
17           (1)  One member of the governor's staff, appointed by
 
18                the governor;
 
19           (2)  One member to be appointed by the governor from a
 
20                list of two names submitted by the president of
 
21                the senate;
 
22           (3)  One member to be appointed by the governor from a
 
23                list of two names submitted by the speaker of the
 

 
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 1                house of representatives;
 
 2           (4)  The director or the director's designee;
 
 3           (5)  The superintendent of education or the
 
 4                superintendent's designee;
 
 5           (6)  Three members having demonstrated interest in and
 
 6                having backgrounds beneficial to controlling and
 
 7                preventing the use of tobacco, appointed by the
 
 8                director of health; and
 
 9           (7)  Three members representing populations at risk for
 
10                tobacco use, appointed by the governor.
 
11      (c)  Members shall:
 
12           (1)  Be appointed or designated, as applicable, without
 
13                regard to section 26-34;
 
14           (2)  Serve without compensation; and
 
15           (3)  Serve for a term of three years. 
 
16      (d)  The tobacco prevention and control advisory board, in
 
17 collaboration with the department, shall develop a strategic plan
 
18 for tobacco prevention and control, including:
 
19           (1)  Developing and implementing effective and cost
 
20                efficient programs, including health promotion and
 
21                disease prevention;
 
22           (2)  Developing adequate standards and benchmarks by
 
23                which measures of program success under paragraph
 

 
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 1                (1) of this subsection may be appropriately
 
 2                evaluated; and
 
 3           (3)  Assessing the effectiveness of programs engaged in
 
 4                health promotion and disease prevention.
 
 5      The strategic plan shall be in writing and shall be a public
 
 6 document.
 
 7      (e)  The tobacco prevention and control advisory board shall
 
 8 advise the on the administration of the Hawaii tobacco prevention
 
 9 and control trust fund."
 
10      SECTION 3.  Act 304, Session Laws of Hawaii 1999, is amended
 
11 by repealing section 5.
 
12      ["There is appropriated out of the Hawaii tobacco settlement
 
13 special fund the sum of $5,777,903, or so much thereof as may be
 
14 necessary, for fiscal year 1999-2000, and the sum of $15,436,031,
 
15 or so much thereof as may be necessary, for fiscal year 2000-
 
16 2001, to be deposited into the the emergency and budget reserve
 
17 fund."]
 
18      SECTION 4.  Act 304, Session Laws of Hawaii 1999, is amended
 
19 by amending section 6 to read as follows:
 
20      "There is appropriated out of the Hawaii tobacco settlement
 
21 special fund the sum of $5,055,665, or so much thereof as may be
 
22 necessary, for fiscal year 1999-2001, and the sum of
 
23 [$13,506,527] $28,942,558, or so much thereof as may be
 
24 necessary, for fiscal year 2000-2001, to the department of health
 

 
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 1 to be expended for the purposes specified in section[328L-4]328L-
 
 2 3, Hawaii Revised Statutes.  The sums appropriated shall be
 
 3 expended by the department of health.
 
 4      Of the appropriation for fiscal years 1999-2000, up to the
 
 5 sum of $1,400,000, and for fiscal year 2000-2001, up to the sum
 
 6 of $3,859,000, shall be transferred to the department of human
 
 7 services to be expended for the children's health insurance
 
 8 program; provided that the amount of moneys to be transferred
 
 9 shall not exceed the amount of moneys needed by the childrens
 
10 health insurance program.
 
11      SECTION 5.  Statutory material to be repealed is bracketed.
 
12 New statutory material is underscored.
 
13      SECTION 6.  This Act shall take effect upon its approval.
 
14 
 
15                       INTRODUCED BY:  ___________________________