STAND. COM. REP. NO. 748-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2422
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
2422 entitled: 

     "A BILL FOR AN ACT RELATING TO THE ENFORCEMENT OF THE
     TOBACCO SETTLEMENT AGREEMENT,"

begs leave to report as follows:

     The purpose of this bill is to ensure that legal and
enforcement activities continue in the aftermath of the 1998
settlement with the major tobacco products manufacturers.  This
bill:

     (1)  Creates the Tobacco Enforcement Special Fund (Fund) to
          enforce compliance with and enforcement of the Master
          Settlement Agreement, the provisions of the Tobacco
          Liability Act, and tobacco prevention programs;

     (2)  Specifies that the first $500,000 from all tobacco
          moneys received by the State each fiscal year shall be
          deposited into the Fund;

     (3)  Exempts the Fund from central service expenses and
          special fund administrative expenses; and

     (4)  Appropriates $500,000 to carry out the purposes of the
          Fund.


 
 
 
 
                                 STAND. COM. REP. NO. 748-00
                                 Page 2

 
     The State Attorney General testified in support of this
bill.  The Coalition for a Tobacco Free Hawaii and the Hawaii
Nurses' Association opposed passage of this measure.

     Your Committee has amended this bill by:

     (1)  Deleting the amount to be deposited into the Fund each
          fiscal year as well as the appropriation for fiscal
          year 2000-2001; and

     (2)  Making technical, nonsubstantive amendments to correct
          technical drafting errors.

     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 H.B. No.
2422, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as H.B. No. 2422, H.D. 1.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair