STAND. COM. REP. NO. 1084-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. 2434
                                     S.D. 2
                                     H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:


     Your Committees on Health and Public Safety and Military
Affairs, to which was referred S.B. No. 2434, S.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO SUBSTANCE ABUSE,"

beg leave to report as follows:

     The purpose of this bill is to establish a Substance Abuse
Multi-Agency Coordinating Council (SAMACC) to be administratively
attached to the Department of Health (DOH) to develop statewide
policy to set the general direction for substance abuse
prevention and treatment programs.

     Testimony in support of this bill was submitted by the
Hawaii Hotel Association, Government Efficiency Teams, Inc.,
American Civil Liberties Union of Hawaii Foundation, and the 
Hawaii Substance Abuse Coalition.  The Legislative Center,
Judiciary, the Hawaii Paroling Authority, Department of
Accounting and General Services, the Attorney General, the
Department of the Prosecuting Attorney of the City and County of
Honolulu, and DOH supported the intent of the bill.  The
Department of Budget and Finance opposed this bill.  The Office
of Youth Services, Hawaii Liquor Wholesalers Association, and
Legislative Information Services of Hawaii commented on this
bill.

     Your Committees have amended this bill by replacing its
contents with the substantive provisions of H.B. No. 2894, H.D.
1, a similar bill that was reported out earlier this session by
your Committees on Health and Public Safety and Military Affairs.

     As amended, this bill: 

 
 
                                 STAND. COM. REP. NO. 1084-00
                                 Page 2

 
     (1)  Establishes SAMACC;

     (2)  Establishes the Substance Abuse Programs Revolving Fund
          (Fund) and specifies that all moneys collected under
          sections 244D-2, 244D-17, 245-2, 245-15, and 706-  ,
          Hawaii Revised Statutes, are to be deposited into the
          Fund;

     (3)  Increases the liquor permit fee from $2.50 to $500;

     (4)  Increases the liquor permit renewal fee from $2.50 to
          $250;

     (5)  Increases the duplicate liquor permit fee from 50 cents
          to $50;

     (6)  Increases the gallonage tax on six categories of liquor
          to specified amounts;

     (7)  Increases the wholesaler or dealer cigarette and
          tobacco license fee from $2.50 to $250;

     (8)  Increases the excise tax on cigarettes from five cents
          to six cents; 

     (9)  Makes drug demand reduction assessments and the related
          fund permanent;

     (10) Repeals the State Advisory Commission on Drug Abuse and
          Controlled Substances; and
     
     (11) Appropriates out of the general revenues the sum of
          $150,000 to be deposited into the Fund for fiscal year
          2000-2001.

     As affirmed by the records of votes of the members of your
Committees on Health and Public Safety and Military Affairs that
are attached to this report, your Committees are in accord with
the intent and purpose of S.B. No. 2434, S.D. 2, as amended
herein, and recommend that it pass Second Reading in the form
attached hereto as S.B. No. 2434, S.D. 2, H.D. 1, and be referred
to the Committee on Finance.


 
 
 
 
 
 
                                 STAND. COM. REP. NO. 1084-00
                                 Page 3

 
                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Health and
                                   Public Safety and Military
                                   Affairs,

                                   
                                   
                                   
                                   
______________________________     ______________________________
NESTOR GARCIA, Chair               ALEXANDER C. SANTIAGO, Chair