STAND. COM. REP. NO. 2146

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2457
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Health and Human Services, to which was
referred S.B. No. 2457 entitled: 

     "A BILL FOR AN ACT RELATING TO HAWAII TOBACCO SETTLEMENT
     MONEYS,"

begs leave to report as follows:

     The purpose of this measure is to clarify that any
expenditure of moneys by the Department of Health (DOH) of
tobacco settlement moneys for health promotion and disease
prevention programs shall not supplant or diminish the funding of
programs by the State's general fund.

     This measure also requires the concurrence of the Director
of Health for the nonprofit entity selected to administer the
Hawaii tobacco prevention and control trust fund to expend moneys
from the trust fund, and corrects a typographical error with
regard to the fiscal year appropriation in Act 304, Session Laws
of Hawaii 1999.

     Your Committee received testimony in support of this measure
from the Department of Health, Good Beginnings Alliance, American
Heart Association, Hawaii Family Support Center-Healthy Start,
Coalition for a Tobacco Free Hawaii, Injury Prevention Advisory
Committee, Keiki Injury Prevention Coalition, Hawaii Nurses'
Association, and Ka'u Rural Health Community Association, Inc.
Testimony in opposition was received from the Department of
Budget and Finance.


 
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     Your Committee finds that the Governor is reducing the
budget of the DOH for health programs in an amount equal to the
tobacco settlement moneys allocated to the DOH.  This measure
clarifies your Committee's original intent in enacting chapter
328L, Hawaii Revised Statutes, providing for the disposition of
the Hawaii tobacco settlement moneys, that the tobacco settlement
moneys would be in addition to budgeted moneys so that there
would be more funding for health programs.  Your Committee
believes that it would be anomalous for the State to receive a
windfall of moneys intended for health programs if those programs
do not benefit with more funding.

     Your Committee has amended this measure to clarify that the
nonprofit entity selected to administer the Hawaii tobacco
prevention and control trust fund may expend any portion of the
moneys, including principal and interest, from the trust fund
without the concurrence of the Director of Health.  Your
Committee has also made a technical, nonsubstantive amendment to
reflect preferred drafting style.

     As affirmed by the record of votes of the members of your
Committee on Health and Human Services that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 2457, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2457,
S.D. 1, and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Health and Human
                                   Services,



                                   ______________________________
                                   SUZANNE CHUN OAKLAND, Chair

 
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