STAND. COM. REP. NO. 2148

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2496
                                        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. 2496 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 change the allocation of
tobacco settlement moneys in the Hawaii tobacco settlement
special fund and to clarify the expenditure of those moneys by
the Department of Health (DOH).

     Your Committee received testimony in support of this measure
from the DOH, Good Beginnings Alliance, Prevent Child Abuse
Hawaii, Hawaii Community Foundation, Hawaii Family Support
Center-Healthy Start, American Association of Retired Persons,
and a private individual.  Testimony in opposition was received
from the Department of Budget and Finance and Hawaii Nurses'
Association.  Informational testimony was received from the
Department of Human Services, Tax Foundation of Hawaii, and a
private individual.

     This measure changes the amount allocated for the emergency
and budget reserve fund from forty to twenty per cent, and the
amount allocated to the DOH from thirty-five to fifty-five per
cent.  This measure also requires the DOH to expend ten per cent
of those moneys received to support early childhood education and
care, and ten per cent to support substance abuse treatment
services for pregnant women, families, and teenagers.

 
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     Your Committee finds that early childhood education and
substance abuse treatment services should benefit from a portion
of the tobacco settlement moneys by having a dedicated funding
source.  Many of the today's social and educational problems in
Hawaii stem from lack of adequate resources and services for
early childhood education and substance abuse.  This measure is
intended to redress that imbalance.  Your Committee believes that
the tobacco settlement moneys is an ideal source of funding for
these kinds of programs, and that another opportunity like this
may not happen again. 

     Your Committee has amended this measure to:

     (1)  Allow the DOH to transfer to the Department of Human
          Services a portion of the ten per cent of moneys
          designated for expenditure by the DOH to support early
          childhood education and care; and

     (2)  Make technical, nonsubstantive changes to reflect
          preferred drafting style, clarity, and consistency.

     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. 2496, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2496,
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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