STAND. COM. REP. NO. 2765

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2496
                                        S.D. 2




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

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 2496, S.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill 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.

     This measure changes the amount allocated for the emergency
and budget reserve fund from forty per cent to twenty per cent,
and the amount allocated to the Department of Health from thirty-
five per cent to fifty-five per cent.  This measure also requires
the Department of Health 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; provided that the
Department of Health may transfer a portion of these moneys to
the Department of Human Services for the same purposes.

     Upon further consideration, and for purposes of promoting
further discussion, your Committee has amended this bill to
change the following percentages to blank amounts by deleting the
proposed:

 
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                                   STAND. COM. REP. NO. 2765
                                   Page 2


     (1)  Twenty per cent to be transferred to the emergency and
          budget reserve fund (on page 1, line 5 and page 2, line
          1);

     (2)  Fifty-five per cent to be appropriated to the
          Department of Health (on page 1, line 8 and page 2,
          line 9);

     (3)  Ten per cent to be spent for early childhood education
          and care and youth programs (p. 2, line 15); and

     (4)  Ten per cent to be spent for substance abuse and
          treatment services for pregnant women (p. 2, line 21).

     Your Committee particularly wishes to emphasize and clarify
that the amendments made to this bill do not signal any reduction
in your Committee's commitment to fight against increased tobacco
use.  On the contrary, your Committee remains steadfast in its
resolve to support efforts to prevent tobacco use and remedy its
deleterious effects while at the same time effectively
reallocating resources to address pressing health and education
issues such as substance abuse and early childhood education and
care.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2496, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 2496,
S.D. 2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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