STAND. COM. REP. NO. 874-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2764
                                     S.D. 1
                                     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 Health, to which was referred S.B. No.
2764, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO TOBACCO PRODUCTS REPORT,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Establish a reporting requirement to enforce a state
          law that requires tobacco product manufacturers who
          sell tobacco products in the State to deposit certain
          amounts into escrow based on the number of cigarettes
          sold; and

     (2)  Relieve tobacco manufacturers who participate in the
          Master Settlement Agreement of double reporting
          requirements.

     The Department of the Attorney General (AG), the Hawaii
Nurses' Association, and an individual testified in support of
this measure.

     After careful consideration, your Committee has amended this
measure by deleting its contents and inserting the substantive
provisions reflected in a similar bill, H.B. No. 2423.  This bill
passed the House after public hearings in your Committees on
Health and Judiciary and Hawaiian Affairs earlier this session.


 
 
                                 STAND. COM. REP. NO. 874-00
                                 Page 2

 
     As amended, this bill establishes a reporting mechanism to
assist the AG enforce the requirement that tobacco product
manufacturers who did not participate in the national Master
Settlement Agreement are to deposit certain amounts into escrow
based on the number of cigarettes sold in Hawaii.

     As affirmed by the record of votes of the members of your
Committee on Health that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2764, S.D. 1, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2764, S.D.
1, H.D. 1, and be referred to the Committee on Judiciary and
Hawaiian Affairs.

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



                                   ______________________________
                                   ALEXANDER C. SANTIAGO, Chair