STAND. COM. REP. NO. 161

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 612
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred S.B. No.
612, entitled: 

     "A BILL FOR AN ACT RELATING TO TOBACCO LIABILITY,"

begs leave to report as follows:

     The purpose of this bill is to require tobacco manufacturers
that do not participate in the master settlement agreement with
the State to deposit funds into an escrow fund to pay judgments
or settlements on future claims brought against those
manufacturers.

     Your Committee finds that cigarette smoking presents serious
financial burdens to the State, which may have an obligation to
provide medical assistance to citizens with smoking-related
diseases.  Your Committee further finds that such burdens should
be borne by the tobacco product manufacturers rather than by the
State.  Requiring tobacco product manufacturers to either
participate in the settlement with the State or ensure that they
have sufficient funds available to pay future claims by Hawaii
smokers will help to place the financial burden of cigarette
smoking on tobacco product manufacturers instead of the State.

     Testimony in support of this measure was submitted by the
Attorney General and one private individual.

     As affirmed by the record of votes of the members of your
Committee on Judiciary that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.

 
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                                   STAND. COM. REP. NO. 161
                                   Page 2


612, and recommends that it pass Second Reading and be referred
to the Committee on Ways and Means.

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



                                   ______________________________
                                   AVERY B. CHUMBLEY, Co-Chair



                                   ______________________________
                                   MATTHEW M. MATSUNAGA, Co-Chair

 
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