REPORT TITLE:
Tobacco Settlement 

DESCRIPTION:
Provides that funds received by DOH from the Tobacco Settlement
for health promotion and disease prevention programs shall not
supplant or diminish the funding of existing programs.
Establishes reporting requirements.  Transfers 35% of the tobacco
settlement moneys to the newly established DOH Tobacco Special
Fund, without an appropriation act or budget proviso, and
clarifies that these moneys can only be used for the Healthy
Hawaii Initiative and children's health insurance programs.  Adds
one member of the House and one member of the Senate to the DOH
advisory group.  Exempts the DOH Tobacco Special Fund from
requirements of sections 36-27 and 36-30. (HB2277 CD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2277
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                S.D. 1
STATE OF HAWAII                                            C.D. 1
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO THE HAWAII TOBACCO SETTLEMENT SPECIAL FUND.


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 328L, Hawaii Revised Statutes, is
 
 2 amended by adding a new section to be appropriately designated
 
 3 and to read as follows:
 
 4      "§328L-     Reporting requirements.  The department of
 
 5 health shall submit to the legislature an annual report of the
 
 6 previous fiscal year's:
 
 7      (1)  Beginning balance;
 
 8      (2)  Revenues;
 
 9      (3)  Expenditures; and
 
10      (4)  Ending balance,
 
11 as of June 30, of the Hawaii tobacco settlement special fund, the
 
12 emergency and budget reserve fund, the department of health
 
13 tobacco special fund, and the Hawaii tobacco prevention and
 
14 control trust fund, no later than twenty days prior to the
 
15 convening of each regular session."
 
16      SECTION 2.  Section 36-27, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "§36-27  Transfers from special funds for central service
 
19 expenses.  Except as provided in this section, and
 

 
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 1 notwithstanding any other law to the contrary, from time to time,
 
 2 the director of finance, for the purpose of defraying the
 
 3 prorated estimate of central service expenses of government in
 
 4 relation to all special funds, except the:
 
 5      (1)  Special summer school and intersession fund under
 
 6           section 302A-1310;
 
 7      (2)  School cafeteria special funds of the department of
 
 8           education;
 
 9      (3)  Special funds of the University of Hawaii;
 
10      (4)  State educational facilities improvement special fund;
 
11      (5)  Convention center capital and operations special fund
 
12           under section 206X-10.5;
 
13      (6)  Special funds established by section 206E-6;
 
14      (7)  Housing loan program revenue bond special fund;
 
15      (8)  Housing project bond special fund;
 
16      (9)  Aloha Tower fund created by section 206J-17;
 
17     (10)  Domestic violence prevention special fund under section
 
18           321-1.3;
 
19     (11)  Spouse and child abuse special account under section
 
20           346-7.5;
 
21     (12)  Spouse and child abuse special account under section
 
22           601-3.6;
 

 
 
 
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 1     (13)  Funds of the employees' retirement system created by
 
 2           section 88-109;
 
 3     (14)  Unemployment compensation fund established under
 
 4           section 383-121;
 
 5     (15)  Hawaii hurricane relief fund established under chapter
 
 6           431P;
 
 7     (16)  Hawaii health systems corporation special funds;
 
 8     (17)  Boiler and elevator safety revolving fund established
 
 9           under section 397-5.5;
 
10     (18)  Tourism special fund established under section 201B-11;
 
11     (19)  Department of commerce and consumer affairs' special
 
12           funds;
 
13     (20)  Compliance resolution fund established under section
 
14           26-9;
 
15     (21)  Universal service fund established under chapter 269;
 
16     (22)  Integrated tax information management systems special
 
17           fund under section 231-3.2;
 
18     (23)  Insurance regulation fund under section 431:2-215;
 
19     (24)  Hawaii tobacco settlement special fund under section
 
20           328L-2; [and]
 
21     (25)  Emergency budget and reserve fund under section 328L-3;
 
22           and
 
23     (26)  Department of health tobacco special fund under section
 
24           328L-4;
 

 
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 1 shall deduct five per cent of all receipts of all other special
 
 2 funds, which deduction shall be transferred to the general fund
 
 3 of the State and become general realizations of the State.  All
 
 4 officers of the State and other persons having power to allocate
 
 5 or disburse any special funds shall cooperate with the director
 
 6 in effecting these transfers.  To determine the proper revenue
 
 7 base upon which the central service assessment is to be
 
 8 calculated, the director shall adopt rules pursuant to chapter 91
 
 9 for the purpose of suspending or limiting the application of the
 
10 central service assessment of any fund.  No later than twenty
 
11 days prior to the convening of each regular session of the
 
12 legislature, the director shall report all central service
 
13 assessments made during the preceding fiscal year."
 
14      SECTION 3.  Section 36-30, Hawaii Revised Statutes, is
 
15 amended by amending subsection (a) to read as follows:
 
16      "(a)  Each special fund, except the:
 
17      (1)  Transportation use special fund established by section
 
18           261D-1;
 
19      (2)  Special summer school and intersession fund under
 
20           section 302A-1310;
 
21      (3)  School cafeteria special funds of the department of
 
22           education;
 
23      (4)  Special funds of the University of Hawaii;
 

 
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 1      (5)  State educational facilities improvement special fund;
 
 2      (6)  Special funds established by section 206E-6;
 
 3      (7)  Aloha Tower fund created by section 206J-17;
 
 4      (8)  Domestic violence prevention special fund under section
 
 5           321-1.3;
 
 6      (9)  Spouse and child abuse special account under section
 
 7           346-7.5;
 
 8     (10)  Spouse and child abuse special account under section
 
 9           601-3.6;
 
10     (11)  Funds of the employees' retirement system created by
 
11           section 88-109;
 
12     (12)  Unemployment compensation fund established under
 
13           section 383-121;
 
14     (13)  Hawaii hurricane relief fund established under chapter
 
15           431P;
 
16     (14)  Convention center capital and operations special fund
 
17           established under section 206X-10.5;
 
18     (15)  Hawaii health systems corporation special funds;
 
19     (16)  Tourism special fund established under section 201B-11;
 
20     (17)  Compliance resolution fund established under section
 
21           26-9;
 
22     (18)  Universal service fund established under chapter 269;
 

 
 
 
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 1     (19)  Integrated tax information management systems special
 
 2           fund;
 
 3     (20)  Insurance regulation fund under section 431:2-215;
 
 4     (21)  Hawaii tobacco settlement special fund under section
 
 5           328L-2; [and]
 
 6     (22)  Emergency and budget reserve fund under section 328L-3;
 
 7           and
 
 8     (23)  Department of health tobacco special fund under section
 
 9           328L-4;
 
10 shall be responsible for its pro rata share of the administrative
 
11 expenses incurred by the department responsible for the
 
12 operations supported by the special fund concerned."
 
13      SECTION 4.  Section 328L-2, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "[[]§328L-2[]]  Hawaii tobacco settlement special fund.(a)
 
16 There is established in the state treasury the Hawaii tobacco
 
17 settlement special fund into which shall be deposited:
 
18      (1)  All tobacco settlement moneys; and
 
19      (2)  All interest and earnings accruing from the investment
 
20           of moneys in the fund.
 
21 The Hawaii tobacco settlement special fund shall be administered
 
22 by the department.
 

 
 
 
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 1      (b)  The fund shall be used for the purpose of receiving and
 
 2 [appropriating] immediately transferring the tobacco settlement
 
 3 moneys as follows:
 
 4      (1)  Forty per cent shall be [appropriated] transferred into
 
 5           the emergency and budget reserve fund under section
 
 6           328L-3;
 
 7      (2)  Thirty-five per cent shall be [appropriated to the
 
 8           department for purpose of] transferred into the
 
 9           department of health tobacco special fund under section
 
10           328L-4; and
 
11      (3)  Twenty-five per cent shall be [appropriated]
 
12           transferred into the Hawaii tobacco prevention and
 
13           control trust fund under section 328L-5.
 
14      (c)  Notwithstanding any law or administrative procedure to
 
15 the contrary, transfers made from the Hawaii tobacco settlement
 
16 special fund to the emergency budget and reserve fund, the
 
17 department of health tobacco special fund, and the Hawaii tobacco
 
18 prevention and control trust fund for purposes of subsection (b)
 
19 may be made without an appropriation act or budget proviso;
 
20 provided that the transfer into each of the funds is in the same
 
21 percentage as specified in subsection (b)."
 
22      SECTION 5.  Section 328L-4, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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 1      "[[]§328L-4[]  Use of funds appropriated to the department.]
 
 2 Department of health tobacco special fund.  (a)  There is
 
 3 established the department of health tobacco special fund.
 
 4 Tobacco settlement moneys transferred under section 328L-2 to the
 
 5 department shall be deposited into the department of health
 
 6 tobacco special fund.
 
 7      (b)  The department, [immediately] upon receipt of the
 
 8 thirty-five per cent of moneys [appropriated] transferred
 
 9 pursuant to section 328L-2(b)(2) shall:
 
10      (1)  Transfer up to ten per cent of the total moneys
 
11           received by the State from tobacco settlement moneys to
 
12           the department of human services to be expended for the
 
13           state children's health insurance program[;], which
 
14           shall include services for immigrant and other
 
15           children; and
 
16      (2)  Expend the remainder of the moneys received by the
 
17           department for health promotion and disease prevention
 
18           programs, including but not limited to[,] maternal and
 
19           child health and child development programs, promotion
 
20           of healthy lifestyles (including fitness, nutrition,
 
21           and tobacco control), and prevention oriented public
 
22           health programs[.]; provided that the moneys received
 
23           or expended under this paragraph shall not supplant or
 

 
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 1           diminish the funding of any existing programs funded in
 
 2           whole or in part by the State.
 
 3      (c)  Moneys transferred pursuant to this section shall only
 
 4 be used for:
 
 5      (1)  The purposes in subsection (b)(2), to be known as the
 
 6           healthy Hawaii initiative; and
 
 7      (2)  The state children's health insurance program, which
 
 8           shall include services for immigrant and other
 
 9           children.
 
10      (d)  For purposes of [paragraph (2),] subsection (b)(2), the
 
11 director shall convene an advisory group that shall be separate
 
12 from the tobacco prevention and control advisory board, to
 
13 strategically plan the development and implementation of
 
14 preventive systems to achieve measurable outcomes and to make
 
15 recommendations for the expenditure of these moneys.  The
 
16 advisory group shall be composed of [nine] eleven members [with]
 
17 as follows:
 
18      (1)  Nine members who shall have expertise in the programs
 
19           under [paragraph (2),] subsection (b)(2), and shall be
 
20           selected at the discretion of the director[.];
 
21      (2)  One member of the house of representatives who shall be
 
22           appointed by the speaker of the house of
 
23           representatives; and
 

 
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 1      (3)  One member of the senate who shall be appointed by the
 
 2           president of the senate."
 
 3      SECTION 6.  Act 304, Session Laws of Hawaii 1999, as amended
 
 4 by Act 5, Session Laws of Hawaii 2000, is amended by amending
 
 5 section 6 to read as follows:
 
 6      "SECTION 6.  There is appropriated out of the Hawaii tobacco
 
 7 settlement special fund the sum of $5,055,665 or so much thereof
 
 8 as may be necessary for fiscal year 1999-2000 and the sum of
 
 9 [$13,506,527,] $19,506,527 or so much thereof as may be necessary
 
10 for fiscal year 2000-2001 to the department of health to be
 
11 expended for the purposes specified in section 328L-4, Hawaii
 
12 Revised Statutes.
 
13      The sums appropriated shall be [expended by the department
 
14 of health.] deposited into the department of health tobacco
 
15 special fund; provided that:
 
16      (1)  Of the appropriation for fiscal year 1999-2000, up to
 
17           the sum of $1,400,000, and for fiscal year 2000-2001,
 
18           up to the sum of [$3,859,000,] $6,100,000, shall be
 
19           transferred to the department of human services to be
 
20           expended for the state children's health insurance
 
21           program[; provided that the], which shall include
 
22           services for immigrant and other children; and
 

 
 
 
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 1      (2)  The amount of moneys to be transferred shall not exceed
 
 2           the amount of moneys needed by the state children's
 
 3           health insurance program[.], which shall include
 
 4           services for immigrant and other children."
 
 5      SECTION 7.  Statutory material to be repealed is bracketed.
 
 6 New statutory material is underscored.
 
 7      SECTION 8.  This Act shall take effect on July 1, 2000.