Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Health, to which was referred H.B. No. 1426 entitled:

begs leave to report as follows:

The purpose of this bill is to provide a dedicated source of funding for substance abuse and treatment programs by creating the Substance Abuse Prevention, Education, and Treatment Special Fund (Special Fund) to collect moneys from a tax surcharge on liquor and cigarettes, and a portion of the proceeds from the sale of property forfeited under the forfeiture law.

The Hawaii Primary Care Association, Blueprint for Change, Community Alliance on Prisons, and several concerned individuals testified in support of this measure. The Department of Budget and Finance, Department of Taxation, Department of the Prosecuting Attorney of the City and County of Honolulu, Office of the Prosecuting Attorney, County of Kauai, and the Wine Institute opposed this measure. Anheuser Busch Companies, the American Heart Association, Tax Foundation of Hawaii, and Coalition for a Tobacco Free Hawaii submitted comments.

Your Committee has amended this bill by:

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 H.B. No. 1426, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1426, H.D. 1, and be referred to the Committee on Finance.