Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 2843 entitled:

begs leave to report as follows:

The purpose of this bill is to protect the health, safety, and welfare of Hawaii's citizens from the devastating effects of Crystal Methamphetamine, more commonly known as Ice. Among other things, this bill:

Out of Prison Services, Community Alliance on Prisons, and a concerned citizen testified in support of this bill. Hawaii Youth Services Network and Hawaii Substance Abuse Coalition testified in support of the intent of the bill. The American Cancer Society, American Heart Association, American Lung Association, The Center, Coalition for a Drug Free Hawaii, Coalition for a Tobacco Free Hawaii, Drug Policy Action Group, Hawaii Medical Services Association, Hawaii Island Tobacco-Free Partnership, the Hawaii State Department of Health, Kaiser Permanente, Target Back, Aiea High School Peer Education Program, Kaimuki High School Peer Education Program, REAL-Hawaii's Youth Movement Against Tobacco Use, and numerous concerned citizens testified in opposition to the bill.

Your Committee finds that tobacco use, particularly among Hawaii's youth, poses serious health problems for our residents. Prevention and education programs designed to deter young people and adults from smoking are critically necessary.

In 1999, the State established the Hawaii Tobacco Prevention and Control Trust Fund (Trust Fund) to spend moneys appropriated to the Trust Fund for programs designed to reduce smoking and tobacco use among youth and adults. The Trust Fund has not been able to use all the funds allocated to it due to delays in implementing a comprehensive program and the lack of capacity of the community-based organizations to implement best practices programs. The Trust Fund has accumulated over $30 million in the corpus and receives approximately 7 percent in annual investment return. In the nearly five years of its existence, the Trust Fund has spent $5 million. In 2003, it spent $3 million, even though the Trust Fund allocated $6 million. The Trust Fund also received grant requests totaling $2.4 million and funded about $1 million over a two-year cycle. In 2004, $7 million has been allocated by the Trust Fund for various programs.

The current appropriation to the Trust Fund is approximately $5 million. Under the proposed bill, the Trust Fund will lose half this appropriation. However, the total revenues available for expenditure per year will be nearly $5 million, including interest from the corpus. This amount appears to be sufficient in the short run to fund the programs in existence and will not reduce the Trust Fund corpus.

Your Committee is reluctant to divert money away from the Trust Fund and recognizes the long-term effect such a reduction will have in the Trust Fund's ability to carry out its mission. However, your Committee also finds that tobacco is a gateway substance that can lead to addiction to illicit substances, such as Ice.

Numerous studies indicate that tobacco is a trigger for illicit drug use. ("Programs Including Nicotine Addiction as Part of Treatment," Alcoholism and Drug Abuse Weekly, May 2003.) Ice abuse is a public health epidemic in Hawaii that requires immediate attention. Therefore, your Committee concludes that use of tobacco settlement funds is appropriate for treatment and prevention programs directed towards Ice.

Your Committee regretfully finds that fifty percent of the funds currently appropriated from the tobacco settlement moneys should be reallocated to the treatment and prevention of Ice abuse.

Your Committee has amended the bill by:

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 H.B. No. 2843, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2843, H.D. 1, and be referred to the Committee on Finance.