Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Health and Human Services, to which was referred H.B. No. 2844, H.D. 1, entitled:

beg leave to report as follows:

The purpose of this measure is to allocate the one-half-cent increase in the tobacco tax that takes effect on July 1, 2004, to prevention and treatment programs and services for crystal methamphetamine.

Testimony in support of this measure was received from Hawaii Youth Services Network, Healthy Mothers, Healthy Babies Coalition of Hawaii, National Association of Social Workers, Coalition for a Tobacco Free Hawaii, Hawaii Substance Abuse Coalition, Maui Youth and Family Services, Community Alliance on Prisons, American Lung Association, and six concerned individuals. Testimony in opposition was received from the Department of Taxation, Department of Budget and Finance, Hawaii Korean-American Growers Association, and the Hawaii Food Industry Association. Comments were received from the Tax Foundation of Hawaii and American Heart Association.

Your Committees find that the crystal methamphetamine, or "ice," epidemic in Hawaii has devastated the lives of many individuals and families, resulting in child and spousal abuse, increased crime, and homelessness. Your Committees also find that earmarking a portion of the tobacco tax is an innovative option that will help fund both crystal methamphetamine prevention and treatment, and tobacco treatment, which your Committee notes is a gateway drug to other, more serious, drugs.

Your Committees have amended this measure by deleting its contents and replacing it with the contents of S.B. No. 3235, S.D. 1, which increases the tobacco tax that goes into effect July 1, 2004, by an addition one-half cent to 7.5 cents, and then allocating one cent for prevention and treatment programs and services for crystal methamphetamine.

As affirmed by the records of votes of the members of your Committees on Health and Human Services that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2844, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2844, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.