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 S.B. No. 3235 entitled:

beg leave to report as follows:

The purpose of this measure is to allocate a one-half-cent increase in the tobacco tax to prevention and treatment programs and services for crystal methamphetamine.

Testimony in support of this measure was received from a member of the Hawaii County Council, the National Association of Social Workers, the American Lung Association, and the Coalition for a Tobacco Free Hawaii. Testimony in opposition to this measure was received from the Department of Taxation. Comments on this measure were received from the American Heart Association.

Your Committees find that the increase in the tobacco tax for treatment and prevention programs is an effective way to raise revenues to combat the State's crystal methamphetamine epidemic. This new source of revenue will ensure that current public health services are maintained, while at the same time funding additional treatment and prevention programs to deal with the crystal methamphetamine crisis.

Your Committees have amended this measure to:

Your Committees also finds that crystal methamphetamine should be identified as a priority with regard to receipt of funds.

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 S.B. No. 3235, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3235, S.D. 1, and be referred to the Committee on Ways and Means.