Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Health, to which was referred H.B. No. 1992 entitled:

begs leave to report as follows:

The purpose of this bill is to provide increased healthcare in rural areas of the state by increasing the cigarette tax by 2.5 cents per cigarette to fund the maintenance and operation of federally qualified community health centers.

The American Heart Association of Hawaii, Hawaii Primary Care Association, and Waianae Coast Comprehensive Health Center supported this bill. The Department of Taxation opposed this measure. The Tax Foundation of Hawaii submitted comments.

Your Committee finds that tobacco use causes an overwhelming number of health problems throughout the state and, therefore, funds generated from the sale of tobacco products should be tapped to assist in treating those health problems caused by its use.

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. 1992, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1992, H.D. 1, and be referred to the Committee on Finance.