Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Health and Human Services, to which was referred S.B. No. 1515 entitled:

beg leave to report as follows:

The purpose of this measure is to reinstate the Hawaii Tobacco Settlement Special Fund's exemption from the assessment of central services and administrative expenses.

The American Heart Association, American Cancer Society, Coalition for a Tobacco Free Hawaii, and the Tobacco Prevention and Control Advisory Board submitted testimony in support of this measure. The Department of Budget and Finance submitted testimony in opposition. The Department of Health and the American Lung Association of Hawaii submitted comments.

Your Committees find that the Hawaii Tobacco Settlement Special Fund was previously exempt from the five per cent deduction. The deduction amounts to several million dollars each year that could be spent on programs and services that improve the health of Hawaii's residents. As the Coalition for a Tobacco Free Hawaii highlighted in its testimony, the intent of the fund was to offset the costs that the State incurs as a result of tobacco use. The Centers for Disease Control and Prevention recommends that Hawaii invest between $10,778,000 and $23,448,000 annually to establish effective tobacco prevention and control programs. In 2004, approximately $8,000,000 was made available by the State for tobacco use.

The American Heart Association estimates that there are close to 1,100 tobacco-related deaths in Hawaii each year. Further, over twenty-four per cent of Hawaii high school students reported being current cigarette smokers, and the numbers are rising. The funds should be spent on prevention programs and other measures aimed at discouraging individuals, especially youth, from smoking and assisting others who want to quit.

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. 1515 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.