Report Title:

Tobacco Settlement Funds; UH Medical School; Operating Expenses

Description:

Allows University of Hawaii to use its allotment of moneys from the Hawaii tobacco settlement special fund to pay for operating expenses of the new medical school in addition to paying debt service.

THE SENATE	S.B. NO.	1283
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII

A BILL FOR AN ACT

relating to the hawaii tobacco settlement special fund.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 328L-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The fund shall be used for the purpose of receiving, allocating, and appropriating the tobacco settlement moneys as follows:

     (1)  Twenty-four and one-half per cent shall be appropriated into the emergency and budget reserve fund under section 328L-3;

     (2)  Thirty-five per cent shall be appropriated to the department for purposes of section 328L-4;

     (3)  Twelve and one-half per cent shall be appropriated into the Hawaii tobacco prevention and control trust fund under section 328L-5; and

     (4)  Twenty-eight per cent shall be appropriated into the university revenue-undertakings fund created in section [[]304A‑2167[]], to be applied [solely] to [the]:

(A) The payment of the principal of and interest on, and to generate required coverage, if any, for, revenue bonds issued by the board of regents of the University of Hawaii to finance the cost of construction of a university health and wellness center, including a new medical school facility, to be situated on the island of Oahu, for the succeeding fiscal year; and

(B) The payment of annual operating expenses incurred by the new medical school facility;

              provided that any moneys in excess of the amount required to pay principal of and interest on, and to generate required coverage, if any, for [such] the revenue bonds in any fiscal year, shall be transferred as follows:

         [(A)]  (i) To the emergency and budget reserve fund under section 328L-3, eighty per cent of the excess; and

        [(B)] (ii) To the Hawaii tobacco prevention and control trust fund under section 328L-5, twenty per cent of the excess; in the succeeding fiscal year."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

INTRODUCED BY:

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