STAND. COM. REP. NO.  321

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 225

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Health, to which was referred H.B. No. 225 entitled:

"A BILL FOR AN ACT RELATING TO CIGARETTE TAX,"

begs leave to report as follows:

     The purpose of this bill is to ensure proper distribution of taxes collected from the sale of cigarettes by:

     (1)  Clarifying that the cigarette tax collected pursuant to section 245-15, Hawaii Revised Statutes, will be assessed on a per cigarette basis; and

     (2)  Ensuring that the cigarette taxes collected are earmarked for designated special funds through the year 2011 and beyond.

     The Department of Health, Department of Taxation, Honolulu Emergency Services Department, University of Hawaii System, Hawaii Primary Care Association, Coalition for a Tobacco Free Hawaii, American Heart Association of Hawaii, American Cancer Society, Queen's Medical Center, and Hawaii Pacific Health supported this bill.  The Tax Foundation of Hawaii submitted comments on this measure.

     Your Committee has amended this measure by:

     (1)  Changing the effective date of subsequent increases in the cigarette tax to begin after September 30, instead of September 29 of each respective year; and

     (2)  Making technical, nonsubstantive changes for clarity, consistency, and style.

     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. 225, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 225, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Health,

____________________________

JOSHUA B. GREEN, M.D., Chair