STAND. COM. REP. NO.  1927

Honolulu, Hawaii

                , 2007

RE:   S.B. No. 1283

      S.D. 2

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 1283, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII TOBACCO SETTLEMENT SPECIAL FUND,"

begs leave to report as follows:

     The purpose of this bill is to support the University of Hawaii (UH) John A. Burns School of Medicine (JABSOM) by allowing UH to use its allotment of moneys from the Hawaii Tobacco Settlement Special Fund to pay for JABSOM's operating expenses, in addition to paying for debt services.

     JABSOM testified in support of this bill.  The Department of Budget and Finance, Department of Health (DOH), and Coalition for a Tobacco Free Hawaii testified in opposition to this measure.

     Your Committee received assurances from the Interim Dean of JABSOM that a long term business plan that incorporates the operational costs of its Kakaako facilities and projected overhead income generated by extramural research and training would soon be completed.  Your Committee looks forward to receiving a copy of the plan when it is completed.

     Your Committee has amended this bill by:

     (1)  Requiring DOH and UH to prepare a detailed accounting of all revenues and expenditures relating to:

          (A)  The 35 percent of moneys appropriated to DOH for purposes of section 328L-4, Hawaii Revised Statutes;

          (B)  Moneys appropriated into the Hawaii Tobacco Prevention and Control Trust Fund;

          (C)  Moneys appropriated into the University Revenue-Undertakings Fund; and

          (D)  Any moneys used for the operating costs of the medical school facility;

     (2)  Changing the effective date to July 1, 2007;

     (3)  Adding a sunset date of June 30, 2011; and

     (4)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1283, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1283, S.D. 2, H.D. 2.

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

____________________________

MARCUS R. OSHIRO, Chair