CONFERENCE COMMITTEE REP. NO. 169

Honolulu, Hawaii

, 2021

RE: H.B. No. 1296

H.D. 1

S.D. 2

C.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 1296, H.D. 1, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO STATE FUNDS,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Repeal the Hawaii Tobacco Prevention and Control Trust Fund on June 30, 2025;

(2) Specify that the Hawaii Tobacco Settlement Special Fund monies shall only be deposited into the University Revenue-Undertakings Fund until July 1, 2033;

(3) Prohibit any contract for the management of the Hawaii Tobacco Prevention and Control Trust Fund monies from extending beyond June 30, 2025; and

(4) Transfer all unencumbered monies remaining in the Hawaii Tobacco Prevention and Control Trust Fund on June 30, 2025, to the general fund.

Your Committee on Conference has amended this measure by:

(1) Establishing a $4,300,000 expenditure cap on the Hawaii Tobacco Settlement Fund;

(2) Requiring the Department of Health to provide a report to the legislature on the expenditure of monies in the Hawaii Tobacco Prevention and Control Trust Fund no later than twenty days prior to the convening of the Regular Sessions of 2022, 2023, 2024, 2025, and 2026;

(3) Inserting an emergency appropriation to address budget shortfalls relating to payroll and other current expenses for the State Comprehensive Emergency Medical Services System;

(4) Inserting an appropriation to fund and establish two permanent and five temporary full-time equivalent positions in the Office of the Governor;

(5) Requiring all departments, including the University of Hawaii, to reimburse the State for the fringe benefit costs of employees whose positions are funded by a special fund, rather than the general fund;

(6) Specifying that the cigarette tax revenues deposited to the credit of the Cancer Research Special Fund shall only be used for capital expenditures and only until July 1, 2041;

(7) Ceasing deposits of cigarette tax revenues into the Emergency Medical Services Special Fund on July 1, 2021;

(8) Establishing a Threat Assessment Team Program within Hawaii State Fusion Center of the Office of Homeland Security;

(9) Inserting an appropriation to fund a statutorily established administrative assistant position in the Department of Human Resources Development;

(10) Changing the effective date to July 1, 2021; and

(11) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 1296, H.D. 1, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 1296, H.D. 1, S.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ JARRETT KEOHOKALOLE Chair	____________________________ RYAN I. YAMANE Co-Chair
____________________________ DONNA MERCADO KIM Co-Chair	____________________________ GREGG TAKAYAMA Co-Chair
____________________________ DONOVAN M. DELA CRUZ Co-Chair	____________________________ SYLVIA LUKE Co-Chair