STAND. COM. REP. NO. 958

Honolulu, Hawaii

, 2021

RE: H.B. No. 1296

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 1296 entitled:

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

begs leave to report as follows:

The purpose of this measure is to:

(1) Repeal the Tobacco Enforcement Special Fund, Hawaii Tobacco Settlement Special Fund, and Hawaii Tobacco Prevention and Control Trust Fund and transfer the unencumbered balances of these funds to the general fund; and

(2) Appropriate general fund monies into the University Revenue-Undertakings Fund.

Your Committee received testimony in support of this measure from the Hawaii Smokers Alliance and fifteen individuals. Your Committee received testimony in opposition to this measure from the Department of the Attorney General; Department of Health; Department of Budget and Finance; University of Hawai‘i System; University of Hawai‘i at Mānoa John A. Burns School of Medicine; University of Hawai‘i Student Health Advisory Council; Office of the Prosecuting Attorney of the County of Hawai‘i; American Heart Association; We Are One, Inc.; Blue Zones Project; Hawaii Substance Abuse Coalition; American Academy of Pediatrics, Hawaii Chapter; Hawaii Disability Rights Center; Friends of the Medical School; Kapi‘olani Smokefree Families Program; Kapi‘olani Medical Center for Women and Children; Hawaii COPD Coalition; Hawaii Primary Care Association; Boys & Girls Clubs of Maui; Hamakua-Kohala Health; Campaign for Tobacco-Free Kids; Coalition for a Tobacco-Free Hawai‘i; American Cancer Society Cancer Action Network; Hawai‘i Community Foundation; HOPE Services; Kōkua Kalihi Valley Comprehensive Family Services; American Lung Association in Hawaii; Keiki Injury Prevention Coalition; Adventist Health Castle; and numerous individuals. Your Committee received comments on this measure from the Tax Foundation of Hawaii.

Your Committee has amended this measure by:

(1) Retaining existing tobacco settlement monies deposit allocations in statute;

(2) Retaining in statute the Tobacco Enforcement Special Fund and Hawaii Tobacco Settlement Special Fund;

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

(4) Appropriating $5,700,000 to the Department of Health for tobacco prevention and control purposes; and

(5) Making technical, nonsubstantive amendments for the purposes of 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 H.B. No. 1296, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1296, H.D. 1.

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

____________________________

SYLVIA LUKE, Chair