STAND. COM. REP. NO. 789

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1008
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
1008 entitled: 

     "A BILL FOR AN ACT RELATING TO TOBACCO LIABILITY,"

begs leave to report as follows:

     The purpose of this bill is to neutralize any advantage that
non-settling tobacco manufacturers may gain by requiring tobacco
manufacturers who determine not to enter into the November 23,
1998, Master Settlement Agreement with the State to establish a
reserve fund.

     The Department of the Attorney General testified in support
of this measure.

     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.
1008 and recommends that it pass Third Reading.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair