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                                   STAND. COM. REP. NO. 3237

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2423
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 2423, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO TOBACCO PRODUCTS REPORT,"

begs leave to report as follows:

     The purpose of this bill is to establish a reporting
requirement for tobacco product manufacturers.

     This reporting requirement will assist the Attorney General
in the enforcement of the terms of the Master Settlement
Agreement, codified as Chapter 675, Hawaii Revised Statutes, and
does not apply to manufacturers who participated in the
settlement agreement.

     Your Committee finds that under the terms of legislation
passed last year in accordance with Hawaii's settlement with
certain tobacco manufacturers, the tobacco manufacturers who did
not participate in the settlement are required to deposit
payments into escrow based on the level of their Hawaii sales.
To ensure that the non-settling manufacturers deposit the correct
amount into escrow, the State needs a mechanism to verify the
amount of tobacco products sold by them in Hawaii.  This bill
provides that mechanism.


 
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                                   STAND. COM. REP. NO. 3237
                                   Page 2


     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2423, S.D. 1, and recommends that it pass Third Reading.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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