STAND. COM. REP. 1137

Honolulu, Hawaii

, 2003

RE: S.B. No. 1279

S.D. 2

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 1279, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TOBACCO,"

begs leave to report as follows:

The purpose of this bill is to consolidate into one fund tax stamp fees collected for enforcement of Chapter 245, Hawaii Revised Statutes (HRS), and funds received for enforcement of the tobacco Master Settlement Agreement (MSA) and Chapter 675, HRS.

Your Committee received testimony in support of this measure from the Attorney General, with proposed amendments.

Your Committee finds this measure is needed to ensure that our State receives its rightful share of Master Settlement Agreement funds and stamp tax revenues.

Your Committee has amended this measure, in accordance with the Attorney General's testimony by:

(1) Adding a new section 8 to close a loophole in existing law that has permitted some companies that refused to join the Master Settlement Agreement to avoid responsibility under Chapter 675, HRS;

(2) Adding a new section 9 to assure that the language of Chapter 675, HRS, will revert to its original form in the event of a successful challenge to this bill's amendments; and

(3) Amending the effective date for repeal of the cigarette tax stamp enforcement special fund to enable sufficient time for a transfer of funds to the tobacco enforcement special fund.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1279, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1279, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

 

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

 

____________________________

ERIC G. HAMAKAWA, Chair