Bill Text: HI SB3030 | 2024 | Regular Session | Introduced


Bill Title: Relating To Funding For The Tobacco Enforcement Special Fund.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-26 - Referred to HHS, WAM/JDC. [SB3030 Detail]

Download: Hawaii-2024-SB3030-Introduced.html

THE SENATE

S.B. NO.

3030

THIRTY-SECOND LEGISLATURE, 2024

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO FUNDING FOR THE TOBACCO ENFORCEMENT SPECIAL FUND.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The tobacco enforcement special fund supports the tobacco enforcement unit within the department of the attorney general to administer, monitor, and enforce the tobacco master settlement agreement and related Hawaii laws, including chapters 486P and 675, Hawaii Revised Statutes.  The tobacco enforcement unit is also tasked with enforcing the cigarette tax stamp program pursuant to chapter 245, Hawaii Revised Statutes.

     Section 28-15(c), Hawaii Revised Statutes, currently mandates that moneys in excess of $500,000 remaining in the tobacco enforcement special fund at the close of each fiscal year lapse to the credit of the state general fund.  Section 245-26(a)(2), Hawaii Revised Statutes, transfers a percentage of the cigarette tax stamp fee into the tobacco enforcement special fund.  Section 328L-2, Hawaii Revised Statutes, mandates that, of all tobacco settlement moneys received by the State in each fiscal year, the first $350,000 be deposited in the state treasury to the credit of the tobacco enforcement special fund.

     The amount of cigarette tax stamp revenues deposited into the tobacco enforcement special fund has noticeably decreased in recent years.  This trend is expected to continue.  To maintain the tobacco enforcement unit's diligent enforcement efforts and to minimize the risk of losing the master settlement agreement annual payments, it is critical that the unit receive adequate and continuous funding.

     The purpose of this Act is to stabilize and increase funding for the tobacco enforcement unit within the department of the attorney general by amending:

     (1)  The amount of funds that the tobacco enforcement special fund can carry over at the end of each fiscal year;

     (2)  The cigarette tax stamp fee and the percentage of that fee allotted to the tobacco enforcement special fund; and

     (3)  The sum of moneys received from the tobacco settlement that is deposited to the credit of the tobacco enforcement special fund.

     SECTION 2.  Section 28-15, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  All unencumbered and unexpended moneys in excess of [$500,000] $750,000 remaining on balance in the tobacco enforcement special fund at the close of June 30 of each year shall lapse to the credit of the state general fund."

     SECTION 3.  Section 245-26, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Stamps shall be sold at their denominated values, plus a stamp fee of [1.7] 2.2 per cent of the denominated value of each stamp sold, composed of the aggregate of:

     (1)  .2 per cent of the denominated value of the stamp to pay for the cost to the State of providing the stamps, with that amount to be deposited to the credit of the department of taxation's cigarette tax stamp administrative special fund; and

     (2)  [1.5] Two per cent of the denominated value of the stamp to pay for the cost of enforcing the stamp tax, with that amount to be deposited to the credit of the department of the attorney general's tobacco enforcement special fund;

provided that the department by rule may modify the stamp fee to reflect actual costs incurred by the State in providing the stamps."

     SECTION 4.  Section 328L-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  There is established in the state treasury the Hawaii tobacco settlement special fund into which shall be deposited:

     (1)  All tobacco settlement moneys; and

     (2)  All interest and earnings accruing from the investment of moneys in the fund;

provided that of all tobacco settlement moneys received by the State each fiscal year, the sum representing the first [$350,000] $750,000 of those moneys shall first be deposited in the state treasury in each fiscal year to the credit of the tobacco enforcement special fund.  The Hawaii tobacco settlement special fund shall be administered by the department."

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act, upon its approval, shall take effect on July 1, 2024.

 

INTRODUCED BY:

_____________________________

 

 

BY REQUEST


 


 

Report Title:

Cigarette Tax Stamp Fees; Tobacco Enforcement Special Fund; Hawaii Tobacco Settlement Special Fund

 

Description:

Amends the amount of funding for the Tobacco Enforcement Special Fund administered by the Department of the Attorney General by amending the amount of funds that the Tobacco Enforcement Special Fund can carry over at the end of the fiscal year; increasing the cigarette tax stamp fee and concurrently increasing the percentage of the cigarette tax stamp fee deposited to the Tobacco Enforcement Special Fund; and amending the amount of funds to be deposited to the credit of the Tobacco Enforcement Special Fund from tobacco settlement moneys.  Effective 7/1/2024.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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