Bill Text: HI HB2341 | 2024 | Regular Session | Amended
Bill Title: Relating To Funding For The Tobacco Enforcement Special Fund.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2024-03-20 - The committee on HHS deferred the measure. [HB2341 Detail]
Download: Hawaii-2024-HB2341-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2341 |
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THIRTY-SECOND LEGISLATURE, 2024 |
H.D. 2 |
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STATE OF HAWAII |
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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:
The legislature further finds that current law 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. Under section 245-26(a)(2), Hawaii
Revised Statutes, a percentage of the cigarette tax stamp fee is transferred
into the tobacco enforcement special fund.
Section 328L-2, Hawaii Revised Statutes, also 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 legislature also finds that 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:
(1) Require the imposition of a stamp fee floor inventory tax on the stock inventory of stamps held by licensees any time the stamp fee is increased under the cigarette and tobacco tax laws prior to the increased stamp fee being assessed and levied; and
(2) Stabilize and increase funding for the tobacco
enforcement unit within the department of the attorney general by increasing:
(A) The amount that the tobacco enforcement special fund can carry over at the end of each fiscal year;
(C) The
amount received from the tobacco settlement that is deposited to the credit of
the tobacco enforcement special fund.
SECTION 2. Chapter 245, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§245- Stamp fee floor inventory tax. Whenever the stamp fee imposed by this chapter is increased, a stamp fee
floor inventory tax shall be imposed on the stock inventory of stamps held by
licensees from the effective date of the Act establishing the stamp fee
increase until the increased stamp fee is to be assessed and levied. The stamp fee floor inventory tax shall be
cents per stamp and be shall paid and reported on a form prescribed by the
department by December 1 of the year before the stamp fee increase is scheduled
to take effect."
SECTION 3. 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] $
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 4.
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]
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]
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 5. 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] $
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 6. Statutory
material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 3000.
Report Title:
Cigarette Tax Stamp Fees; Stamp Fee Floor Inventory Tax; Tobacco Enforcement Special Fund; Hawaii Tobacco Settlement Special Fund
Description:
Establishes a stamp fee floor inventory tax on the stock inventory of stamps held by licensees before any increase in the stamp fee under the cigarette and tobacco tax laws is assessed and levied. Amends the ceiling for the Tobacco Enforcement Special Fund. Amends the cigarette tax stamp fee and the percentage of the cigarette tax stamp fee deposited to the Tobacco Enforcement Special Fund. Amends the amount to be deposited to the credit of the Tobacco Enforcement Special Fund from tobacco settlement moneys. Effective 7/1/3000. (HD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
