§328L-5  Hawaii tobacco prevention andcontrol trust fund.  (a)  There is established the Hawaii tobaccoprevention and control trust fund as a separate fund of a nonprofit entityhaving a board of directors and qualifying under section 501(c)(3) of the InternalRevenue Code of 1986, as amended, into which shall be deposited moneys receivedas provided under section 328L-2(b)(3).  The director of health with theconcurrence of the governor, shall select, in accordance with law, the entitybased upon the proven record of accomplishment of the entity in administering asimilar trust fund.

(b)  Notwithstanding that the Hawaii tobacco prevention and control trust fund is established within a private entity, thedepartment of budget and finance shall have oversight authority over the fundand may make periodic financial audits of the fund; provided that the directorof finance may contract with a certified public accountancy firm for thispurpose.  The director of health with the concurrence of the governor in theirsole discretion may rescind the selection of the entity.  If the selection ofthe entity [is] rescinded, moneys in the trust fund shall revert back to theState and shall be deemed to be trust moneys.

(c)  The entity selected under subsection (a),for each fiscal year, may expend up to fifty per cent of the total market valueof the Hawaii tobacco prevention and control trust fund on the preceding June30, for tobacco prevention and control, including but not limited to, reducingcigarette smoking and tobacco use among youth and adults through education andenforcement activities, and controlling and preventing chronic diseases wheretobacco is a risk factor.

(d)  The Hawaii tobacco prevention and controltrust fund may receive appropriations, contributions, grants, endowments, orgifts in cash or otherwise from any source, including the State, corporationsor other businesses, foundations, government, individuals, and other interestedparties; provided that any appropriations made by the State shall not supplantor diminish the funding of existing tobacco prevention and control programs orany health related programs funded in whole or in part by the State.

(e)  The assets of the Hawaii tobaccoprevention and control trust fund shall consist of:

(1)  Moneys appropriated under section 328L-2(b)(3);

(2)  Moneys appropriated to the Hawaii tobaccoprevention and control trust fund by the state, county, or federal government;

(3)  Private contributions of cash or property; and

(4)  Income and capital gains earned by the trustfund.

(f)  The aggregate principal sum deposited inthe Hawaii tobacco prevention and control trust fund shall be invested by theentity selected under subsection (a) in a manner intended to maximize the rateof return on investment of the trust fund consistent with the objective ofpreserving the trust fund’s principal.

(g)  If the entity selected under subsection(a) is dissolved, the director of health, with the concurrence of the governor,shall select a successor entity.  If the Hawaii tobacco prevention and controltrust fund is terminated, the moneys remaining in the trust fund shall revertback to the State and shall be deemed to be trust moneys.

(h)  The administration of the Hawaii tobaccoprevention and control trust fund shall be advised by the tobacco preventionand control advisory board created under section 328L-6. [L 1999, c 304, pt of§2; am L Sp 2001 3d, c 14, §3]