House Bill 2741 would increase the cigarette tax from $1 per pack to $1.40 per pack in three increments to raise an extra $16 million a year for the state. Increases take effect in October, when the tax goes from $1 to $1.20; in July 2003, when it increases from $1.20 to $1.30; and in July 2004, when it increases to $1.40 per pack.

As of this morning, a pack of cigarettes sold for about $5 each at several retail stores.

The governor also signed Senate Bill 2763, which establishes a statewide birth defects program and a special fund to support it. The new law also increases the marriage license fee from $50 to $60, with the additional $10 going to the Hawai'i birth defects special fund.

And he signed House Bill 2638, which establishes the Hawai'i long-term care financing program the Hawai'i Long-Term Care Benefits Fund. A board of trustees will design the program and determine how much the state would collect for such a tax and and a means of collection the long-term care taxes that would be deposited into the fund.

Advocates called the bill a good first step in addressing Hawai'i's long-term care costs. "This is really very, very important, not only for senior citizens, but for their families as well," Cayetano said.