Final
Staff Presentations on Tobacco Tax Bills
HOUSE
COMMITTEE ON
HEALTH AND HUMAN SERVICES
Votes:
Action Taken:
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03:34 PM -- Legislative Staff Presentations on the Tobacco Tax Bills
Tom Dunn, Legislative Council Staff, distributed and discussed a table showing the expected revenues from Amendment 35, the new tobacco tax passed by the voters in 2004 (Attachment I). He discussed the impact of cigarette price elasticity, increased cost of cigarettes, cross-border sales, and internet sales of cigarettes. He stated tax revenue considerations for both cigarettes and tobacco products were very similar. He answered questions about why internet sales were not included in revenue estimations and revisions to tax revenue estimations.
03:43 PM
Michele Hanigsberg, Office of Legislative Legal Services, distributed and discussed a side-by-side comparison of the five tobacco tax implementation bills (Attachment J). She discussed the Constitutional amendment that created the new tobacco tax. She answered questions about how money may be distributed to programs each year. She stated identical provisions among the bills and constitutional provisions are not included in the side-by-side comparison. She described each bill's allocation of tax revenues into six designated funds: Tobacco Tax Cash Fund; General Fund/Old Age Pension Fund & Local Governments; Health Care Expansion Fund; Primary Care Fund; Tobacco Education Program Fund; and the Prevention, Early Detection, and Treatment Fund. She discussed Medicaid and Child Health Plan Plus (CHP+) expansion provisions for children, pregnant women, and families. She discussed the bills' Tobacco Education Program Fund and its relation to the current Tobacco Education, Prevention, and Cessation Grants (created with money from the tobacco Master Settlement Agreement). Finally, Ms. Hanigsberg discussed provisions in House Bill 1262 regarding the Prevention, Early Detection, and Treatment Fund. She answered questions about tobacco cessation programs.