Amended in Assembly June 1, 2015

Amended in Assembly April 16, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1396


Introduced by Assembly Member Bonta

(Principal coauthor: Senator Pan)

begin insert

(Coauthor: Assembly Member Wood)

end insert

February 27, 2015


An act to add Sections 30130.53 and 30130.55 to the Revenue and Taxation Code, relating to public health finance, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 1396, as amended, Bonta. Public health finance.

The Cigarette and Tobacco Products Tax Law, the violation of which is a crime, imposes a tax of $0.87 per package of 20 cigarettes on every distributor of cigarettes and a tax on the wholesale cost of tobacco products distributed at a tax rate that is equivalent to the combined rate of all taxes imposed on cigarettes, and at a rate equivalent to $0.50 per pack cigarette tax. Revenues from taxes imposed under this law are deposited in specified accounts. These taxes are inclusive of the taxes imposed under the Tobacco Tax and Health Protection Act of 1988 (Proposition 99) and the California Children and Families Act of 1998 (Proposition 10).

This bill would require moneys collectedbegin insert and deposited in the California Tobacco Tax Act of 2015 Fundend insert from an additional tax to be imposed on the distribution of cigarettes, a related floor stock tax, and a cigarette indicia adjustment taxbegin delete deposited into the California Tobacco Tax Act of 2015 Fund, andend deletebegin insert to beend insert transferred from that fund to the California Children and Families Trust Fund, which is a continuously appropriated fund,begin insert thereby making an appropriation,end insert the Cigarette and Tobacco Products Surtax Fund, the Breast Cancer Fund, and the General Fund, as necessary to offset revenue decreases to those funds directly resulting from additional taxes to be imposed.

This bill would alsobegin delete continuously appropriateend deletebegin insert makeend insert funds of accounts in the California Tobacco Tax Act of 2015 Fundbegin insert availableend insert to specified state entitiesbegin insert upon appropriation by the Legislature toend insert supplement tobacco prevention and control programs, to improve existing programs to provide quality and access to health care programs for families and children, and to supplement funding for the enforcement of laws that regulate the distribution and sale of cigarettes and other tobacco products, as specified.

This bill would require the Department of Justice, the State Department of Public Health, the State Department of Education, the State Department of Health Care Services, and would request the Regents of the University of California, annually to publish an accounting of moneys received from the fund on their respective Internet Web sites.

This bill would become operative only if SB 591 of the 2015-16 Regular Session is also enacted and takes effect on or before January 1, 2016.

Vote: 23. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 30130.53 is added to the Revenue and
2Taxation Code
, to read:

3

30130.53.  

(a) The board shall determine within one year of
4the effective date of this act, and annually thereafter, the effect
5that the additional taxes imposed on cigarettes by this article, and
6the resulting increase in the tax on tobacco products required by
7subdivision (b) of Section 30123, have on the consumption of
8cigarettes and tobacco products in this state. To the extent that a
9decrease in consumption is determined by the board to be a direct
10result of the additional tax imposed by this article, or the resulting
11increase in the tax on tobacco products required by subdivision
12(b) of Section 30123, the board shall determine the fiscal effect
P3    1the decrease in consumption has on the Cigarette and Tobacco
2Products Surtax Fund created by Section 30122 (Proposition 99
3as approved by the voters at the November 8, 1988, statewide
4general election), the Breast Cancer Fund created by Section
530461.6, the California Children and Families Trust Fund created
6by Section 30131 (Proposition 10 as approved by the voters at the
7November 3, 1998, statewide general election), and the General
8Fund with respect to revenues derived from Section 30101.

9(b) Funds shall be transferred from the California Tobacco Tax
10Act of 2015 Fund, to the Cigarette and Tobacco Products Surtax
11Fund, the Breast Cancer Fund, the California Children and Families
12Trust Fund, and the General Fund, to offset the revenue decrease
13directly resulting from imposition of additional taxes by this article.

14(c) Transfers under this section shall be made by the board at
15times as the board determines necessary to further the intent of
16this section.

17

SEC. 2.  

Section 30130.55 is added to the Revenue and Taxation
18Code
, to read:

19

30130.55.  

(a) Notwithstanding any other law, the California
20Tobacco Tax Act of 2015 Fund is a trust fund established solely
21to carry out the purposes set forth in this article, and all revenues
22deposited into the California Tobacco Tax Act of 2015 Fund,
23together with interest earned by the fund, shall be expended only
24in accordance with this article and its purposes.

25(b) (1) Funds in the Tobacco Prevention and Education Account
26begin delete are hereby appropriated with out regard to fiscal yearend deletebegin insert shall be
27available, upon appropriation by the Legislature,end insert
to supplement
28tobacco prevention and control programs as follows:

29(A) begin delete__ end deletebegin insertEighty end insertpercent to the State Department of Public Health.

30(B) begin delete__ end deletebegin insertTen end insertpercent to the State Department of Education.

31(C) begin delete___end deletebegin insertTen end insertpercent to the University of California.

32(2) Funds in the Tobacco Disease Related Health Care Account
33begin delete are hereby appropriated without regard to fiscal yearsend deletebegin insert shall be
34availableend insert
to the State Department of Health Carebegin delete Servicesend deletebegin insert Services,
35upon appropriation by the Legislature,end insert
to improve existing
36programs to provide quality and access to health care programs
37for families and children pursuant to Chapter 7 (commencing with
38Section 14000) to Chapter 8.9 (commencing with Section 14700),
39inclusive, of Part 3 of Division 9 of the Welfare and Institutions
40Code.

P4    1(3) Funds in the Tobacco Law Enforcement Accountbegin delete are hereby
2appropriated without regard to fiscal yearsend delete
begin insert shall be availableend insert to
3the board, the Department of Justice, and the State Department of
4Publicbegin delete Healthend deletebegin insert Health, upon appropriation by the Legislature,end insert for
5the purpose of supplementing funding for the enforcement of laws
6that regulate the distribution and sale of cigarettes and other
7tobacco products, including, but not limited to, laws that prohibit
8cigarette smuggling, counterfeiting, selling untaxed tobacco, selling
9tobacco without a proper license, and selling tobacco to minors,
10and enforcing tobacco-related laws, court judgments, and
11settlements.

12(c) Not more thanbegin delete 2end deletebegin insert 5end insert percent of the funds received from the
13California Tobacco Tax Act of 2015 Fund shall be used by any
14state recipient for administrative costs.

15(d) The Department of Justice, the State Department of Public
16Health, the State Department of Education, and the State
17Department of Health Care Services shall, and the Regents of the
18University of California are requested to, on an annual basis,
19publish on their respective Internet Web sites an accounting of
20moneys received from the California Tobacco Tax Act of 2015
21Fund and how the moneys were spent.

22

SEC. 3.  

This act shall become operative only if Senate Bill
23591 of the 2015-16 Regular Session is also enacted and takes effect
24on or before January 1, 2016.



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