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 collected and deposited in the California Tobacco Tax Act of 2015 Fund from an additional tax to be imposed on the distribution of cigarettes, a related floor stock tax, and a cigarette indicia adjustment tax to be transferred from that fund to the California Children and Families Trust Fund, which is a continuously appropriated fund, thereby making an appropriation, 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 also make funds of accounts in the California Tobacco Tax Act of 2015 Fund available to specified state entities upon appropriation by the Legislature to 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: 2⁄3. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 30130.53 is added to the Revenue and
2Taxation Code, to read:
(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
P3 1result of the additional tax imposed by this article, or the resulting
2increase in the tax on tobacco products required by subdivision
3(b) of Section 30123, the board shall determine the fiscal effect
4the decrease in consumption has on the Cigarette and Tobacco
5Products Surtax Fund created by Section 30122 (Proposition 99
6as approved by the voters at the November 8, 1988, statewide
7general election), the Breast Cancer Fund created by Section
830461.6, the California Children and Families Trust Fund created
9by Section 30131 (Proposition 10 as approved by the voters at the
10November 3, 1998, statewide general election), and the General
11Fund with respect to revenues derived from Section 30101.
12(b) Funds shall be transferred from the California Tobacco Tax
13Act of 2015 Fund, to the Cigarette and Tobacco Products Surtax
14Fund, the Breast Cancer Fund, the California Children and Families
15Trust Fund, and the General Fund, to offset the revenue decrease
16directly resulting from imposition of additional taxes by this article.
17(c) Transfers under this section shall be made by the board at
18times as the board determines necessary to further the intent of
Section 30130.55 is added to the Revenue and Taxation
21Code, to read:
(a) Notwithstanding any other law, the California
23Tobacco Tax Act of 2015 Fund is a trust fund established solely
24to carry out the purposes set forth in this article, and all revenues
25deposited into the California Tobacco Tax Act of 2015 Fund,
26together with interest earned by the fund, shall be expended only
27in accordance with this article and its purposes.
28(b) (1) Funds in the Tobacco Prevention and Education Account
29shall be available, upon appropriation by the Legislature, to
30supplement tobacco prevention and control programs as follows:
31(A) Eighty percent to the State Department of Public Health.
32(B) Ten percent to the State Department of Education.
33(C) Ten percent to the University of California.
34(2) Funds in the Tobacco Disease Related Health Care Account
35shall be available to the State Department of Health Care Services,
36upon appropriation by the Legislature, to improve existing
37programs to provide quality and access to health care programs
38for families and children pursuant to Chapter 7 (commencing with
39Section 14000) to Chapter 8.9 (commencing with Section 14700),
P4 1inclusive, of Part 3 of Division 9 of the Welfare and Institutions
3(3) Funds in the Tobacco Law Enforcement Account shall be
4available to the board, the Department of Justice, and the State
5Department of Public Health, upon appropriation by the
6Legislature, for the purpose of supplementing funding for the
7enforcement of laws that regulate the distribution and sale of
8cigarettes and other tobacco products, including, but not limited
9to, laws that prohibit cigarette smuggling, counterfeiting, selling
10untaxed tobacco, selling tobacco without a proper license, and
11selling tobacco to minors, and enforcing tobacco-related laws,
12court judgments, and settlements.
13(c) Not more than 5 percent of the funds received from the
14California Tobacco Tax Act of 2015 Fund shall be used by any
15state recipient for administrative costs.
16(d) The Department of Justice, the State Department of Public
17Health, the State Department of Education, and the State
18Department of Health Care Services shall, and the Regents of the
19University of California are requested to, on an annual basis,
20publish on their respective Internet Web sites an accounting of
21moneys received from the California Tobacco Tax Act of 2015
22Fund and how the moneys were spent.
This act shall become operative only if Senate Bill
24591 of the 2015-16 Regular Session is also enacted and takes effect
25on or before January 1, 2016.