Bill Text: CA AB1396 | 2015-2016 | Regular Session | Amended
Bill Title: Public health finance.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Failed) 2016-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1396 Detail]
Download: California-2015-AB1396-Amended.html
BILL NUMBER: AB 1396 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 3, 2015
AMENDED IN ASSEMBLY JUNE 1, 2015
AMENDED IN ASSEMBLY APRIL 16, 2015
INTRODUCED BY Assembly Member Bonta
(Principal coauthor: Senator Pan)
(Coauthor: Assembly Member Wood)
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.
therefor, and declaring the urgency thereof, to take effect
immediately.
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 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.
This bill would declare that it is to take effect immediately as
an urgency statute.
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 1. Section 30130.53 is added to the Revenue and Taxation
Code, to read:
30130.53. (a) The board shall determine within one year of the
effective date of this act, and annually thereafter, the effect that
the additional taxes imposed on cigarettes by this article, and the
resulting increase in the tax on tobacco products required by
subdivision (b) of Section 30123, have on the consumption of
cigarettes and tobacco products in this state. To the extent that a
decrease in consumption is determined by the board to be a direct
result of the additional tax imposed by this article, or the
resulting increase in the tax on tobacco products required by
subdivision (b) of Section 30123, the board shall determine the
fiscal effect the decrease in consumption has on the Cigarette and
Tobacco Products Surtax Fund created by Section 30122 (Proposition 99
as approved by the voters at the November 8, 1988, statewide general
election), the Breast Cancer Fund created by Section 30461.6, the
California Children and Families Trust Fund created by Section 30131
(Proposition 10 as approved by the voters at the November 3, 1998,
statewide general election), and the General Fund with respect to
revenues derived from Section 30101.
(b) Funds shall be transferred from the California Tobacco Tax Act
of 2015 Fund, to the Cigarette and Tobacco Products Surtax Fund, the
Breast Cancer Fund, the California Children and Families Trust Fund,
and the General Fund, to offset the revenue decrease directly
resulting from imposition of additional taxes by this article.
(c) Transfers under this section shall be made by the board at
times as the board determines necessary to further the intent of this
section.
SEC. 2. Section 30130.55 is added to the Revenue and Taxation
Code, to read:
30130.55. (a) Notwithstanding any other law, the California
Tobacco Tax Act of 2015 Fund is a trust fund established solely to
carry out the purposes set forth in this article, and all revenues
deposited into the California Tobacco Tax Act of 2015 Fund, together
with interest earned by the fund, shall be expended only in
accordance with this article and its purposes.
(b) (1) Funds in the Tobacco Prevention and Education Account
shall be available, upon appropriation by the Legislature, to
supplement tobacco prevention and control programs as follows:
(A) Eighty percent to the State Department of Public Health.
(B) Ten percent to the State Department of Education.
(C) Ten percent to the University of California.
(2) Funds in the Tobacco Disease Related Health Care Account shall
be available to the State Department of Health Care Services, upon
appropriation by the Legislature, to improve existing programs to
provide quality and access to health care programs for families and
children pursuant to Chapter 7 (commencing with Section 14000) to
Chapter 8.9 (commencing with Section 14700), inclusive, of Part 3 of
Division 9 of the Welfare and Institutions Code.
(3) Funds in the Tobacco Law Enforcement Account shall be
available to the board, the Department of Justice, and the State
Department of Public Health, upon appropriation by the Legislature,
for the purpose of supplementing funding for the enforcement of laws
that regulate the distribution and sale of cigarettes and other
tobacco products, including, but not limited to, laws that prohibit
cigarette smuggling, counterfeiting, selling untaxed tobacco, selling
tobacco without a proper license, and selling tobacco to minors, and
enforcing tobacco-related laws, court judgments, and settlements.
(c) Not more than 5 percent of the funds received from the
California Tobacco Tax Act of 2015 Fund shall be used by any state
recipient for administrative costs.
(d) The Department of Justice, the State Department of Public
Health, the State Department of Education, and the State Department
of Health Care Services shall, and the Regents of the University of
California are requested to, on an annual basis, publish on their
respective Internet Web sites an accounting of moneys received from
the California Tobacco Tax Act of 2015 Fund and how the moneys were
spent.
SEC. 3. This act shall become operative only if Senate Bill 591 of
the 2015-16 Regular Session is also enacted and takes effect on or
before January 1, 2016.
SEC. 4. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to immediately offset any revenue decreases to the
California Children and Families Trust Fund, the Cigarette and
Tobacco Products Surtax Fund, the Breast Cancer Fund, and the General
Fund as a result of additional taxes that may be imposed, and 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 at the earliest possible time,
it is necessary that this act take effect immediately.
