Attorney General No.

SA2005RF0097

Secretary of State No.

1159

Description

Imposes additional 71/2 cent tax on each cigarette distributed ($1.50 per pack), and indirectly increases tax on other tobacco products. Tax revenues allocated to specified purposes, including private hospital and physician emergency services, indigent healthcare, breast cancer research, tobacco use prevention, tobacco smuggling prevention and nursing education. Excludes tax revenue appropriations from constitutional appropriation limits and minimum school funding requirements (Proposition 98). Establishes criteria for receipt and use of tax revenues. Increases penalties for tobacco tax crimes. Provides that hospitals collaborating on emergency services are exempt from state antitrust laws. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: An increase in new state cigarette tax revenues of about $1.4 billion annually, declining slightly annually thereafter. Those revenues would be used for various health and education programs. Unknown but probably significant savings in state and local government health care costs over time due to expected reduction in consumption of tobacco products.

Proponents

Dorel Harms

Date

10-31-2005

Document Type

Initiative

Qualified

Failed to Qualify

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