Proposition Summary

TAX ON CIGARETTES. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Imposes additional 13 cent tax on each cigarette distributed ($2.60 per pack), and indirectly increases tax on other tobacco products. Provides funding to qualified hospitals for emergency services, nursing education and health insurance to eligible children. Revenue also allocated to specified purposes including tobacco-use-prevention programs, enforcement of tobacco-related laws, and research, prevention, treatment of various conditions including cancers (breast, cervical, prostate, colorectal), heart disease, stroke, asthma and obesity. Exempts recipient hospitals from antitrust laws in certain circumstances. Revenue excluded from appropriation limits and minimum education funding (Proposition 98) calculations. Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: Increase in new state tobacco excise tax revenues of about $2.1 billion annually by 2007–08, declining slightly annually thereafter. Those revenues would be spent for various health programs, children’s health coverage, and tobacco-related programs. Unknown net state costs potentially exceeding $100 million annually after a few years due to provisions simplifying state health program enrollment rules and creating a new pilot program for children’s health coverage. Unknown, but potentially significant, savings to the state Medi-Cal Program and counties from a shift of children from other health care coverage to the Healthy Families Program (HFP); potential state costs that could be significant in the long term for ongoing support of expanded HFP enrollment. Unknown, but potentially significant, savings in state and local government public health care costs over time due to various factors, including an expected reduction in consumption of tobacco products.

Proposition Number




Document Type




Popular Vote Results


Election Type

General Election

Proposition Type


For Author

CAROLYN RHEE, Chair, American Cancer Society, California Division; P.K. SHAH, M.D., President, American Heart Association, Western States Affiliate; TIMOTHY A. MORRIS, M.D., Board Member, American Lung Association of California

Against Author

LARRY McCARTHY, President, California Taxpayers' Association; JAMES G. KNIGHT, M.D., Past President, San Diego County Medical Society; STEVEN REMIGE, President, Association for Los Angeles Deputy Sheriffs

Rebuttal Author

MONICA WEISBRICH, RN, Operating Room Nurse; JAIME ROJAS, President, California Hispanic Chambers of Commerce; MALCOLM SIMPSON, Public School Teacher

Rebuttal Against Author

MILA GARCIA, R.N., Member, American Heart Association, Western States Affiliate; WILLIE GOFFNEY, M.D. FACS, President, American Cancer Society, California Division 2006-07; RICK DONALDSON, Ph.D., RCP, Chair, American Lung Association of California