2012 -- H 7715

=======

LC01435

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

A N A C T

RELATING TO HEALTH AND SAFETY - TOBACCO CONTROL PROGRAM

     Introduced By: Representatives Handy, Valencia, McNamara, Bennett, and O`Grady

     Date Introduced: February 16, 2012

     Referred To: House Finance

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Title 23 of the General Laws entitled "HEALTH AND SAFETY" is hereby

1-2

amended by adding thereto the following chapter:

1-3

     CHAPTER 87

1-4

TOBACCO CONTROL PROGRAM

1-5

     23-87-1. Legislative findings. – Cigarette smoking presents serious public health

1-6

concerns to the state and to the citizens of the state. The surgeon general has determined that

1-7

smoking causes lung cancer, heart disease and other serious diseases, and that there are hundreds

1-8

of thousands of tobacco related deaths in the United States each year. These diseases most often

1-9

do not appear until many years after the person begins smoking.

1-10

     23-87-2. Tobacco Control Program. – (a) For fiscal years 2013 and 2014, the governor

1-11

and general assembly shall include at least three million, one hundred thousand dollars

1-12

($3,100,000) in the annual budget for appropriations to the state department of health to

1-13

implement the tobacco control program and for programs and activities aimed at reducing

1-14

tobacco use in Rhode Island as recommended by the centers for disease control and prevention, or

1-15

its successor agency, to prevent and reduce tobacco use, reduce exposure to secondhand smoke,

1-16

encourage cessation efforts, and identify and eliminate disparities related to tobacco use and its

1-17

effects among different population groups.

1-18

     (b) Commencing fiscal year 2015 and each fiscal year thereafter, the governor and

1-19

general assembly shall include in the annual budget in appropriations an additional five hundred

1-20

thousand ($500,000) to the amount allocated to the department of health tobacco control program

2-1

in the previous year for the purposes described in subsection (a) of this section until total funding

2-2

for the program has reached the level of funding recommended by the United States centers for

2-3

disease control and prevention, or its successor agency.

2-4

     SECTION 2. Sections 44-20-12, 44-20-12.3 and 44-20-19 of the General Laws in

2-5

Chapter 44-20 entitled "Cigarette Tax" are hereby amended to read as follows:

2-6

     44-20-12. Tax imposed on cigarettes sold. -- A tax is imposed on all cigarettes sold or

2-7

held for sale in the state. The payment of the tax to be evidenced by stamps, which may be

2-8

affixed only by licensed distributors to the packages containing such cigarettes. Any cigarettes on

2-9

which the proper amount of tax provided for in this chapter has been paid, payment being

2-10

evidenced by the stamp, is not subject to a further tax under this chapter. The tax is at the rate of

2-11

one hundred seventy-three (173) two hundred eighteen (218) mills for each cigarette.

2-12

     44-20-12.3. Floor stock tax on cigarettes and stamps. -- (a) Whenever used in this

2-13

section, unless the context requires otherwise:

2-14

      (1) "Cigarette" means and includes any cigarette as defined in section 44-20-1(2);

2-15

      (2) "Person" means and includes each individual, firm, fiduciary, partnership,

2-16

corporation, trust, or association, however formed.

2-17

      (b) Each person engaging in the business of selling cigarettes at retail in this state shall

2-18

pay a tax or excise to the state for the privilege of engaging in that business during any part of the

2-19

calendar year 2009. 2012. In calendar year 2009 2012, the tax shall be measured by the number of

2-20

cigarettes held by the person in this state at 12:01 a.m. on April 10, 2009 July 1, 2012 and is

2-21

computed at the rate of fifty (50.0) ninety (90) mills for each cigarette on April 10, 2009 July 1,

2-22

2012.

2-23

      (c) Each distributor licensed to do business in this state pursuant to this chapter shall pay

2-24

a tax or excise to the state for the privilege of engaging in business during any part of the calendar

2-25

year 2009 2012. The tax is measured by the number of stamps, whether affixed or to be affixed to

2-26

packages of cigarettes, as required by section 44-20-28. In calendar year 2009 2012 the tax is

2-27

measured by the number of stamps, as defined in section 44-20-1(10) (11), whether affixed or to

2-28

be affixed, held by the distributor at 12:01 a.m. on April 10, 2009 July 1, 2012, and is computed

2-29

at the rate of fifty (50.0) ninety (90) mills per cigarette in the package to which the stamps are

2-30

affixed or to be affixed.

2-31

      (d) Each person subject to the payment of the tax imposed by this section shall, on or

2-32

before April 20, 2009 July 10, 2012, file a return with the tax administrator on forms furnished by

2-33

him or her, under oath or certified under the penalties of perjury, showing the amount of

2-34

cigarettes or stamps in that person's possession in this state at 12:01 a.m. on April 10, 2009 July

3-1

1, 2012, and the amount of tax due, and shall at the time of filing the return pay the tax to the tax

3-2

administrator. Failure to obtain forms shall not be an excuse for the failure to make a return

3-3

containing the information required by the tax administrator.

3-4

      (e) The tax administrator may promulgate rules and regulations, not inconsistent with

3-5

law, with regard to the assessment and collection of the tax imposed by this section.

3-6

     44-20-19. Sales of stamps to distributors. -- The tax administrator shall sell stamps only

3-7

to licensed distributors at a discount of four cents ($0.04) per stamp. The distributor remits to the

3-8

division of taxation ninety-eight and three-fourths percent (98.75%) of the face value of the

3-9

stamps thereby receiving a discount of one and one-quarter percent (1.25%) of the face value of

3-10

the stamps. The ninety-eight and three-fourths percent (98.75%) remitted to the tax administrator

3-11

is the remaining amount, to be paid over to the general revenue by the tax administrator. The tax

3-12

administrator may, in his or her discretion, permit a licensed distributor to pay for the stamps

3-13

within thirty (30) days after the date of purchase; provided, that a bond satisfactory to the tax

3-14

administrator in an amount not less than the sale price of the stamps has been filed with the tax

3-15

administrator conditioned upon payment for the stamps. The tax administrator shall keep accurate

3-16

records of all stamps sold to each distributor.

3-17

     SECTION 3. This act shall take effect upon passage.

=======

LC01435

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO HEALTH AND SAFETY - TOBACCO CONTROL PROGRAM

***

4-1

     This act would create the Tobacco Control Program designed to help reduce tobacco use

4-2

in Rhode Island. Also, this act would increase the tax imposed on cigarettes sold in Rhode Island

4-3

and sets forth the rate to be paid by distributors for tax stamps. Finally, this act would impose an

4-4

increased tax on the sale of cigarettes and a rate for computation of this tax.

4-5

     This act would take effect upon passage.

=======

LC01435

=======