HB1591 (2006) Detail

Requiring tobacco tax revenue attributable to tobacco sales to minors and tobacco consumption by minors to be deposited in the tobacco use prevention fund for youth tobacco use prevention programs and purposes.


HB 1591-FN-A – AS INTRODUCED

2006 SESSION

06-2331

09/04

HOUSE BILL 1591-FN-A

AN ACT requiring tobacco tax revenue attributable to tobacco sales to minors and tobacco consumption by minors to be deposited in the tobacco use prevention fund for youth tobacco use prevention programs and purposes.

SPONSORS: Rep. Knowles, Straf 6; Rep. Naro, Graf 7; Rep. Wall, Straf 7; Rep. Goodwin, Straf 6; Rep. Tholl, Coos 2; Sen. Estabrook, Dist 21

COMMITTEE: Finance

ANALYSIS

This bill requires tobacco tax revenue attributable to tobacco sales to minors and tobacco consumption by minors to be deposited in the tobacco use prevention fund for youth tobacco use prevention programs and purposes.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06-2331

09/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT requiring tobacco tax revenue attributable to tobacco sales to minors and tobacco consumption by minors to be deposited in the tobacco use prevention fund for youth tobacco use prevention programs and purposes.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Tobacco Tax; Distribution of Funds. Amend RSA 78:32 to read as follows:

78:32 Distribution of Funds.

I.(a) The sum determined by the panel under RSA 78:32-a to be the annual estimate of minor-generated tobacco tax revenue shall be deposited in the tobacco use prevention fund established pursuant to RSA 126-K:15.

(b) The commissioner shall determine the additional amount of revenue produced by any additional tax in excess of 37 cents for each package containing 20 cigarettes or at a rate proportional to such rate for packages containing more or less than 20 cigarettes, on all tobacco products sold at retail in this state imposed by RSA 78:7 and shall certify such amount to the state treasurer by October 1 of each year for deposit in the education trust fund established by RSA 198:39.

II. The commissioner shall make quarterly estimates of the amount of additional revenues that will be produced by such increase in tax rate for the next fiscal year and shall certify such amount to the state treasurer for deposit in the education trust fund established by RSA 198:39. Such estimates shall be certified on June 1, September 1, December 1, and March 1 of each year.

2 New Section; Tobacco Tax; Annual Estimate of Minor-generated Tobacco Tax Revenue. Amend RSA 78 by inserting after section 32 the following new section:

78:32-a Annual Estimate of Minor-generated Tobacco Tax Revenue.

I. There is established a panel to determine an annual estimate of minor-generated tobacco tax revenue, to be based on tobacco sales to minors and tobacco consumption by minors. The panel shall consist of:

(a) The commissioner of the department of revenue administration, or designee.

(b) The commissioner of the department of health and human services, or designee.

(c) The speaker of the house of representatives, or designee.

(d) The president of the senate, or designee.

II. In calculating the annual estimate of minor-generated tobacco tax revenue the panel shall consider the results of surveys of New Hampshire youth, including the most recent youth tobacco surveys, youth risk behavioral surveys, and other local surveys conducted within the past 3 years deemed appropriate by the panel. The panel shall hold one public hearing where expert advice and public input can be obtained in determining the amount of tobacco sales to minors and tobacco consumption by minors. The panel’s determination of the annual estimate of minor-generated tobacco tax revenue shall be calculated by multiplying $.80 by the estimated number of packages of all tobacco products sold to or consumed by minors annually.

III. The amount determined by the panel to be the annual estimate of minor-generated tobacco tax revenue shall be deposited in the tobacco use prevention fund under RSA 126-K:15, pursuant to RSA 78:32, II, and used exclusively for youth tobacco prevention programs and purposes.

3 Tobacco Use Prevention Fund. Amend RSA 6:12, I(b)(67) to read as follows:

(67) Moneys received under RSA 126-K:15 and RSA 78:32, II(a), which shall be credited to the tobacco use prevention fund.

4 Tobacco Use Prevention Fund. Amend the introductory paragraph of RSA 126-K:15 to read as follows:

126-K:15 Tobacco Use Prevention Fund. There is hereby established in the office of the state treasurer a fund to be known as the tobacco use prevention fund. Of tobacco settlement funds received by the state of New Hampshire, $3,000,000 annually, commencing with fiscal year 2001, shall be deposited in the tobacco use prevention fund. The sum determined by the panel under RSA 78:32-a to be the annual estimate of minor-generated tobacco tax revenue shall be deposited annually in the fund, pursuant to RSA 78:32, II(a), and shall be used exclusively for youth tobacco prevention programs and purposes. Moneys in this fund shall be nonlapsing and continually appropriated, beginning with fiscal year 2001, for tobacco use prevention and cessation programs, which shall include but not be limited to:

5 Effective Date. This act shall take effect July 1, 2006.

LBAO

06-2331

11/16/05

HB 1591-FN-A - FISCAL NOTE

AN ACT requiring tobacco tax revenue attributable to tobacco sales to minors and tobacco consumption by minors to be deposited in the tobacco use prevention fund for youth tobacco use prevention programs and purposes.

FISCAL IMPACT:

      The Departments of and Health and Human Services and Revenue Administration indicate this bill will decrease state unrestricted revenue and increase state restricted revenue by an indeterminable but equal amount in FY 2007 and each year thereafter. There is no fiscal impact on state, county and local expenditures or county and local revenue.

METHODOLOGY:

    The Department of Health and Human Services, Division of Public Health states this bill requires tobacco tax revenue attributable to tobacco sales to minors and tobacco consumption by minors to be deposited in the tobacco use prevention fund for youth tobacco use prevention programs and purposes. The amount of tobacco tax attributable to tobacco sales and consumption by minors will be determined by a panel created by this legislation, and includes the Commissioners of Revenue Administration, Health and Human Services, the Speaker of the House and the Senate President. The Department states that the fiscal impact of this bill would net to zero, but a portion of tobacco tax revenue would change from being recorded as state unrestricted general fund revenue to restricted revenue. The amount of this shift will depend on the panel’s determination, however, the Department used the 2004 NH Youth Tobacco Survey to determine the amount to be approximately $1.76 million.

    The Department of Revenue Administration states the fiscal impact of this bill is indeterminable. The Department, however, indicated that this change can be administered within their existing budget.