2013 -- S 0247

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LC01389

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO HEALTH AND SAFETY - TOBACCO CONTROL PROGRAM

     Introduced By: Senators Pichardo, Miller, Jabour, Lynch, and Goodwin

     Date Introduced: February 13, 2013

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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

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amended by adding thereto the following chapter:

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     CHAPTER 88

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TOBACCO CONTROL PROGRAM

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     23-88-1. Legislative findings. – Cigarette smoking presents serious public health

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

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

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

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

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     23-88-2. Tobacco Control Program. – (a) For fiscal years 2014 and 2015, the governor

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

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

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

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

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

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

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effects among different population groups.

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     (b) Commencing fiscal year 2016 and each fiscal year thereafter, the governor and

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

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

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

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

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centers for disease control and prevention, or its successor agency.

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

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

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

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

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

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

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

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

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

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section, unless the context requires otherwise:

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

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

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corporation, trust, or association, however formed.

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

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

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calendar year 2009. 2013. In calendar year 2009 2013, the tax shall be measured by the number of

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cigarettes held by the person in this state at 12:01 a.m. on April 10, 2009 July 1, 2013 and is

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

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2013.

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

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

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year 2009 2013. The tax is measured by the number of stamps, whether affixed or to be affixed to

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packages of cigarettes, as required by section 44-20-28. In calendar year 2009 2013 the tax is

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

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be affixed, held by the distributor at 12:01 a.m. on April 10, 2009 July 1, 2013, and is computed

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

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affixed or to be affixed.

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

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before April 20, 2009 July 10, 2013, file a return with the tax administrator on forms furnished by

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

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

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1, 2013, and the amount of tax due, and shall at the time of filing the return pay the tax to the tax

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

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containing the information required by the tax administrator.

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

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

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

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

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

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

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

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

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

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

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

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

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records of all stamps sold to each distributor.

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     SECTION 3. This act shall take effect upon passage.

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LC01389

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO HEALTH AND SAFETY - TOBACCO CONTROL PROGRAM

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

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

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

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

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     This act would take effect upon passage.

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LC01389

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