2015 -- S 0375

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LC001394

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO HEALTH AND SAFETY - TOBACCO CONTROL PROGRAM

     Introduced By: Senators Pichardo, and Metts

     Date Introduced: February 25, 2015

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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

amended by adding thereto the following chapter:

CHAPTER 94

TOBACCO CONTROL PROGRAM

     23-94-1. Legislative findings. – Cigarette smoking presents serious public health

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

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

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

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

     23-94-2. Tobacco control program. – (a) For fiscal years 2016 and 2017, the governor

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

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

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

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

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

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

effects among different population groups.

     (b) Commencing fiscal year 2018 and each fiscal year thereafter, the governor and

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

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

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

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

CENTERS for DISEASE CONTROL and Prevention, or its successor agency.

     SECTION 2. Sections 44-20-12, 44-20-12.4 and 44-20-19 of the General Laws in

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

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

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

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

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

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

one hundred seventy-five (175) two hundred twenty-five (225) mills for each cigarette.

     44-20-12.4. Floor stock tax on cigarettes and stamps. -- (a) Whenever used in this

section, unless the context requires otherwise:

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

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

corporation, trust, or association, however formed.

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

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

calendar year 2012 2015. In calendar year 2012 2015, the tax shall be measured by the number of

cigarettes held by the person in this state at 12:01 a.m. on July 1, 2012 July 1, 2015 and is

computed at the rate of two (2.0) mills for each cigarette on July 1, 2012 July 1, 2015.

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

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

year 2012 2015. The tax is measured by the number of stamps, whether affixed or to be affixed to

packages of cigarettes, as required by § 44-20-28. In calendar year 2012 2015 the tax is measured

by the number of stamps, as defined in § 44-20-1(10), whether affixed or to be affixed, held by

the distributor at 12:01 a.m. on July 1, 2012 July 1, 2015, and is computed at the rate of two (2.0)

mills per cigarette in the package to which the stamps are affixed or to be affixed.

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

before July 10, 2012 July 10, 2015, file a return with the tax administrator on forms furnished by

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

cigarettes or stamps in that person's possession in this state at 12:01 a.m. on July 1, 2012 July 1,

2015, 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

containing the information required by the tax administrator.

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

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

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

to licensed distributors at a discount of four cents ($.04) per stamp. The distributor remits to the

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

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

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

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

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

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

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

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

records of all stamps sold to each distributor.

     SECTION 3. This act shall take effect upon passage.

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LC001394

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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 establish a tobacco control program and appropriates funds for this

program. This act also increases the tax imposed on cigarettes.

     This act would take effect upon passage.

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LC001394

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