Tobacco Documents Online

GOVERNMENT AFFAIRS WEEKLY REPORT February 14, 1997 FISCAL Alaska - H.1 and H.52, which would each increase the cigarette tax by $1 per pack, were heard in the House State Affairs Committee on 2/4. The dedication features of H.52 were implemented into H.1 and approved. The vote was 4 to 1. H. 1 was heard in the House Health, Education and Social Services Committee on 2/11. Further testimony on the bills are scheduled in this committee on 2/13. S.13 and S.61, which would increase the cigarette tax by $1 per pack and $1.25 per pack respectively, were heard in the House Health, Education and Social Services Committee on 2/10. Further testimony on the bills are scheduled in this committee on 2/14. Arkansas - S.320, introduced on 2/7, calls for a $.025 cents excise tax for the purpose of breast cancer research and detection. The bill was voted do pass in the Senate Revenue and Tax Committee on 2/12. Arizona - H.2467, requiring the AHCCCS administration to transfer $60 million in tobacco tax health care money for a premium sharing demo project by which the state will underwrite part of the cost of health care services for the uninsured poor, was heard in the House Health Committee on 2/12. The bill was approved with amendments, which are forthcoming. S.1385 requires not more than 1/3 of not more than $15 million in tobacco tax money to be used for primary health care services is changed to a flat $7 million per year. An additional $5 million is transferred for community health services. On 2/11, this bill was approved by the Senate Health Committee do pass; report awaited. Connecticut - Bill No. 6650 seeks to increase the minimum mark-up for licensed distributors of cigarettes from eight to sixteen percent. This bill will be the subject of a public hearing, but no date has yet been set. Hawaii - H.979, which increases the tax on cigarettes by $.40 per pack, was approved by the House Health Committee and on second reading in the House on 2/11. The bill has been referred to the House Finance Committee. H.1262 requires the Department of Business, Economic Development and Tourism to conduct a two part in-depth study of the single rate single tax proposal, the sales tax proposal and the value added tax proposal, and to report to the legislature. The bill was approved in the House Finance Committee and on second reading in the House on 2/11. Mi.chigan - S.101, which would require a tax stamp on all cigarettes sold in the state, was approved in the Senate on 2/10 by a vote of 33-1. {PAGE }

Mississippi - H.1745 would increase the excise tax on cigarettes and other tobacco products an additional $.75 per pack to fund Medicaid for recipients with tobacco- related illnesses. Current level is $.18 per pack. New Hampshire - H.577, which would increase the cigarette tax by $.18 per pack to fund a statewide kindergarten program, is scheduled for a hearing on 2/20 before the House Education Committee. S.204, which would raise the tax on all tobacco products by $.16 per pack to fund education programs, was introduced on 1/9, and referred to the Senate Ways and Means Committee. It has been scheduled for a hearing on 2/18. S.215, which would raise the cigarette tax by $.18 per pack to fund education programs, was introduced on 1/9, and referred to the Senate Ways and Means Committee. It has been scheduled for a hearing on 2/18. New Mexico - H.699, a tax increase of $.40, was introduced on 2/13 and will be heard in the House Business and Industry Committee. No hearing date is scheduled. New York - On 2/11, the Pataki administration announced that it planned to start collecting taxes on gasoline and cigarettes sold to non-Indian customers on Indian reservations on 1/1/97. Under the tax collection plan, upheld by the Supreme Court in 1994, the state would estimate the amount of cigarettes and gasoline that a business sold to Indians. Sales beyond a predetermined limit, based on how many Indians live on a reservation, would be taxed on the assumption that the merchandise would be resold to non-Indians. ading North Dakota - S.2263, increasing the tax on OTP, failed passage on second reading in the Finance and Taxation Committee on 2/11, nays 29 - yeas 18. Oregon - H.2483, which changes the temporary cigarette tax to a tax continuing indefinitely, was introduced on 2/5. On 2/10, the bill was referred toe House Revenue Committee with subsequent referral to the House Ways and Means Committee. A similar bill, H.2558, was introduced on 2/10. South Dakota - H.1207, introduced on 1/31, which would increase the cigarette excise tax to $.43 per pack, a$.10 increase, and raise the OTP tax from 10 percent to 20 percent of wholesale price, was defeated in the House Taxation Committee on 2/13 by a vote of 12 - 1. Utah - H.27 was approved by the Taxation and Revenue Committee on 1/29 with a $.25 per pack tax increase. The Senate floor on 2/13 reduced to $.20 unearmarked. S.227, a $.25 per pack tax increase, was introduced on 2/12 and is not yet assigned to committee. Wisconsin - Governor Thompson announced 2/12 that the state would seek a $.05 per pack excise tax on tobacco products. ra e> m . K) SMOHING Cn W 00 Colorado - H.1147, prohibiting the use of tobacco products in schools, is scheduled ~ for hearing on the House floor during the week of 2/17. "' {PAGE }

Hawaii - H.980 amends the smoking law to apply provisions to all workplaces owned or controlled by the State including all motor vehicles owned or leased by the State. The bill exempts dining areas of food service establishments, meeting or banquet rooms in hotels and motels when used for private functions, convention center facilities and workplaces in private residences. On 2/8, second reading of the bill was approved on the House floor, and it was then referred to the House Labor Committee. Kansas - H.2286, introduced on 2/10, prohibits smoking in public places or meetings accessible to minors. Maine - LD413, which would ban all smoking in workplaces, restaurants and public places, was heard before the Health and Human Services Committee on 2/11. No action was taken. Montana -. H.255 would allow local governments to designate smoking and non- smoking areas in local government buildings in convenient areas. On 1/28, this was introduced and assigned to the Local Government Committee. A hearing date is not yet set. New Hampshire - H.506, which prohibits smoking in any dining establishment where serving food is the primary function, was introduced on 1/9 and referred to the House Commerce Committee. New York - Monroe County - On 2/11 the Monroe County Legislature approved legislation to strictly restrict smoking in, public places, restaurants, bingo halls, bowling centers and work sites. The actual text of the law is not available. However, sources report that the law's provisions include 85 percent of the dining areas of restaurants be designated no smoking by 1/1/98, and by 1/1/99 all dining areas to be smoke free. Smoking will continue to be permitted in the bar areas of restaurants and in separate rooms that do comprise more than 25 percent of overall seating. Bingo halls would be permitted to have 15 percent of their seats for smoking as of 1I1/98 with a total ban by 1/1/99. Smoking would be permitted in a separate room that does not exceed 50 percent of seating. Smoking remains unrestricted in bars. The law also provides that businesses can apply for variances to any provision of the law. Oklahoma - S.60, introduced on 1/29, allows governmental entities to ban smoking in owned and leased facilities. The bill was voted do pass in the Human Resources Committee on 2/7. Pennsylvania - S.294, introduced 2/10 by Sen. Allyson Schwartz, would do the following: (1) amend the Fire & Panic Act to prohibit the use of tobacco by any individual regardless of age at school buildings, or on buses and property; (2) prohibit schools from designating smoking areas for employees; (3) define "local government site" and "state government site;" (4) change the definition of "public place;" and, (5) provide the Department of Health or affected party the authority to institute an action in any court. {PAGE }

Rhode Island - H.5718, which would prohibit smoking in all state offices and other public places unless the facilities have designated smoking areas with separate ventilation systems, was introduced on 1/30 and referred to the House Health, Education and Welfare Committee. South Dakota - S.251, introduced on 2/3, which would allow the Governor to smoke in the Governor's office, failed passage in committee on 2/12. Washington - S.5666 permits but does not require employers to accommodate indoor smoking in the workplace. The bill is scheduled for public hearing in the Senate Commerce and Labor Committee on 2/13. MARKETING Colorado - Fort Collins -- The City Council will consider the self-service ban ordinance for a second and final reading on 2/18. Public comment will be allowed, and the council is expected to approve the ordinance with some amendments. Connecticut - Town of Waterbury - On 2/11 the Board of Alderman approved a 90 day moratorium on all new billboards in the city of Waterbury. While this action was not aimed at specific products, some legislators spoke of concerns about the placement of alcohol and tobacco ads. Hawaii - H.978 would amend the smoking law to prohibit any person from engaging in the distribution of samples of or coupons for cigarettes or tobacco products or promotional materials in or on any public street, sidewalk, or park, or within 1,000 feet of any elementary, intermediate or high school. On 2/10, the House approved second reading of the bill. It now goes to the House Judiciary Committee. Illinois - H.407, introduced on 2/10 by Rep. Scott, would ban advertising alcoholic beverages and tobacco products within 1,000 feet of an elementary or secondary school. The bill has been assigned to the House Commerce Committee with a hearing scheduled for 2/20. Iowa - H.172, introduced on 2/6 by Rep. Doderer, would eliminate smoking and marketing uniformity. The bill has been referred to the Local Governments Committee. S.68, introduced on 2/6 by Senator Schierer, would eliminate smoking and marketing uniformity. The bill has been referred to the Human Resources Committee. S.110, introduced by Senator Jensen on 2/4, would provide for an increase in penalty from $25 to $100 for a violation of possession of tobacco by a minor. Maine - LD211, which would repeal a provision of law that prohibits municipalities from enacting ordinances regarding tobacco displays, product placement and time of tobacco product sales, was heard before the State and Local Government Committee on 2/7, and again on 2/12. The committee voted 12-1 "ought to pass." It is expected to be on the Senate calendar next week. {PAGE }

Minnesota - H.117, which was approved on the House floor (128-0) on 2/6, includes an amendment providing line of sight requirement substituted for the self-service display ban (70-62). Though bill permits local regulation, it also requires a 30-day notice for any local tobacco marketing proposal. Mississippi - H.1389 by Rep. McBride, an act to create the Mississippi Juvenile Tobacco Access and Prevention Act of 1997, was approved by the House by a vote of 83 to 38. The legislation provides for fines and penalties at retail for violation of the prohibition of sale to minors. The bill was amended to remove a total ban on vending machines, prohibition of self service displays at retail outlets and a repeal of uniformity. The bill has not yet been assigned to a Senate committee. Montana - H.331, restricting vending machines, was approved on third reading on 2/13 by a vote of 85 - 15. New Hampshire - A subcommittee work session is scheduled for 3/5 on H.147, which would require manufacturers of cigarettes and other tobacco products to disclose certain information relating to such products. H.487, which would prohibit the distribution of coupons for tobacco products and tobacco product promotional materials to minors, was introduced on 1/9 and referred to the House Commerce Committee. H.599, which bans vending machines, restricts advertising and promotions and raises licensing fees, was introduced on 1/9 and referred to the House Commerce Committee. A public hearing is scheduled for the first week of March. H.721, which would prohibit advertising of certain tobacco or alcohol in drug-free school zones, was introduced on 1/9 and referred to the House Commerce Committee. New Jersey - S.1795, introduced 1/23 by Sen. Ewing and Sen. Cafiero, would prohibit possession of cigarettes and other tobacco products by minors. A.2684, introduced 1/23 by Assemblyman Gibson and Assemblyman Bagger, would make possession of tobacco products by minors illegal. Oklahoma - S.619, introduced on 1/29, increases fines for underage sales, allows for license suspension, and provides for each municipality to adopt ordinances to establish local retailer licensing requirements. The bill was voted do pass in the Human Resources Committee on 2/7. South Dakota - H.1190 provides a reward, for any person providing information or evidence leading to the arrest/conviction of persons selling/distributing tobacco products to minors, was defeated in committee on 2/12. Vermont - Burlington -- The Board of Health held a hearing on 2/10 to consider regulations requiring tobacco products be kept behind the counter or in locked displays, outdoor advertising restrictions and limits on point-of-sale advertising and advertising within certain distances of schools. No action was taken. TORT {PAGE }

Maine - LD570, which would clarify the laws on punitive damages in which one- third of civil lawsuits awarded be paid directly to the State Treasurer for general purposes, was introduced on 1/28 and referred to the Judiciary Committee. OTBELi. Arkansas - H.1530, introduced on 2/7, would create a Department of Tobacco Control governed by a wholesalers dominated board. The bill has been referred to the Rules Committee. Colorado - H.1091, requiring tobacco producers to give the state annual reports listing ingredients and the nicotine content, was approved by the House Health Environment Welfare and Institutions Committee on 1/30 with amendments. The bill is scheduled on the House floor on 2/14. Kansas - H.2260, introduced 2/7, requires minors charged with tobacco violations to appear in court with a parent. A third time conviction would require attendance at a two hour training class on smoh.ng and health. Maine - LD672, which would prohibit the State Auditor and constitutional officers from engaging in political fund-raising activities, was introduced on 2/4 and referred to the Legal and Veterans Affairs Committee. Montana - H.290, prohibiting littering with burning material _ and - dumping ashtrays on forest service lands, was transmitted to the Senate on 2/8. No hearing date is set yet. New Mexico - S.654, a private property protection act, which is an ALEC model bill, was introduced on 2/11 and has not yet been assigned to committee. New York - Schenectady County -- On 2/11, the County legislature approved a law which encourages retailers of tobacco products to voluntarily register at the county level through an "incentive program". Tobacco merchants who voluntarily register with the county and who indicate their employees are trained in compliance with tobacco sales laws will face lower fines for violations of minimum age laws, then unregistered businesses, i.e. $100 for a first offense compared with $250 to $500 for unregistered businesses. In addition, county officials are enabled to give $100 awards to members of the public who turn in businesses that sell to minors. Rh.ode Island - S.212, which requires use of curriculum in the state's schools that teaches the effects that tobacco use and other substances have on the human body, was introduced on 2/4 and referred to the Senate Health, Education and Welfare Committee. H.5084, a bill to allow for statewide initiatives, was introduced on 1/9 and referred to the House Judiciary Committee and is scheduled for hearing on 2/12. ~a - Utah - H.402, an ingredients disclosure bill, was introduced on 2/3 and is not yet ~ assigned to committee. ~ _ 0 cr_- {PAGE }

AAA Arkansas - H.1610, introduced on 2/10, establishes: 1) proof of age; 2) seller and purchaser penalties; 3) mandatory compliance checks; 4) sales, marketing and use uniformity; and, 5) clerk training. Arizona - 5.1366, introduced on 2/5, involves distribution of tobacco to minors with provisions including definitions, random inspections, enforcement, training standards and enforcement by counties, cities and towns. The bill could lead to suspension of drivers license for those. persons using their drivers license to fraudulently obtain tobacco products, and would repeal the criminal statute relating to furnishing tobacco to a minor. It was referred to the Senate Government Ref., Appropriations and Rules Committees on 2/6. Colorado - H.1088, prohibiting vending machines in places accessible to persons under 21 years of age amended to 18 years,of age, was approved by a 6-_ 5 vote in the Health Environment Welfare and Institutions Committee on 1%30. The bill is currently pending second reading. S.98, making it illegal for minors to possess tobacco products, was approved by the Health Environment Welfare and Institutions Committee on ]130 with amendments that give the juvenile court exclusive jurisdiction over kids aged 10-18 caught possessing tobacco products. This would be the same as possession of alcohol or marijuana. The bill was referred to the Senate Appropriations Committee on 2/12. Connecticut - Proposed Bill No. 5450 which would authorize municipalities to ban the possession of tobacco by minors will be heard before_ the Select Committee on Children on 2/20. Idaho - H.185 adds to and repeals existing law to prohibit a minor from using, purchasing, receiving or possessing tobacco products and to provide for reporting to the Governor & the Federal Dept. of Health and Human Services by the Executive Agency designated by the Governor to enforce the act. The bill was approved in the House State Affairs Committee on 2/10 by a vote.of 13 to 5. The bill is scheduled for third reading in the House on 2/12, and a vote in the House on 2/13. Illinois - S.1113, a bill that contains statewide uniformity, education and training requirements, inspection protocol, licensing and penalties, was introduced by Senator Welch on 2/7. Committee assignment is pending. The bill is currently supported by the retail community. S.985, introduced on 2/7 at the request of the Attorney General, requires licensing, excessive fees, some education and training components, and contains poor affirmative defenses and severe penalties for retailers. The bill would also permit additional local regulation. It is currently being engrossed and awaiting committee assignment. The retail community is in opposition. Indiana - The Senate approved S.6, which would make it a Class C infraction for a person less than 18 years of age to possess tobacco, was referred to the House Public Policy, Ethics and Veterans Affairs Committee. The bill provides certain defenses {PAGE }

for a person who possesses tobacco in the ordinary course of employment in a business concerning tobacco. S.106, youth tobacco bill, which includes marketing uniformity, was vetoed by former Governor Evan Bayh on 3/19/96. The bill was enacted into law by an override vote of 26-24 in the Senate on 2/11 and 55-43 in the House on 2/13. Maine - LD412, which would require an ID for purchase of tobacco products by anyone over the age of 18, was heard before the Health and Human Services Committee on 2/11. No action was taken. Michigan - S.136, which would prohibit the distribution of tobacco products to minors; prohibit the use of tobacco products by minors; and regulate the retail sale of tobacco products and provide penalties, was introduced on 2/11 and referred to the Senate Health Policy & Senior Citizens Committee. H.4285, which would prohibit the distribution of tobacco products to minors; prohibit the use of tobacco products by minors; regulate the retail sale of tobacco products and provide penalties, was introduced on 2/12 and referred to the House Public Health Committee. South Dakota - H.1254, an act to increase the penalty for purchase, possession, or consumption of tobacco by minors, introduced on 2/3, was defeated in committee on 2/13. Washington - H.1746 and its companion, S.5687, would make minors in possession of tobacco a class 3 civil infraction, and clarify penalties for violation of current laws regarding youth access to tobacco. The bills establish good faith, absolute and due diligence defenses to licensees who allegedly violate youth access prohibitions and prohibit the use of youth tobacco prevention account money to fund private groups and persons for lobbying or public relations services. Both bills are scheduled for public hearing in the Commerce and Labor Committees on 2/17. MEDICAID LIABILITY Wisconsin - On 2/10, the Governor approved hiring outside counsel to pursue the state's lawsuit against the industry. cr~ ~ oo {PAGE }