BillCam

HOUSE BILL No. 6007

May 15, 2018, Introduced by Rep. Lower and referred to the Committee on Oversight.

A bill to amend 1993 PA 327, entitled

"Tobacco products tax act,"

by amending section 12 (MCL 205.432), as amended by 2016 PA 309.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 12. (1) The proceeds derived from the payment of taxes,

fees, and penalties provided for under this act and the license

fees received by the department shall be deposited with the state

treasurer and disbursed only as provided in this section and

section 7(5). However, before a distribution of funds is made under

this section, subject to appropriation, the funds described in this

section may be used by the department, the attorney general, and

the department of state police for enforcement and administration

of this act.

(2) The tax imposed under section 7(1)(a) shall be disbursed

as follows:

(a) 94% of the proceeds shall be credited to the state school

aid fund established by section 11 of article IX of the state

constitution of 1963.

(b) 6% of the proceeds shall be credited to the Healthy

Michigan fund created under section 5953 of the public health code,

1978 PA 368, MCL 333.5953. Fifty percent of the proceeds described

in this subdivision that are used for smoking prevention programs

shall be used by the department of health and human services to

expand the free smokers quit kit program to include the nicotine

patch or nicotine gum.

(3) The tax imposed on cigarettes under section 7(1)(b) shall

be disbursed as follows:

(a) Beginning May 1, 1994 and through June 30, 2004, 5.3% of

the proceeds shall be credited to the health and safety fund

created in the health and safety fund act, 1987 PA 264, MCL 141.471

to 141.479.

(b) Beginning July 1, 2004, 6.5% of the proceeds shall be

credited to the health and safety fund created in the health and

safety fund act, 1987 PA 264, MCL 141.471 to 141.479.

credited to the general fund of this state.

(d) Beginning July 1, 2004 and through September 30, 2014,

24.1% of the proceeds shall be credited to the general fund of this

state.

(e) 63.4% of the proceeds shall be credited to the state

school aid fund established by section 11 of article IX of the

state constitution of 1963.

(f) 6% of the proceeds shall be credited to the Healthy

Michigan fund created under section 5953 of the public health code,

1978 PA 368, MCL 333.5953. Fifty percent of the proceeds described

in this subdivision that are used for smoking prevention programs

shall be used by the department of health and human services to

expand the free smokers quit kit program to include the nicotine

patch or nicotine gum.

(g) Beginning October 1, 2014, 24.1% of the proceeds shall be

disbursed as follows:

(i) For the 2014-2015 fiscal year and each subsequent fiscal

year, $3,000,000.00 to the Michigan state capitol historic site

fund created in section 7 of the Michigan state capitol historic

site act, 2013 PA 240, MCL 4.1947. For the 2015-2016 fiscal year

and each subsequent fiscal year, the state treasurer shall adjust

the figure described in this subparagraph by an amount determined

by the state treasurer at the end of each calendar year to reflect

the cumulative annual percentage change in the consumer price

index. Beginning for the 2015-2016 fiscal year and each subsequent

fiscal year, if the cumulative annual percentage change in the

consumer price index is negative, then the adjustment for that

fiscal year is zero. As used in this subsection, "consumer price

index" means the most comprehensive index of consumer prices

available for this state from the Bureau of Labor Statistics of the

United States Department of Labor. From the funds described in this

subparagraph, not later than February 1 of each year, the Michigan

state capitol commission created in section 5 of the Michigan state

capitol historic site act, 2013 PA 240, MCL 4.1945, shall report to

the Michigan capitol committee created in section 701 of the

legislative council act, 1986 PA 268, MCL 4.1701, and to the

chairpersons of the house and senate appropriations committees. The

report shall contain all of the following:

(A) The proposed maintenance plan for the Michigan State

Capitol Historical Site for the immediately following fiscal year.

(B) The projected 5-year maintenance plan for the Michigan

State Capitol Historical Site for the immediately following 5

fiscal years.

Capitol Historical Site that exceed $1,000,000.00.

(ii) The remaining proceeds shall be credited to the general

fund of this state.

(4) Beginning August 1, 2002, the tax imposed on cigarettes

under section 7(1)(c) shall be disbursed as follows:

(a) Through June 30, 2004, 74.2%, and beginning July 1, 2004,

9.0% of the proceeds shall be credited to the general fund of this

state.

(b) Through June 30, 2004, 4.6%, and beginning July 1, 2004,

56.3% of the proceeds shall be credited to the state school aid

fund established by section 11 of article IX of the state

constitution of 1963.

Michigan fund created under section 5953 of the public health code,

1978 PA 368, MCL 333.5953. Fifty percent of the proceeds described

in this subdivision that are used for smoking prevention programs

shall be used by the department of health and human services to

expand the free smokers quit kit program to include the nicotine

patch or nicotine gum.

(d) Through June 30, 2004, 3.0%, and beginning July 1, 2004,

3.7% of the proceeds shall be paid to counties with a 2000

population of more than 2,000,000, to be used only for indigent

health care.

(e) Through June 30, 2004, 12.2%, and beginning July 1, 2004,

25.0% of the proceeds shall be credited to the Medicaid benefits

trust fund created under section 5 of the Michigan trust fund act,

2000 PA 489, MCL 12.255.

(5) Beginning August 1, 2002, the tax imposed under section

7(1)(f) shall be disbursed as follows:

(a) 75.6% of the proceeds shall be credited to the state

school aid fund established by section 11 of article IX of the

state constitution of 1963.

(b) 6.0% of the proceeds shall be credited to the Healthy

Michigan fund created under section 5953 of the public health code,

1978 PA 368, MCL 333.5953. Fifty percent of the proceeds described

in this subdivision that are used for smoking prevention programs

shall be used by the department of health and human services to

expand the free smokers quit kit program to include the nicotine

patch or nicotine gum.

fund of this state.

(6) Beginning August 1, 2002, the tax imposed on cigarettes

under section 7(1)(d) shall be disbursed as follows:

(a) 94.0% of the proceeds shall be credited to the state

school aid fund established by section 11 of article IX of the

state constitution of 1963.

(b) 6.0% of the proceeds shall be credited to the Healthy

Michigan fund created under section 5953 of the public health code,

1978 PA 368, MCL 333.5953. Fifty percent of the proceeds described

in this subdivision that are used for smoking prevention programs

shall be used by the department of health and human services to

expand the free smokers quit kit program to include the nicotine

patch or nicotine gum.

(7) Beginning July 1, 2004, the tax imposed on cigarettes

under section 7(1)(e) shall be disbursed as follows:

(a) Beginning July 1, 2004 and through September 30, 2005,

100% of the proceeds shall be credited to the Michigan Medicaid

benefits trust fund created under section 5 of the Michigan trust

fund act, 2000 PA 489, MCL 12.255.

(b) Beginning October 1, 2005, 75.0% of the proceeds shall be

credited to the Michigan Medicaid benefits trust fund created under

section 5 of the Michigan trust fund act, 2000 PA 489, MCL 12.255.

credited to the general fund of this state.

(8) Beginning July 1, 2004, the tax imposed under section

7(1)(g) shall be disbursed as follows:

(a) Beginning July 1, 2004 and through September 30, 2005,

100% of the proceeds shall be credited to the Michigan Medicaid

benefits trust fund created under section 5 of the Michigan trust

fund act, 2000 PA 489, MCL 12.255.

(b) Beginning October 1, 2005, 75.0% of the proceeds shall be

credited to the Michigan Medicaid benefits trust fund created under

section 5 of the Michigan trust fund act, 2000 PA 489, MCL 12.255.

credited to the general fund of this state.

(9) The proceeds of the fees and penalties provided for in

this act shall be used for the administration of this act.

Enacting section 1. This amendatory act takes effect 90 days

after the date it is enacted into law.

Enacting section 2. This amendatory act does not take effect

unless Senate Bill No.____ or House Bill No. 6006 (request no.

03200'17) of the 99th Legislature is enacted into law.