H*3584(Rat #0193, Act #0170 of 2010)  General Bill, By Harrell, Bingham, Cooper, 
Harrison, Owens, Sandifer, White, Crawford, Bannister, Huggins, Sottile, Spires, 
Herbkersman, Loftis, Bowen, Erickson, Daning, Hardwick, J.R. Smith, Pinson, 
Toole, Brady, Clemmons, Edge, Forrester, Frye, Gullick, Hearn, Hiott, Horne, 
Kelly, Littlejohn, Long, E.H. Pitts, Rice, Skelton, D.C. Smith, G.M. Smith, 
Whitmire, Wylie, Gunn, Limehouse, Willis, J.E. Smith and Bales

Similar(H 3470, H 3486)
 AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION
 12-21-625 SO AS TO IMPOSE A SURTAX ON EACH CIGARETTE IN AN AMOUNT OF TWO AND
 ONE-HALF CENTS, TO PROVIDE FOR THE CREDITING OF THE REVENUE FROM THE SURTAX TO
 THE MEDICAL UNIVERSITY OF SOUTH CAROLINA HOLLINGS CANCER CENTER FOR
 TOBACCO-RELATED CANCER RESEARCH, THE SMOKING PREVENTION AND CESSATION TRUST
 FUND, AND THE MEDICAID RESERVE FUND, TO PROVIDE FOR REPORTING, PAYMENT,
 COLLECTION, AND ENFORCEMENT OF THE SURTAX, AND TO DEFINE "CIGARETTE"; TO AMEND
 SECTION 12-21-620, RELATING TO THE ORIGINAL CIGARETTE TAX, SO AS TO INCLUDE
 THE DEFINITION OF "CIGARETTE"; BY ADDING SECTION 11-11-230 SO AS TO CREATE AND
 ESTABLISH THE SMOKING PREVENTION AND CESSATION TRUST FUND AND THE MEDICAID
 RESERVE FUND, BOTH SO AS TO RECEIVE DEPOSITS OF THE REVENUES FROM THE
 CIGARETTE SURTAX AS SPECIFIED; AND BY ADDING SECTION 11-49-55 SO AS TO PROVIDE
 THAT IF FUNDS FROM THE SMOKING PREVENTION AND CESSATION TRUST FUND ARE
 AVAILABLE, AND NOT OTHERWISE COMMITTED, THE DEPARTMENT OF AGRICULTURE SHALL
 RECEIVE ONE MILLION DOLLARS ANNUALLY FOR FIVE YEARS FOR MARKETING AND BRANDING
 STATE-GROWN CROPS AND TO ASSIST IN RELIEF FROM NATURAL DISASTERS AFFECTING
 STATE-GROWN CROPS. - ratified title

   02/19/09  House  Introduced and read first time HJ-6
   02/19/09  House  Referred to Committee on Ways and Means HJ-6
   02/24/09  House  Member(s) request name added as sponsor: Gunn,
                     Limehouse
   03/05/09  House  Member(s) request name added as sponsor: Willis
   03/31/09  House  Member(s) request name added as sponsor: J.E.Smith
   03/31/09  House  Committee report: Favorable with amendment Ways
                     and Means HJ-15
   04/01/09  House  Requests for debate-Rep(s). Cooper, Rice, Edge,
                     Millwood, Crawford, Wylie, Kelly, and Sellers HJ-66
   04/02/09  House  Member(s) request name added as sponsor: Bales
   04/02/09  House  Amended HJ-61
   04/02/09  House  Read second time HJ-79
   04/02/09  House  Roll call Yeas-97  Nays-22 HJ-79
   04/02/09  House  Unanimous consent for third reading on next
                     legislative day
   04/02/09         Scrivener's error corrected
   04/02/09  House   Motion to reconsider tabled HJ-79
   04/02/09  House  Unanimous consent for third reading on next
                     legislative day HJ-81
   04/03/09  House  Read third time and sent to Senate
   04/14/09  Senate Introduced and read first time SJ-20
   04/14/09  Senate Referred to Committee on Finance SJ-20
   05/07/09  Senate Committee report: Favorable with amendment
                     Finance SJ-17
   03/25/10  Senate Special order, set for March 25, 2010 SJ-277
   03/31/10  Senate Committee Amendment Amended and Adopted SJ-23
   03/31/10  Senate Amended SJ-23
   03/31/10  Senate Read second time SJ-23
   04/14/10  Senate Amended SJ-113
   04/14/10  Senate Read third time and returned to House with
                     amendments SJ-113
   04/21/10  House  Debate adjourned HJ-24
   04/21/10  House  Senate amendment amended HJ-54
   04/21/10  House  Returned to Senate with amendments HJ-54
   05/04/10  Senate Concurred in amendment SJ-12
   05/04/10  Senate  Motion to Reconsider Pending SJ-12
   05/05/10  Senate Concurred in House amendment and enrolled SJ-32
   05/06/10         Ratified R 193
   05/11/10         Vetoed by Governor
   05/12/10  House  Veto overridden by originating body Yeas-90 
                     Nays-29 HJ-25
   05/13/10  Senate Veto overridden Yeas-33  Nays-13 SJ-29
   05/26/10         Effective date See Act for Effective Date
   06/09/10         Act No. 170

(A170, R193, H3584)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-21-625 SO AS TO IMPOSE A SURTAX ON EACH CIGARETTE IN AN AMOUNT OF TWO AND ONE-HALF CENTS, TO PROVIDE FOR THE CREDITING OF THE REVENUE FROM THE SURTAX TO THE MEDICAL UNIVERSITY OF SOUTH CAROLINA HOLLINGS CANCER CENTER FOR TOBACCO-RELATED CANCER RESEARCH, THE SMOKING PREVENTION AND CESSATION TRUST FUND, AND THE MEDICAID RESERVE FUND, TO PROVIDE FOR REPORTING, PAYMENT, COLLECTION, AND ENFORCEMENT OF THE SURTAX, AND TO DEFINE "CIGARETTE"; TO AMEND SECTION 12-21-620, RELATING TO THE ORIGINAL CIGARETTE TAX, SO AS TO INCLUDE THE DEFINITION OF "CIGARETTE"; BY ADDING SECTION 11-11-230 SO AS TO CREATE AND ESTABLISH THE SMOKING PREVENTION AND CESSATION TRUST FUND AND THE MEDICAID RESERVE FUND, BOTH SO AS TO RECEIVE DEPOSITS OF THE REVENUES FROM THE CIGARETTE SURTAX AS SPECIFIED; AND BY ADDING SECTION 11-49-55 SO AS TO PROVIDE THAT IF FUNDS FROM THE SMOKING PREVENTION AND CESSATION TRUST FUND ARE AVAILABLE, AND NOT OTHERWISE COMMITTED, THE DEPARTMENT OF AGRICULTURE SHALL RECEIVE ONE MILLION DOLLARS ANNUALLY FOR FIVE YEARS FOR MARKETING AND BRANDING STATE-GROWN CROPS AND TO ASSIST IN RELIEF FROM NATURAL DISASTERS AFFECTING STATE-GROWN CROPS.

Be it enacted by the General Assembly of the State of South Carolina:

Cigarette surtax imposed; distribution of revenue; "cigarette" defined

SECTION    1.    Article 5, Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Section 12-21-625.    (A)    Effective July 1, 2010, there is imposed a surtax on cigarettes subject to the tax imposed pursuant to Section 12-21-620(1) in an amount equal to two and one-half cents on each cigarette.

(B)    Notwithstanding another provision of law providing for the crediting of the revenues of license or other taxes, the revenue of the surtax imposed pursuant to this section must be credited as follows:

(1)    five million dollars annually to the Medical University of South Carolina Hollings Cancer Center to be used for tobacco-related cancer research;

(2)    five million dollars annually to the Smoking Prevention and Cessation Trust Fund created pursuant to Section 11-11-230(A);

(3)    the remaining annual revenue shall be deposited in the South Carolina Medicaid Reserve Fund created pursuant to Section 11-11-230(B).

(C)    For all purposes of reporting, payment, collection, and enforcement, the surtax imposed by this section is deemed to be imposed pursuant to Section 12-21-620.

(D)    For purposes of this section, 'cigarette' means:

(1)    any roll for smoking containing tobacco or any substitute for tobacco wrapped in paper or in any substance other than a tobacco leaf; or

(2)    any roll for smoking containing tobacco or any substitute for tobacco, wrapped in any substance, weighing three pounds per thousand or less, however labeled or named, which because of its appearance, size, type of tobacco used in the filler, or its packaging, pricing, marketing, or labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in item (1)."

"Cigarette" defined

SECTION    2.    Section 12-21-620 of the 1976 Code is amended to read:

"Section 12-21-620.    (A)    There shall be levied, assessed, collected, and paid in respect to the articles containing tobacco enumerated in this section the following amounts:

(1)    upon all cigarettes made of tobacco or any substitute for tobacco, three and one-half mills on each cigarette;

(2)    upon all tobacco products, as defined in Section 12-21-800, five percent of the manufacturer's price.

Manufacturer's price as used in this section is the established price at which a manufacturer sells to a wholesaler.

(B)    As used in this section, 'cigarette' means:

(1)    any roll for smoking containing tobacco or any substitute for tobacco wrapped in paper or in any substance other than a tobacco leaf; or

(2)    any roll for smoking containing tobacco or any substitute for tobacco, wrapped in any substance, weighing three pounds per thousand or less, however labeled or named, which because of its appearance, size, type of tobacco used in the filler, or its packaging, pricing, marketing, or labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in item (1) of this subsection."

Smoking Prevention and Cessation Trust Fund created; Medicaid Reserve Fund created

SECTION    3.    Article 1, Chapter 11, Title 11 of the 1976 Code is amended by adding:

"Section 11-11-230.    (A)    There is created in the State Treasury the Smoking Prevention and Cessation Trust Fund. This fund is separate and distinct from the general fund of the State and all other funds. Earnings and interest on this fund must be credited to it and any balance in this fund at the end of a fiscal year carries forward in the fund in the succeeding fiscal year. The trust fund must transfer five million dollars annually to the Department of Health and Environmental Control to administer a statewide smoking prevention and cessation program. The funds must not be appropriated for any other purpose and the Department of Health and Environmental Control may not use the funds for any purposes other than administering a statewide smoking prevention and cessation program.

(B)    There is created the South Carolina Medicaid Reserve Fund. This fund is separate and distinct from the general fund of the State and all other funds. Earnings and interest on this fund must be credited to it and any balance in this fund at the end of a fiscal year carries forward in the fund in the succeeding fiscal year. The fund only may be appropriated for the restoration and maintenance of effort of the Medicaid program as structured at the time this act takes effect, and must not be appropriated for any other purpose. The fund must not be used to expand any component of the existing Medicaid program."

Funds to Department of Agriculture for marketing and branding state-grown crops and disaster relief for state-grown crops

SECTION    4.    Chapter 49, Title 11 of the 1976 Code is amended by adding:

"Section 11-49-55.    Notwithstanding any other provision of law, and to the extent that funds are available and not otherwise committed or restricted by law or by contract, from the trust fund created pursuant to this chapter, the State Treasurer shall direct one million dollars annually for five fiscal years beginning with the first fiscal year in which funds are available, to the Department of Agriculture to cause the marketing and branding of South Carolina agricultural crops or produce as being grown in South Carolina when offered for sale in retail establishments and to assist in relief from natural disasters affecting state-grown crops."

Time effective

SECTION    5.    Except where otherwise provided, this act takes effect upon approval by the Governor.

Ratified the 6th day of May, 2010.

Vetoed by the Governor -- 5/11/2010.

Veto overridden by House -- 5/12/2010.

Veto overridden by Senate -- 5/13/2010.