H 4888 General Bill, By Rice, Agnew, E.H. Pitts, Ballentine, Clark, Bannister and 
Davenport
 A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION
 12-21-635 SO AS TO IMPOSE AN ADDITIONAL TAX OF 1.5 CENTS PER CIGARETTE AND TO
 PROVIDE THAT THIS TAX MUST BE INCREASED .25 CENT PER CIGARETTE ANNUALLY FOR
 TWO YEARS BEGINNING ONE YEAR AFTER THIS TAX TAKES EFFECT; TO ESTABLISH THE
 YOUTH SMOKING PREVENTION AND CESSATION FUND INTO WHICH MUST BE DEPOSITED FOUR
 PERCENT OF THE REVENUE GENERATED FROM THE IMPOSITION OF THIS TAX TO BE USED BY
 THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL FOR YOUTH SMOKING
 PREVENTION AND CESSATION PROGRAMS; TO PROVIDE THAT ONE PERCENT OF THE REVENUE
 GENERATED FROM THE IMPOSITION OF THIS TAX MUST BE CREDITED TO THE DEPARTMENT
 OF AGRICULTURE FOR RESEARCH AND PROMOTION OF HEALTHY LIFESTYLES WITH FOOD
 GROWN IN THIS STATE; AND TO ESTABLISH THE SOUTH CAROLINA HEALTH AND PREVENTION
 FUND AND TO PROVIDE THAT THE REMAINING REVENUE GENERATED BY THIS TAX MUST BE
 CREDITED TO THIS FUND AND APPROPRIATED ANNUALLY BY THE GENERAL ASSEMBLY TO
 CRITICAL PROGRAMS THAT MEET THE HEALTH NEEDS OF SOUTH CAROLINIANS, INCLUDING
 USING SUCH FUNDS FOR MEDICAID MATCHING FUNDS.

   03/23/06  House  Introduced and read first time HJ-15
   03/23/06  House  Referred to Committee on Ways and Means HJ-15
   04/06/06  House  Member(s) request name added as sponsor:
                     E.H.Pitts, Ballentine, Clark, Bannister, Davenport

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-21-635 SO AS TO IMPOSE AN ADDITIONAL TAX OF 1.5 CENTS PER CIGARETTE AND TO PROVIDE THAT THIS TAX MUST BE INCREASED .25 CENT PER CIGARETTE ANNUALLY FOR TWO YEARS BEGINNING ONE YEAR AFTER THIS TAX TAKES EFFECT; TO ESTABLISH THE YOUTH SMOKING PREVENTION AND CESSATION FUND INTO WHICH MUST BE DEPOSITED FOUR PERCENT OF THE REVENUE GENERATED FROM THE IMPOSITION OF THIS TAX TO BE USED BY THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL FOR YOUTH SMOKING PREVENTION AND CESSATION PROGRAMS; TO PROVIDE THAT ONE PERCENT OF THE REVENUE GENERATED FROM THE IMPOSITION OF THIS TAX MUST BE CREDITED TO THE DEPARTMENT OF AGRICULTURE FOR RESEARCH AND PROMOTION OF HEALTHY LIFESTYLES WITH FOOD GROWN IN THIS STATE; AND TO ESTABLISH THE SOUTH CAROLINA HEALTH AND PREVENTION FUND AND TO PROVIDE THAT THE REMAINING REVENUE GENERATED BY THIS TAX MUST BE CREDITED TO THIS FUND AND APPROPRIATED ANNUALLY BY THE GENERAL ASSEMBLY TO CRITICAL PROGRAMS THAT MEET THE HEALTH NEEDS OF SOUTH CAROLINIANS, INCLUDING USING SUCH FUNDS FOR MEDICAID MATCHING FUNDS.

Whereas, the General Assembly finds that:

(1)    Smoking is the single most important source of preventable disease and premature death in South Carolina.

(2)    The annual health care cost in South Carolina directly caused by smoking is one billion dollars.

(3)    More than eight thousand South Carolina children under the age of eighteen years will become new daily smokers each year.

(4)    Increasing tobacco taxes is an effective way to prevent and reduce smoking, especially among young people. Now, therefore,

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

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

"Section 12-21-635.    (A)    In addition to the tax imposed pursuant to Section 12-21-620(1), there is imposed an additional license tax equal to 1.5 cents on each cigarette made of tobacco or any substitute for tobacco. This tax must be increased by .25 cents on each cigarette made of tobacco or any substitute for tobacco each year over the following two years beginning one year after this section takes effect.

(B)    The tax imposed pursuant to subsection (A) must be reported, paid, collected, and enforced in the same manner as the tax imposed pursuant to Section 12-21-620(1).

(C)(1)    There are created in the state treasury, separate and distinct from the general fund of the State, the Youth Smoking Prevention and Cessation Fund and the South Carolina Health and Prevention Fund. Four percent of the revenue generated by the tax imposed pursuant to this section must be credited to the Youth Smoking Prevention and Cessation Fund and monies in the fund must be used by the Department of Health and Environmental Control in accordance with the Centers for Disease Control recommended comprehensive programs using best practices for youth smoking prevention and cessation programs. One percent of the revenue generated by the tax imposed pursuant to this section must be credited to the Department of Agriculture for research and promotion of healthy lifestyles with food grown in this State. The remaining revenue generated by the tax imposed pursuant to this section must be credited to the South Carolina Health and Prevention Fund. In the annual appropriations act, the General Assembly shall appropriate the monies from the South Carolina Health and Prevention Fund to critical programs that meet health needs of South Carolinians, including using funds for a Medicaid match each year, as needed.

(2)    These funds are exempt from budgetary cuts or reductions caused by the lack of general fund revenues. Earnings on investments of monies in the funds must be credited to the respective fund and used for the same purposes as other monies in the funds. Any monies in the funds not expended during a fiscal year must be carried forward to the succeeding fiscal year and used for the same purposes."

SECTION    2.    This act takes effect on the first day of the second month following the month in which this act is approved by the Governor.