HomeMy WebLinkAboutMINUTES - 05251993 - 1.31 A
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To: BOARD OF SUPERVISORS Contra
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FROM Phil Batchelor, County Administrator f Costa
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County
DATE: May. 20, 1993 :. �•`T
1
SUBJECT: LEGISLATION: AB 478 (B. Friedman)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
ADOPT a position in SUPPORT of AB 478 by Assemblywoman Barbara
Friedman, increasing taxes on cigarettes, with the proceeds being
dedicated to specified cancer-related purposes .
BACKGROUND:
The Board of Supervisors has in the past been fully supportive of
efforts to stop smoking and the further regulate smoking in the
workplace and in restaurants, as well as government buildings . The
Board of Supervisors also has a strong record supporting programs
which encourage the elimination of lifestyle factors which can
contribute to preventable health problems . Finally, the Board of
Supervisors has been a leader in efforts to prevent .and treat
cancers of all kinds, but particularly cancers which appear to be
environmentally related or which are caused by such lifestyle
factors as smoking.
Assemblywoman Barbara Friedman has introduced AB 478 . As amended
May 12,1993, AB 478 does all of the following:
.1 . Increase the tax on cigarettes by one mill per cigarette or 2
cents per pack of 20 cigarettes as of January 1, 1994 and
similar levels of tax on stocks of cigarettes on hand as of
January 1, 1994 . This tax would remain in effect only until
January 1, 1997 .
2 . The proceeds from this additional tax would be transmitted to
be deposited in the Breast Cancer Fund, after deducting the
costs incurred by the State Board of Equalization in
collecting the tax.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON M May 25, 1OO-3 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
1 HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT �V ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON
THE DATE SHOWN.MAY"'" Y 2 5 1993
Contact: County Administrator PHIL BATCHELOR.CLERK OF THE BOARD OF
cc: Health Services Director SUPERVISORS AND COUNTY ADMINISTRATOR
Director of Public Health
Les Spahnn, Heim, Noack & Spahnn
BY DEPUTY
-2-
3 . The funds in the Breast Cancer Fund would be distributed, upon
appropriation by the Legislature, as follows :
* 40% to the University of California' s scientific advisory
committee to award grants to researchers for research
with respect to the cause, cure, and prevention of breast
cancer.
* 5% to the Cancer Surveillance Section of the State
Department of Health Services to collect breast cancer-
related data and to conduct breast cancer-related
epidemiological research by the state cancer registry.
* 45% to the breast and cervical cancer control program for
early cancer detection services for uninsured and
underinsured women.
* 10% to the State Department of Health Services for a
campaign to increase awareness and provide education with
respect to breast cancer.
The Health Services Director has recommended that the Board of
Supervisors support AB 478 and this office concurs with that
recommendation. AB 478 was scheduled to be voted on in the
Assembly Revenue & Taxation Committee on May 17 , 1993 .
Contra Costa County
The Board of Supervisors HEALTH SERVICES DEPARTMENT OFFICE OF THE DIRECTOR
Tom Powers, 1st District
Jeff Smith,2nd District Mark Finucane, Director
Gayle Bishop,3rd District 's-'. " 20 Allen Street
Sunne Wright McPeak,4th District .., f \•,• Martinez, Ca;ifornia 94553-3191
Tom Torlakson,5th District (510)370-5003
FAX(510)370-5098
County Administrator
Phil Batchelor rfjs'q'cou �XPy
County Administrator
DATE: April 6, 1993
TO: Claude an arterL
ant County Administrator
FROM: Markf4, , H alth Services Director
SUBJECT: Recommendation to Support AB 478
The Health Services Department strongly recommends that the Board of Supervisors
support AB 478 by Assemblywoman Barbara Friedman. AB 478 would increase the tax on
cigarettes by 2 cents per pack, with the proceeds of the increased tax to be allocated for
breast cancer research, a breast and cervical cancer control program for uninsured women,
and a public education campaign to increase awareness with respect to breast cancer.
Contra Costa County is a leader in efforts to reduce tobacco use. The Board adopted one
of the toughest no smoking Ordinances, which has now been adopted by a majority of the
cities within the county. The Contra Costa Tobacco Prevention Project has been aggressive
on a number of fronts to encourage people, particularly youth, to stop smoking or prevent
them from starting. Research has shown that an increase in the tobacco tax can deter new
smokers, particularly teenagers, from starting smoking.
In addition, the HSD strongly supports allocating the 2 cents per pack tobacco tax revenue
to breast cancer research, prevention and education. A recent report on women's health
by the California Elected Women's Association for Education and Research found that
nearly 16,000 California women were diagnosed with breast cancer in 1989 and 4,258 died.
The report also found that 43% of Latinas, 42% of African-American women and 32% of
White women were diagnosed at a late stage of breast cancer, suggesting a great need for
increased awareness and early detection programs. Funding from the tobacco tax would
help in these efforts. The HSD is exploring other avenues to improve health care for
women as well, such as a women's health training program, similar to our geriatrics rotation
we currently offer.
There's been much-needed increased attention placed on women's health care and research
over the last couple of years. AB 478 will continue those efforts, and the HSD strongly
supports the bill.
cc: Wendel Brunner, M.D.
Merrithew Memorial Hospital&Clinics Public Health • Mental Health • Substance Abuse Environmental Health
Contra Costa Health Plan Emergency Medical Services • Home Health Agency Geriatrics
A-345 (2/93)
AMENDED IN ASSEMBLY MAY 12, 1993
CALIFORNIA LEGISLATURE-1993-94 REGULAR SESSION
ASSEMBLY BILL No. 478
Introduced by Assembly Member Barbara Friedman
(Principal coauthor: Assembly Member Statham)
(Coauthors:Assembly Members.Alpert, Bornstein, Caldera,
Eastin, Terry Friedman, Hannigan, Katz, Klehs,
Margolin, Martinez, and Speier)
(Coauthors: Senators Hughes, McCorquodale, Morgan,
Rosenthal, and Watson)
February 15, 1993
An act to amend Sections 30101 and 30461 of, to add Section
30461.6 to, and to add and repeal Article 3 (commencing with
Section 30131) of Chapter 2 of Part 13 of Division 2 of, the
Revenue and Taxation Code, relating to taxation, to take
effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 478, as amended, B. Friedman. Cigarette tax increase:
Breast Cancer Act of 1993.
The existing Cigarette and Tobacco Products Tax Law
imposes a tax at a rate of 5 mills on every distributor for the
distribution of each cigarette and also imposes a cigarette and
tobacco products surtax at a rate of 12'/2 mills per cigarette
and at a rate for tobacco products equivalent to 171/2 mills per
cigarette.
This bill would increase the tax on cigarettes by one mill per
cigarette or 2¢ per package of 20 cigarettes for distributions
on and after January 1, 1994. It would also impose
compensating floor steek stocks and indicia adjustment taxes
on cigarettes on the operative date of this bill and would make
other related technical changes.
Existing law creates the Cigarette Tax Fund and the
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AB 478 — 2 —
Cigarette
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Cigarette and Tobacco Products Surtax Fund into which the
proceeds of cigarette and tobacco products taxes are 1
deposited and are appropriated, or may only be appropriated, 2
for certain purposes. 3
This bill would provide that the revenue resulting from the 4
bill's increase in cigarette taxes and the imposition of 5
compensatory floor stock taxes on cigarettes shall be 6
deposited in the Breast Cancer Fund, which the bill would 7
create. This bill would provide that the moneys in that fund 8
shall be"a4lable , upon appropriation by the 9
10
Legislature, be allocated to the State Board of 1;qualization
for reimbursement ofall costs incurred in connection with the 11
compensating floor stocks and indicia adjustment taxes and 12
the balance shall be allocated for purposes of breast cancer 13
research, detection services, and education, as provided. 14
This bill would make certain legislative findings and 15
declarations regarding breast cancer. 16
This bill would take effect immediately as a tai: levy, but it 17
would not become operative until January 1, 1994. 18
Vote: 2�3. Appropriation: no. Fiscal committee: yes. tS, 19
State-mandated local program: no. s
' 20
21
The people of the State of California do enact C,is follows: 22
23
1 SECTION I. The Legislature finds and declares as ' '' 24
2 follows: 25
3 (a) Breast cancer is a significant threat to the health of 26
27
4 women. Breast cancer is the most common form of
28
5 cancer in women, and causes the death of a woman in the
6 United States every 12 minutes. 29
7 (b) The incidence of breast cancer continues to 30
8 increase at a dramatic rate. During the past decade, the 3�
9 incidence has increased by 30 percent. In 1960, one 32
10 woman in 20 developed breast cancer over the course of 33
11 her lifetime. By 1992, the probability had increased to one 34
12 woman in eight. At the current rate of increase, in the 35
13 year 2000, one woman in six will develop breast cancer 36
14 over the course of her lifetime. 37
15 (c) Breast cancer exacts an enormous economic toll on 38
16 our society, including over two billion dollars
98 100
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— 3 — AB 478
iicitch the
1 ($2,000,000,000) in direct medical costs, and over eight
ces are eed, 2 billion dollars ($8,000,000,000) in both direct medical and
pri3 indirect costs.
rom the 4 (d) Medical experts still do not know the cause of
.tion of 5 breast cancer, or how to prevent breast cancer.
hall be OW 6 (e) Without access to health care and early detection
1 would '' 7 services, the 2.7 million women in California without
tat fund 8 health care insurance face an unacceptable risk of
i by the 9 discovering that they suffer from breast cancer only after
lization 10 the malignancy has reached an advanced and deadly
with the 11 stage.
xes and 12 (f) The State of California must take the lead in
cancer 13 combating the increasingly rapid spread of breast cancer
ded. 14 and the current lack of knowledge with respect to breast
cgs and 15 cancer's cause and cure, and effective methods of
16 prevention.
y, but it 17 (g) This act shall be known and may be cited as the
18 Breast Cancer. Act of 1993. It is the intent of the
19 Legislature in enacting this act to fund essential research
e: yes. ;� 20 and services with respect to the cause, cure, detection,
21 and prevention of breast cancer, and breast cancer
lows. 22 education.
23 SEC. 2. Section 30101 of the Revenue and Taxation
lares as 24 Code is amended to read:
® 25 30101. Every distributor shall pay a tax upon his or her
iealth of 26 distributions of cigarettes at the rate of one and one-half
form of 27 mills ($0.0015) for the distribution after 4 o'clock a.m. on
Ln in the 28 July 1, 1959, of each cigarette until 12:01 o'clock a.m. on
. 29 August 1, 1967, at the rate of three and one-half mills
to 30 ($0.0035) for the distribution of each cigarette on and
hues the 31 after August 1, 1967, until 12:01 o'clock a.m. on October
160,ad , 32 1 1967 at the rate of five mills ($0.005) on and after 12:01
ou rse of one `' 33 o'clock a.m. on October 1, 1967, until 12:01 a.m. on
nu ''
!d to one 34 January 1, 1994, and at the rate of six mills ($0.006) on and
in the 35 after 12:01 a.m. on January 1, 1994.
k cancer 36 SEC. 3. Article 3 (commencing with Section 30131) is
37 added to Chapter 2 of Part 13 of Division 2 of the Revenue
is toll on 38 and Taxation Code, to read:
dollars r �,
98 100
98 130
AB 478 — 4 -
1
4 -1 Article 3. Floor Stocks and Indicia Adjustment Taxes
2 `
3 30131. For the privilege of holding or storing
4 cigarettes for sale, use, or consumption, a floor tax is
5 hereby imposed upon every dealer and every wholesaler
6 at the rate of one mill ($0.001) for each cigarette in his E
7 or her possession or under his or her control in this state 7
8 at 12:01 a.m. on January 1, 1994.- 8
9 30131.1. Every dealer and every wholesaler shall take 9
10 an inventory as of 12:01 a.m. on January 1, 1994, of all 10
11 cigarettes in his or her possession or under his or her 11
12 control. He or she shall file a report with the board on or 12
13 before February 25, 1994, in a form which the board may 13
14 prescribe, showing the number of cigarettes in his or her 14
15 possession or under his or her control at 12:01 a.m. on 15
16 January 1, 1994. The amount of tax required to be paid on 16
17 the cigarettes shall be computed and shown on the 17
18 dealer's or wholesalers return. 18
19 30131.2. For the privilege of distributing cigarettes as 19
20 a licensed distributor and for holding or storing cigarettes 20
21 for sale, use, or consumption, a floor tax and cigarette 21
22 indicia adjustment tax is hereby imposed upon every 22
23 licensed distributor as follows: 23
24 (a) In the amount of two and one-half cents ($0.0250) 24
25 ($0.025) for each California cigarette tax stamp or meter
25
26 impression bearing the designation "25," in the amount 26
27 of.two cents ($0.02) for each California cigarette tax 27
o,*.0z'i" 28 stamp or meter impression bearing the designation "20," 28
29 and in the amount of one cent ($0.01) for each California 29
30 cigarette tax stamp bearing the designation "10" which is 30
31 affixed to any package of cigarettes, in the possession of 31
32 the licensed distributor or under his or herr control at 32
33 12:01 a.m. on January 1, 1994. 33
34 (b) In the amount of two and one-half cents -($0.0259) 34
35 ($0.025) for each unaffixed California cigarette tax stamp 35
36 bearing the designation "25," two cents ($0.02) for each 36
37 unaffixed California cigarette tax stamp bearing the 37
38 designation "20," and one cent ($0.01) for each unaffixed 38
39 California cigarette tax stamp bearing the designation 39
40 "10" and twenty cents ($0.20) for each unused meter 40
'73 140
t
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— 5 — AB 478
nt Taxes 1 register unit, in the possession of the licensed distributor
+ 2 or under his or her control at 12:01 a.m. on January 1, 1994.
storing
3 30131.3. (a) Every licensed distributor shall take an
4 inventory as of 12:01 a.m. on January 1, 1994, of all
nor tax is 5 packages of cigarettes to which are affixed California
Wholesaler n p g g
Thotte s his 6 cigarette tax stamps or meter impressions and all
this state 7 unaffixed California cigarette tax stamps and unused
8 meter register units in his or her possession or under his
shall take 9 or her control. Every licensed distributor shall file a
)94, of all 10 report with the board on or before February 25, 1994, in
tis or her 11 a form which the board may prescribe, showing:
jard on or 12 (1) The number of California cigarette tax stamps and
oard may s 13 meter impressions, with the designations thereof, which
his or her F 14 were affixed to packages of cigarettes in his or her
1 a.m. on 15 possession or under his or her control at 12:01 a.m. on
►e paid on 16 January 1, 1994.
a on the 17 (2) The number of unaffixed California cigarette tax
18 stamps, with the designations thereof, and unused meter
arettes as 19 register units which were in his or her possession or under
I-i arettes ( ` 20 his or her control at 12:01 a.m. on January 1, 1994.
g t2'�
cigarette 21 (b) The amount of tax required to be paid with respect
,on every 22 to the stamps, meter impressions, and meter register
23 units shall be computed and shown on the distributor's
42;G�� �i + k ,,, 24 return.
or meter z 25 30131.4. The taxes required to be paid by this article
e amount 26 are due and payable on or before February 25, 1994.
Lrette tax 27 Payments shall be made by remittances payable to the
.tion "20," 28 board and the payments shall accompany the reports
California 29 required to be filed by this article. Any amount required
" which is 30 to be paid by this article which is not timely paid shall
session of 31 bear interest at the rate and by the method established
�ontrol at 32 pursuant to Section 30202 from February 25, 1994, until
�. 33 paid, and shall be subject to determination, and
g� 34 redetermination, and any penalties provided with
tax stamp 35 respect to determinations and redeterminations.
) for each 36 30131.5. This article shall remain in effect only until
aring the 37 January 1, 1997, and as of that date is repealed.
unaffixed 38 SEC. 4. Section 30461 of the Revenue and Taxation
�signation 39 Code is amended to read:
ed meter 40 30461. All amounts required to be paid to the state
83 140 OR I'M
AB 478
1 under this part shall be paid to the board in the form of
2 remittances payable to the State Board of Equalization .
3 Except as provided in Section 30461.6, the board shall
4 transmit the payments to the Treasurer to be deposited
5 in the State Treasury to the credit of the: Cigarette Tax
6 Fund, which is hereby created.
7 SEC. 5. Section 30461.6 is added to the Revenue and
8 Taxation Code, to read:
9 30461.6. Notwithstanding Section 30461, the board
10 shall transmit the revenue derived from the increase in
11 the cigarette tax rate of one mill ($0.001) per cigarette
12 imposed by Section 30101 on and after January 1, 1994,
13 and from the taxes imposed pursuant to Article . 3
14 (commencing with Section 30131) of Chapter 2, to the
15 Treasurer to be deposited in the State Treasury to the
16 credit of the Breast Cancer Fund, which fund is hereby
17 created. The moneys in the fund shall lie et-vai e feT-
18 43,y the r „,islettir-e es
19 upon appropriation by the Legislature, be allocated to
20 the board for reimbursement of all costs incurred in
21 connection with the collection of the taxes imposed
22 pursuant to Article 3 (commencing with Section 30131)
23 of Chapter 2 and the balance shall be allocated as follows:
24 (a) Forty-five percent to be allocated for research
25 with respect to the cause, cure, and prevention of breast
26 cancer, as follows:
. 27 (1) Forty percent to the University of California's
28 scientific advisory committee established pursuant to
29 Article 8.7 (commencing with Section 421.10) of Chapter
30 2 of Part 1 of Division 1 of the Health and Safety Code,
31 for the awarding of grants to researchers for research
32 with respect to the cause, cure, prevention, and early
33 detection of breast cancer and with respect to the
34 cultural barriers to accessing the health care system for
35 early detection and treatment of breast cancer, based on
36 the merits of specific proposals and specific research
37 priorities established by a panel of experts convened by
38 the committee. The panel of experts shall consist of
39 researchers from public and private institutions, and
40 representatives from voluntary, nonprofit health
98 ].90
- 7 — AR 478
1 organizations, health care professional organizations,
form of 2 breast cancer survivor groups, and breast cancer-related
lization . 3 advocacy groups. It is the intent of the Legislature that
and shall 4 the membership of the panel broadly reflect the ethnic,
!eposited 5 racial, cultural, economic, and geographic diversity and
ette Tax ► 6 gender balance of the state. The panel of experts shall be
7 convened and shall establish specific research priorities
'nue and 8 prior to the scientific advisory committee issuing a
9 Request For Proposals (RFP) with respect to research
to board 10 grants, and may be reconvened by the scientific advisory
grease in 11 committee as necessary.
:igarette 12 (2) Five percent to the Cancer Surveillance Section of
1 1994 13 the State Department of Health Services for the
,rticle 3 14 collection of breast cancer-related data and the conduct
2, to the 15 of breast cancer related epidemiological research by the
-y to the 16 state cancer registry established pursuant to Section 211.3
s hereby 17 of the Health and Safety Code.
e 18 (b) Forty-five percent to be allocated to the breast and
.tum es , 19 cervical cancer control program undertaken by the state
►ca ted to 20 pursuant to Public Lave 101-354 for the provision of early
urred in 21 breast cancer detection services for uninsured and
imposed 22 underinsured women. Those services shall include all of
n 30131) 23 the following:
s follows: 24 (1) Mammography screening of women for breast
research 25 cancer as an early detection health care measure.
of breast 26 (2) Medical referral of screened women for definitive
27 diagnosis, including sonograms or biopsy, and, to the
tlifornia's 28 extent practical, followup services for those women. If
•suant to 29 followup services cannot be provided, then assistance
Chapter 30 shall be provided to help the person obtain necessary
.ty Code, 31 followup services.
research 32 (3) Educational and training programs for health care
,nd early 33 professionals, including allied health care professionals, to
t to the ► 34 improve the detection and control of breast cancer, and
stem for 35 communication with breast cancer patients after
based on 36 diagnosis.
research 37 (4) Outreach to groups with high proportions of
vened by 38 uninsured women.
,onsist of 39 (c) Ten percent to be allocated to the State
.ons, and 40 Department of Health Services for a campaign to
health
98 210
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AB 478 — 8 —
I
8 -
1 increase awareness and provide education with respect
2 to breast cancer, including steps to ensure early
3 detection. In developing this campaign, the department
4 shall consult with an advisory panel appointed by the
5 State Director of Health Services and consisting of breast
6 cancer researchers, and representatives from voluntary,
7 nonprofit health organizations, health care professional ,
8 organizations, breast cancer survivor groups, and breast
9 cancer-related advocacy groups. It is the intent of the
10 Legislature that the membership of the panel broadly
11 reflect the ethnic, racial, cultural, economic, and
12 geographic diversity and gender balance of the state..
13 SEC. 6. This act provides for a tax levy within the
14 meaning of Article IV of the Constitution and shall go into
15 immediate effect. However, the provisions of this act
16 shall become operative on January 1, 1994.
O
98 210