Senate File 279
SENATE FILE
BY LUNDBY
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to substance abuse prevention and treatment,
2 providing for an increase in the cigarette tax, making
3 appropriations, and providing an effective date.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 2378SS 80
6 pf/cl/14
PAG LIN
1 1 Section 1. Section 453A.6, subsection 1, Code 2003, is
1 2 amended to read as follows:
1 3 1. There is imposed, and shall be collected and paid to
1 4 the department, the following taxes on all cigarettes used or
1 5 otherwise disposed of in this state for any purpose
1 6 whatsoever:
1 7 a. Class A.
1 8 (1) On cigarettes weighing not more than three pounds per
1 9 thousand, eighteen mills one and eight=tenths cents on each
1 10 such cigarette.
1 11 (2) In addition to the tax imposed in subparagraph (1), on
1 12 cigarettes weighing not more than three pounds per thousand,
1 13 one and twenty=five one=hundredths cents on each cigarette.
1 14 b. Class B.
1 15 (1) On cigarettes weighing more than three pounds per
1 16 thousand, eighteen mills one and eight=tenths cents on each
1 17 such cigarette.
1 18 (2) In addition to the tax imposed in subparagraph (1), on
1 19 cigarettes weighing not more than three pounds per thousand,
1 20 one and twenty=five one=hundredths cents on each cigarette.
1 21 Sec. 2. NEW SECTION. 453A.6A SUBSTANCE ABUSE TREATMENT
1 22 AND PREVENTION FUND == ESTABLISHED == APPROPRIATIONS.
1 23 1. There is created in the office of the treasurer of
1 24 state a substance abuse treatment and prevention fund. The
1 25 fund consists of the revenues generated from the tax imposed
1 26 on cigarettes pursuant to section 453A.6, subsection 1,
1 27 paragraph "a", subparagraph (2), and paragraph "b",
1 28 subparagraph (2). Moneys in the fund shall be used only as
1 29 specified in this section and are appropriated for the uses
1 30 specified. Moneys deposited in the fund shall not be
1 31 transferred, used, obligated, appropriated, or otherwise
1 32 encumbered except as provided in this section.
1 33 Notwithstanding section 8.33, any unexpended balance in the
1 34 fund at the end of the fiscal year shall be retained in the
1 35 fund. Notwithstanding section 12C.7, subsection 2, interest
2 1 or earnings on investments or time deposits of the moneys in
2 2 the fund shall be credited to the fund.
2 3 2. Moneys in the fund are appropriated for the fiscal year
2 4 beginning July 1, 2003, and annually thereafter, as follows:
2 5 a. Ten million dollars to the Iowa department of public
2 6 health for expansion and maintenance of community=based
2 7 substance abuse treatment programs.
2 8 b. Five million dollars to the department of corrections
2 9 for licensed substance abuse treatment in Iowa prisons.
2 10 c. Three million dollars to the department of corrections
2 11 for the drug court program for adults and juveniles.
2 12 d. One million dollars to the governor's office of drug
2 13 control policy for the diversion to treatment program.
2 14 e. Four million dollars to the governor's office of drug
2 15 control policy for jail=based treatment programs.
2 16 f. Four million dollars to the Iowa department of public
2 17 health to establish and operate a facility for the purpose of
2 18 providing a structured treatment program for persons with a
2 19 substance abuse problem who are on probation and under the
2 20 supervision of a judicial district department of correctional
2 21 services.
2 22 g. Two hundred seventy thousand dollars to the department
2 23 of human services for substance abuse treatment programs at
2 24 the state training school at Eldora.
2 25 h. One hundred twenty thousand dollars to the department
2 26 of human services for substance abuse treatment programs at
2 27 the juvenile home at Toledo.
2 28 i. Two million dollars to the Iowa department of public
2 29 health for comprehensive substance abuse prevention programs.
2 30 j. Fifteen million dollars to the Iowa department of
2 31 public health for the tobacco use prevention and control
2 32 initiative, including efforts at the state and local levels,
2 33 as provided in chapter 142A.
2 34 Sec. 3. Section 453A.35, Code 2003, is amended to read as
2 35 follows:
3 1 453A.35 TAX AND FEES PAID TO GENERAL FUND.
3 2 The proceeds derived from the sale of stamps and the
3 3 payment of taxes, fees and penalties provided for under this
3 4 chapter, and the permit fees received from all permits issued
3 5 by the department, with the exception of the proceeds derived
3 6 from payment of taxes pursuant to section 453A.6, subsection
3 7 1, paragraph "a", subparagraph (2), and paragraph "b",
3 8 subparagraph (2), shall be credited to the general fund of the
3 9 state. All permit fees provided for in this chapter and
3 10 collected by cities in the issuance of permits granted by the
3 11 cities shall be paid to the treasurer of the city where the
3 12 permit is effective, or to another city officer as designated
3 13 by the council, and credited to the general fund of the city.
3 14 Permit fees so collected by counties shall be paid to the
3 15 county treasurer.
3 16 Sec. 4. EFFECTIVE DATE. The section of this Act amending
3 17 section 453A.6, subsection 1, being deemed of immediate
3 18 importance, takes effect upon enactment.
3 19 EXPLANATION
3 20 This bill provides for a tax on cigarettes, in addition to
3 21 the tax of 1.8 cents on each cigarette, of 1.25 cents per
3 22 cigarette. The additional revenues generated are to be
3 23 credited to the substance abuse treatment and prevention fund
3 24 established in the bill. The bill specifies standing
3 25 appropriations of the moneys credited to the fund, annually,
3 26 as follows:
3 27 1. Ten million dollars to the Iowa department of public
3 28 health for expansion and maintenance of community=based
3 29 substance abuse treatment programs.
3 30 2. Five million dollars to the department of corrections
3 31 for licensed substance abuse treatment in Iowa prisons.
3 32 3. Three million dollars to the department of corrections
3 33 for the drug court program for adults and juveniles.
3 34 4. One million dollars to the governor's office of drug
3 35 control policy for the diversion to treatment program.
4 1 5. Four million dollars to the governor's office of drug
4 2 control policy for jail=based treatment programs.
4 3 6. Four million dollars to the Iowa department of public
4 4 health to establish and operate a facility for the purpose of
4 5 providing a structured treatment program for persons with a
4 6 substance abuse problem who are on probation and under the
4 7 supervision of a judicial district department of correctional
4 8 services.
4 9 7. Two hundred seventy thousand dollars to the department
4 10 of human services for substance abuse treatment programs at
4 11 the state training school at Eldora.
4 12 8. One hundred twenty thousand dollars to the department
4 13 of human services for substance abuse treatment programs at
4 14 the juvenile home at Toledo.
4 15 9. Two million dollars to the Iowa department of public
4 16 health for comprehensive substance abuse prevention programs.
4 17 10. Fifteen million dollars to the Iowa department of
4 18 public health for the tobacco use prevention and control
4 19 initiative, including efforts at the state and local levels,
4 20 as provided in Code chapter 142A.
4 21 The portion of the bill relating to the additional tax on
4 22 cigarettes takes effect upon enactment.
4 23 LSB 2378SS 80
4 24 pf/cl/14.1