Researcher: ND Page 1 3/29/23 OLR Bill Analysis sHB 6488 AN ACT CONCERNING CIGARETTES, TOBACCO PRODUCTS, ELECTRONIC NICOTINE DELIVERY SYSTEMS AND VAPOR PRODUCTS. SUMMARY Starting with FY 24, this bill increases, from $12 million to $22.7 million, annual Tobacco Settlement Fund disbursements to the Tobacco and Health Trust Fund. As under current law, any remaining moneys in the Tobacco Settlement Fund must be disbursed to the General Fund. The bill also requires the Department of Mental Health and Addiction Services commissioner, in collaboration with the consumer protection, public health, and revenue services commissioners, to convene a working group to evaluate the licensure fees, penalties, and taxes related to the distribution and sale of cigarettes, tobacco products, e- cigarettes, and vapor products. The working group must advise the above departments of its recommendations for increasing the fees, penalties, and taxes to discourage the use of these products. The commissioners must also jointly report the recommendations to the Public Health and Finance, Revenue and Bonding Committees by January 1, 2024. Under the bill, the commissioners select the working group members, who must include representatives of at least two organizations that administer tobacco cessation programs in Connecticut. EFFECTIVE DATE: July 1, 2023, except the working group provisions are effective upon passage. BACKGROUND Tobacco and Health Trust Fund 2023HB-06488-R000306-BA.DOCX Researcher: ND Page 2 3/29/23 By law, the Tobacco and Health Trust Fund must create a continuing significant source of funds to (1) support and encourage programs to reduce tobacco abuse through prevention, education, and cessation; (2) support and encourage program development for substance abuse reduction; and (3) develop a plan to meet the state’s unmet physical and mental health needs. The trust fund is within the Office of Legislative Management for administrative purposes only. COMMITTEE ACTION Public Health Committee Joint Favorable Substitute Yea 34 Nay 3 (03/20/2023)