DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of
the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of
the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Ritchie HB No. 417
Abstract: Increases the tax on cigars, cigarettes, smoking tobacco, and smokeless tobacco and
dedicates the revenue from the tax increase.
Present law provides for the levy of a tax upon the sale, use, consumption, handling, or
distribution of all cigars, cigarettes, and smoking and smokeless tobacco in La.
Present law provides that the rate of the tax for cigars invoiced by the manufacturer at $120 per
thousand or less shall be 8% of the invoice price and the rate of the tax for cigars invoiced by the
manufacturer at more than $120 per 1,000 shall be 20% of the invoice price.
Proposed law increases the tax on cigars invoiced by the manufacturer at $120 per 1,000 or less
from 8% of the invoice price to 68% of the invoice price and increases the tax for cigars invoiced
by the manufacturer at more than $120 per 1,000 from 20% of the invoice price to 68% of the
invoice price.
Present law levies a tax on cigarettes at the rate of 36¢ per pack.
Proposed law increases the tax on cigarettes from 36¢ per pack to $1.41 per pack.
Present law provides that the rate of the tax for smoking tobacco shall be 33% of the invoice
price.
Proposed law increases the tax on smoking tobacco from 33% of the invoice price to 68% of the
invoice price.
Present law provides that the rate of the tax on smokeless tobacco shall be 20% of the invoice
price.
Proposed law increases the tax on smokeless tobacco from 20% of the invoice price to 68% of
the invoice price.
Present law provides for the establishment of the Tobacco Regulation Enforcement Fund to
support enforcement activities of the office of alcohol and tobacco control. Requires the state
treasurer to annually deposit an amount equal to the avails of one-quarter of one-twentieth of one
cent per cigarette from the tax on cigarettes into the fund for purposes of tobacco regulation
enforcement. Proposed law retains present law.
Proposed law creates a special fund within the state treasury to be called the "Louisiana Healthier
Families Fund" in which the state treasurer shall annually deposit an amount equal to the avails
of the additional tax on cigarettes, an amount equal to 60% of the tax imposed on cigars invoiced
by the manufacturer at $120 per 1,000 or less, an amount equal to 48% of the tax imposed on
cigars invoiced by the manufacturer at more than $120 per 1,000 and smokeless tobacco, and an
amount equal to 35% of the tax imposed on smoking tobacco.
Proposed law requires the monies appropriated from the fund to be used solely for the following
purposes in the following amounts:
(1)52% to be deposited into the La. Medical Assistance Trust Fund to provide funding for
the La. Medicaid Program.
(2)10% to provide payments against the unfunded accrued liability of the Louisiana State
Employees' Retirement System and the Teachers' Retirement System of Louisiana, which
shall be in addition to any payments required for the annual amortization of the unfunded
accrued liability of the public retirement systems.
(3)5% to provide funding for the office of state police, Department of Public Safety and
Corrections.
(4)5% to provide funding for the office of addictive disorders within DHH for expenditure
on activities related to smoking cessation and prevention.
(5)5% to provide funding for the office of mental health within DHH for expenditure on
activities related to smoking cessation and prevention.
(6)5% to provide funding to the LSU Board of Supervisors for the LSU Health Sciences
Center in Shreveport, for expenditure on activities related to cancer research or smoking
cessation and prevention.
(7)5% to provide funding to the LSU Board of Supervisors for the Pennington Biomedical
Research Center, for expenditure on cancer research activities.
(8)3% to provide funding to the LSU Board of Supervisors for the Greater New Orleans
Biosciences Economic Development District, for expenditure on activities related to
cancer research or smoking cessation and prevention.
(9)3% to provide funding to the LSU Board of Supervisors for the Louisiana Cancer
Research Consortium.
(10)3% to provide funding to the LSU Board of Supervisors for the University Health
Sciences Center in New Orleans, for expenditure only on activities related to cancer research or smoking cessation and prevention.
(11)2% to provide funding for the office of public health within DHH for school-based health
centers, for expenditure on activities related to smoking cessation and prevention.
(12)2% to provide funding to the Southern University Board of Supervisors for Southern
University for smoking cessation and tobacco prevention programs.
Proposed law prohibits any amounts appropriated as required by proposed law from displacing,
replacing, or supplanting appropriations from the state general fund for DHH, the LSU Board of
Supervisors, or the Southern University Board of Supervisors. Further provides that no
appropriation for any fiscal year from the La. Healthier Families Fund shall be made for any
purpose for which a general fund appropriation was made in the previous year unless the total
appropriations for the fiscal year from the state general fund for such purpose exceed general
fund appropriations for the previous year.
Proposed law requires all entities or agencies receiving appropriations from the fund to report to
the legislature, no less than 30 days prior to the commencement of each regular session,
describing the expenditure of such monies.
Effective Jan. 1, 2014.
(Amends R.S. 47:841(A), (C), and (E); Adds R.S. 47:841(B)(6) and 841.2)