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New 12 Cents Cigarette Tax (HB
157 - Act 19)
A new 12¢ per pack cigarette tax will be in effect in FY03. It
is estimated that the new tax will generate approximately $27.3
million in FY03. The five-year forecast estimates the tax will
produce roughly $44 million in FY04 and in the low $40 million
range thereafter.
All proceeds of the tax will be deposited directly in the
Tobacco Tax Health Care Fund and will be expended based on
allocations specified in the Act:
3¢ for the Louisiana Cancer Research Center of the LSU
Health Sciences Center in New Orleans and Tulane University Health
Sciences Center
- The LSU Health Sciences Center in New Orleans and Tulane
University Health Sciences Center are proposing the creation
of a new cancer research consortium to join the resources and
expertise of the state's two main medical research
institutions in the fight against cancer.
- The ultimate goal of the Louisiana Cancer Research Center is
to join the current resources of the two independent cancer
centers operated by each university into one coordinated
venture that becomes a National Cancer Institute (NCI)
designated cancer center capable of attracting a first rate
faculty, putting Louisiana on the map in the field of cancer
research, including the development of new drug therapies, and
providing cutting edge cancer treatments to Louisiana's in
Louisiana.
- The roughly $6.84 million generated in FY03 by this portion
of the new tobacco tax revenues would be dedicated to ensuring
the success of this venture.
- The preliminary plans for this endeavor require the
construction of a building to house the Louisiana Cancer
Research Center, the acquisition of technologies and equipment
necessary for this type of research, and the retention of
faculty and staff to operate the center.
2.04¢ to the Louisiana Cancer Research Center for Smoking
Prevention and Cessation Initiatives
- This portion of the monies generated under this legislation
is estimated at $4.65 million for FY03 and will be spent on
general smoking prevention, treatment, and cessation programs
benefiting the overall health of Louisiana's citizens.
- Specifically, these proceeds shall be used for the creation
of smoking prevention mass media programs and evidence-based
tobacco control programs within the public hospital system and
the public school system. The dedication specifies that
Southern University will participate in the planning and
expenditure of the funds dedicated to creating these programs.
- These funds shall also be used for the creation of community
development programs directed at cessation among children and
pregnant women.
- Finally, these new funds shall also be used to support the
screening, prevention, and treatment of tobacco use and
dependence among persons with diseases caused or exacerbated
by tobacco use.
1.96¢ for the LSU Health Science Center in Shreveport
- The LSU Health Sciences Center in Shreveport operates the
Feist-Weiller Cancer Center. This Cancer Center will be the
primary recipient of these new tobacco tax generated monies.
- The enhanced funding will be utilized to add 8 positions for
a cost of $665,500 to the Basic Science Research Programs -
specifically, the Gene Therapy and Cancer Prevention programs
- and Clinical Research Program. Included in this allocation
are the recruitment of faculty and a research nurse and the
addition of clerical support staff to assist in the operations
of the enhanced programs.
- $100,000 will be used for operating services and supplies
for the Partners in Wellness Program, a prevention and
screening program targeting the underserved. These funds will
be used specifically for the operation of clinics and the
costs of mammograms, prostate exams and pap smears.
- The remaining $3.7 million will be used to equip the new
clinical cancer facility now under construction that is
scheduled for completion in January 2004. · 1¢ for the
Office for Addictive Disorders.
- Currently, the Office for Addictive Disorders (OAD) has the
capacity to meet only nine percent of the needs for adult
treatment services and four and one-half percent of the needs
for adolescent treatment services.
- With this new funding of $2.27 million, OAD will leverage
these funds to the fullest extent possible to increase
treatment services statewide for those suffering from
addictive disorders to better serve the addictive disorder
treatment needs of the citizens of Louisiana.
- OAD also plans to utilize a portion of these funds to
fulfill data collection requirements for which funding was
requested but not granted during the formulation of the
agency's FY03 budget.
1¢ for the LSU Agricultural Center and the Southern
University Agricultural Research and Extension Center
- The $1.27 million appropriated to the LSU AgCenter from this
new tax on tobacco products will be used to fund operating
expenses.
- Act 19 contains a provision dedicating $1 million of the tax
proceeds to the Southern University Agricultural Center.
Southern University will use this $1 million in FY03 to
address operating costs of the its Agricultural Center.
1¢ for the Drug Abuse Resistance Education (D.A.R.E.)
Program
- This 1¢ dedication in the Tobacco Tax Health Care Fund will
generate roughly $2.9 million for the administration and
operation of the Drug Abuse Resistance Education program (D.A.R.E.)
in FY03.
2¢ for the Department of Public Safety
- The $4.5 million generated by this dedication in FY03 shall
be used in the Department of Public Safety.
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