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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.