|
REFERENCE TITLE: tobacco products; devices; tax; distributions |
|
State of Arizona Senate Fifty-fourth Legislature First Regular Session 2019
|
|
SCR 1026 |
|
|
|
Introduced by Senator Carter
|
A CONCURRENT RESOLUTION
enacting and ordering the submission to the people of a measure relating to the taxation of tobacco products.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it resolved by the Senate of the State of Arizona, the House of Representatives concurring:
1. Under the power of referendum, as vested in the Legislature, the following measure, relating to the taxation of tobacco products, is enacted to become valid as a law if approved by the voters and on proclamation of the Governor:
An act
amending title 15, chapter 13, article 2, Arizona Revised Statutes, by adding sections 15-1650.05 and 15-1650.06; amending sections 15‑1646 and 15‑1661, Arizona Revised Statutes; amending title 42, chapter 3, Arizona Revised Statutes, by adding article 5; relating to the taxation of tobacco products.
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 15, chapter 13, article 2, Arizona Revised Statutes, is amended by adding sections 15-1650.05 and 15‑1650.06, to read:
15-1650.05. Electronic smoking device and tobacco products tax fund; exemption
A. The electronic smoking device and tobacco products tax fund is established consisting of monies deposited in the fund pursuant to section 42‑3202 and interest earned on those monies. The Arizona board of regents shall administer the fund. Monies in the fund are continuously appropriated.
B. $.73 of each dollar in the fund shall be deposited in the tobacco tax adjustment account established by section 15‑1650.06.
C. $.27 of each dollar in the fund is appropriated to the Arizona board of regents for the purposes of:
1. Providing scholarships pursuant to section 15‑1646, subsection B.
2. Fulfilling the increased funding requirement provided in section 15‑1661, subsection J.
D. monies in the fund Are exempt from the provisions of section 35‑190 relating to lapsing of appropriations.
15-1650.06. Tobacco tax adjustment account
A. The tobacco tax adjustment account is established consisting of monies deposited pursuant to section 15‑1650.05. The department of revenue shall administer the fund.
B. The department of revenue shall transfer the following amounts of account monies to the funds and accounts provided in paragraphs 1 through 13 of this subsection to compensate for decreases in these funds and accounts due to lower tobacco tax revenues available under sections 8‑1181, 36‑601.01, 36‑770, 36‑771, 42‑3102, 42‑3103 and 42‑3104 as a result of the levy of luxury taxes that are dedicated to the electronic smoking device and tobacco products tax fund pursuant to section 42‑3202:
1. $.2628 to the program account established by section 8‑1181.
2. $.0292 to the administrative costs account established by section 8‑1181.
3. $.01095 to the health research fund established by section 36‑275.
4. $.0073 to the smoke‑free Arizona fund established by section 36‑601.01.
5. $.03723 to the health education account established by section 36‑772.
6. $.0073 to the health research account established by section 36‑773.
7. $.16133 to the medically needy account established by section 36‑774.
8. $.00365 to the adjustment account established by section 36‑775.
9. $.0438 to the emergency health services account established by section 36‑776.
10. $.00876 to the health care adjustment account established by section 36‑777.
11. $.09198 to the proposition 204 protection account established by section 36‑778.
12. $.0073 to the corrections fund established by section 41‑1641.
13. $.0584 to the state general fund.
C. Any monies in the account in excess of the amount needed for adjustments revert to the electronic smoking device and tobacco products tax fund established by section 15‑1650.05.
Sec. 2. Section 15-1646, Arizona Revised Statutes, is amended to read:
15-1646. Board of regents and university scholarships; notification requirements; regents scholarships
A. The universities under the jurisdiction of the Arizona board of regents shall establish policies that ensure fair and equitable access by Arizona students from public, private and charter schools and homeschools to scholarships, including tuition waivers, that are issued solely on the basis of academic merit and for which the universities establish and administer fair and equitable selection criteria. The universities under the jurisdiction of the Arizona board of regents shall:
1. Annually report to the board and publish and disclose to the extent permitted by state and federal law the following information related to each merit based scholarship awarded to students from public, private and charter schools and homeschools by each university, for the prior academic year:
(a) The total number and dollar amount of awards and total number of applicants.
(b) The total number and dollar amount of awards and total number of applicants by type of student.
(c) The specific criteria used to award each scholarship, including average and range of SAT and ACT scores.
(d) The number of newly awarded scholarships and the number of renewed scholarships.
2. Notify students in this state of scholarship awards in a timely manner without regard to whether the students are from public, private or charter schools or homeschools.
B. The Arizona board of regents shall annually award regents scholarships to any person who meets all of the following criteria:
1. Is a resident of this state.
2. Obtained a letter grade of A or B, or the EQUIVALENT, in each core academic course that is required for graduation from high school in this state.
3. Is admitted to a university under the jurisdiction of the Arizona board of regents.
Sec. 3. Section 15-1661, Arizona Revised Statutes, is amended to read:
15-1661. Annual appropriation; enrollment audit; expenditure; balance; salaries
A. There shall be appropriated in the general appropriation appropriations bill for each fiscal year a sum of monies not less than eighty‑five one‑hundredths of one mill on the dollar of the assessed valuation of all taxable property in the this state for the improvement to improve, support and maintenance of maintain the institutions under the Arizona board of regents' jurisdiction, including payment of paying salaries, and current expenses, purchase of purchasing equipment, making necessary repairs, construction of constructing new buildings, purchase of purchasing lands and in general paying for payment of all such expenses connected with the management of managing the institutions under the Arizona board of regents' jurisdiction. The department of revenue, upon on compiling the aggregate assessed valuation of all taxable property within this state, shall compute the amount of monies so determined and certify such that amount over its seal to the department of administration and the state treasurer.
B. The full‑time equivalent student enrollment reported for the previous fiscal year by each university shall be audited annually by the auditor general. The auditor general shall report the results of the audit to the staffs of the joint legislative budget committee and the governor's office of strategic planning and budgeting on or before October 15 of each year. On or before July 21 of each academic year, each university shall provide for the previous fall semester a certified report to the auditor general of the number of full‑time equivalent students calculated by the university and a separate report only for those students who meet the residency requirements prescribed in section 15‑1802. The university's records used to calculate full‑time equivalent student enrollment shall be provided to the auditor general in an electronic format prescribed by the auditor general. Beginning in 2006, Each university shall submit to the auditor general a summary of its full‑time equivalent student enrollment accounting policies and procedures, compilation procedures and source records used for calculating full‑time equivalent student enrollment. These accounting policies and procedures, compilation procedures and source records shall comply with policies developed on or before June 30, 2006 by the Arizona board of regents, in consultation with the auditor general and reviewed by the joint legislative budget committee. These policies shall include a review and recommendations of the necessity of minimum requirements for students enrolled in classes to qualify for appropriations pursuant to this section, including requirements that the class be a for‑credit course that is necessary for the completion of completing a degree and that the student enrolled in the course be physically present in this state at the time the course is conducted. The basic actual full‑time equivalent student enrollment shall be counted on the forty‑fifth day after the basic actual full‑time equivalent student enrollment classes begin for the fall and spring semesters, as published in the university catalogs, and divided by two. The Arizona board of regents shall also make recommendations of recommend whether each professor or instructor should be required to review class rosters and make additions or deletions as necessary. If so, class rosters that reflect enrollment as of the forty‑fifth day shall be provided by the registrar's office to each professor or instructor for every class section. The class roster shall indicate the course number, course title, time, instructor name and students enrolled. On the forty‑fifth day class rosters, each professor or instructor shall indicate as withdrawn each student who has formally withdrawn from the course, and that student shall not be counted for state aid purposes. The official forty‑fifth day rosters shall include a manual signature and date or an electronic authorization and date by the professor or instructor and shall include the following certification:
I hereby certify that the information contained in this class roster accurately reflects those students who are enrolled.
C. The Arizona board of regents shall also report the basic actual full-time equivalent student enrollment for only those students who meet the residency requirements prescribed in section 15-1802. The basic actual full‑time equivalent student enrollment for only those students who meet the residency requirements prescribed in section 15-1802 that is reported by each university for the previous fiscal year shall be annually audited by the auditor general.
D. Students who have withdrawn or who have been withdrawn from classes as of the forty‑fifth day shall not be counted for state aid purposes. A record shall be maintained that identifies student withdrawals by date of withdrawal, as of the forty‑fifth day and after the forty‑fifth day for the entire semester.
E. Amounts appropriated as provided by subsection A of this section shall be paid as other claims against this state are paid.
F. The balance of appropriations as provided by subsection A of this section at the end of the fiscal year, if any, shall does not revert to the state general fund but shall be carried forward for the continued use for which appropriated.
G. Monies appropriated to a university under the jurisdiction of the Arizona board of regents for cost of living cost-of-living salary increases for university employees shall be used to provide cost of living cost‑of‑living salary increases to all university employees, including graduate student assistants. If monies are appropriated to a university for salary increases based on merit, the monies shall be used to provide merit increases according to the merit pay plan adopted by the Arizona board of regents.
H. The Arizona board of regents shall determine current actual full‑time equivalent student enrollment at each of the institutions under the jurisdiction of the Arizona board of regents. Full‑time equivalent student enrollment shall be calculated by adding the following:
1. The total number of enrolled fall and spring semester credit hours in 100‑level credit courses and 200‑level credit courses divided by fifteen.
2. The total number of enrolled fall and spring semester credit hours in 300‑level credit courses and 400‑level credit courses divided by twelve.
3. The total number of enrolled fall and spring semester credit hours in graduate level graduate-level credit courses divided by ten.
I. The Arizona board of regents, in its annual budget request, shall not include funding for any student who is enrolled at an institution under the jurisdiction of the Arizona board of regents and who has earned credit hours in excess of the undergraduate credit hour threshold, except that the undergraduate credit hour threshold shall does not apply to students who are enrolled in a degree program that requires credit hours above the credit threshold. For the purposes of this subsection, the undergraduate credit hour threshold is one hundred fifty‑five hours for students who attend a university under the jurisdiction of the board in fiscal year 2006-2007, one hundred fifty hours for students who attend a university under the jurisdiction of the board in fiscal year 2007-2008 and one hundred forty‑five hours for students who attend a university under the jurisdiction of the board after fiscal year 2007-2008. The undergraduate credit hour threshold shall be is based on the actual full‑time equivalent student enrollment counted on the forty‑fifth day after classes begin for the fall and spring semesters and any budget adjustment based on student enrollment shall occur in the fiscal year following the actual full-time equivalent student enrollment count. The undergraduate credit hour threshold shall does not apply to credits earned in the pursuit of pursuing up to two baccalaureate degrees, credits earned in the pursuit of pursuing up to two state regulated state‑regulated licensures and certificates, credits earned in the pursuit of pursuing teaching certification, credits transferred from a private institution of higher education, credits transferred from an institution of higher education in another state, credits earned at another institution of higher education but that are not accepted as transfer credits at the university where the student is currently enrolled and credits earned by students who enroll at a university under the jurisdiction of the board more than twenty-four months after the end of that student's previous enrollment at a public institution of higher education in this state.
J. Beginning in fiscal year 2021‑2022, In addition to the other requirements prescribed in this section, the amount appropriated each fiscal year for improving, supporting and maintaining the institutions under the jurisdiction of the Arizona board of regents, including paying salaries and current expenses, purchasing equipment, making necessary repairs, constructing new buildings, purchasing lands and in general paying for all such expenses connected with managing the institutions under the jurisdiction of the Arizona board of regents, shall be increased by a minimum growth rate of either two percent or the change in the GDP price deflator, as defined in section 41‑563, from the second preceding calendar year to the calendar year immediately preceding the budget year, whichever is less, except that the amount appropriated may not be reduced below the amount appropriated for fiscal year 2021‑2022.
Sec. 4. Title 42, chapter 3, Arizona Revised Statutes, is amended by adding article 5, to read:
ARTICLE 5. ELECTRONIC SMOKING DEVICE AND
TOBACCO PRODUCT TAX FOR HIGHER EDUCATION
42-3201. Levy and collection of tax on electronic smoking devices and tobacco products; definition
A. in addition to all other taxes, there is levied and shall be collected by the department and paid to the state treasurer in the manner provided by this chapter on all electronic smoking devices, cigarettes, cigars, smoking tobacco, plug tobacco, snuff and other forms of tobacco the following additional tax:
1. On each cigarette, $.075.
2. On smoking tobacco, snuff, fine cut chewing tobacco, cut and granulated tobacco, shorts and refuse of fine cut chewing tobacco, shisha and refuse, scraps, clippings, cuttings and sweepings of tobacco, excluding tobacco powder or tobacco products used exclusively for agricultural or horticultural purposes and unfit for human consumption, forty‑three percent of the wholesale price.
3. On all cavendish, plug or twist tobacco, forty‑three percent of the wholesale price.
4. On each twenty small cigars or fractional part weighing not more than three pounds per thousand, forty‑three percent of the wholesale price.
5. On cigars of all descriptions, except those included in paragraph 4 of this subsection, made of tobacco or any tobacco substitute:
(a) If manufactured to retail at not more than $.05 each, forty‑three percent of the wholesale price on each three cigars.
(b) If manufactured to retail at more than $.05 each, forty‑three percent of the wholesale price on each cigar.
6. On electronic smoking devices, seventy‑three percent of the wholesale cost of the product.
B. For the purposes of this section, "electronic smoking device":
1. Means any device that can be used to deliver aerosolized or vaporized nicotine to the individual inhaling from the device, including an e‑cigarette, e‑cigar, e‑pipe, vape pen or e‑hookah.
2. Includes:
(a) Any component, part or accessory of the device, whether or not sold separately.
(b) any substance intended to be aerosolized or vaporized during the use of the device.
3. Does not include:
(a) Any battery or battery charger that is sold separately.
(b) Any Drug, device or combination product that is authorized for sale by the United States food and drug administration. For the purposes of this item, "device" and "drug" have the same meanings prescribed in the federal food, drug, and cosmetic act (21 United States code section 321) and "combination product" means a combination product described in the federal food, drug, and cosmetic act (21 United States code section 353(g)).
42-3202. Disposition of monies; administration
A. The monies collected pursuant to section 42‑3201 Shall be deposited, pursuant to sections 35‑146 and 35‑147, in the electronic smoking device and tobacco products tax fund established by section 15‑1650.05.
B. Unless otherwise provided, the administration of this article is vested in and shall be exercised by the department according to chapters 1 and 2 of this title and articles 1, 2, 3 and 4 of this chapter, this article and articles 6, 9, 10, 11 and 12 of this chapter.
2. The Secretary of State shall submit this proposition to the voters at the next general election as provided by article IV, part 1, section 1, Constitution of Arizona.