Committee advances tobacco package that reallocates revenue to fund state cancer institute

The Revenue & Tax Committee adopted an amendment and passed House Bill 15 65, a multi‑part tobacco package intended to fund the state cancer institute (NCI) and change several tobacco‑related tax and regulatory provisions.

Committee discussion and the adopted amendment removed a reduced rate for modified risk tobacco products and adjusted other provisions. The bill raises the minimum wholesaler markup from 7.5% to 9.5%, removes certain border‑zone provisions, increases the tax on cigarette papers by $0.50 per package and directs some new medical marijuana‑related tax receipts to the NCI fund. The sponsor also explained a provision phasing in a higher minimum purchase age to 21 by year '21 and discussed preemption language so state law would set standards that now vary by locality.

Paul Gehring of DFA provided a detailed fiscal summary: net general revenue impacts of a $1.7 million loss (FY20 estimate), $1.78 million loss (FY21) and a larger projected general revenue loss of $4.41 million in FY22, with special revenue impacts also negative in early years; proponents pointed to an estimated roughly $5.4 million directed to the NCI fund from a combination of provisions and transfers.

Committee members discussed tradeoffs — raising markups and standardizing border zone rules increase some revenues while raising the purchase age reduces consumption and revenue — and asked whether the proposed revenues would meet the sponsor’s stated funding goals for NCI. The sponsor said the package would bring dedicated money to the cancer institute and that some elements might be adjusted in the Revenue Stabilization Act (RSA) process.

After debate and brief amendments, the committee passed the bill by voice vote with a mix of aye votes; the transcript records no roll‑call tally.