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Committee pushes back on broad tobacco‑tax rewrite tying UNH funding and health premiums
Summary
A proposal to raise the tobacco tax and use revenue for university support and to replace certain health program premiums drew skeptical questions from committee members. Opponents warned the proposal would create recurring appropriations and uncertain revenue, and the committee ultimately recommended ITL (11–8).
House Bill 1596 combined two major ideas: raising the cigarette tax and channeling new revenue toward university funding while repealing certain health program premiums. Supporters argued raising the tobacco tax would both deter smoking and generate revenue for health and higher‑education priorities.
Committee concerns and sponsor response: During the work session Representative Cole urged caution. He warned that the bill would create a permanent $18 million annual appropriation for the university and simultaneously repeal premiums designed to offset general‑fund costs for healthcare programs, producing a projected shortfall for FY2027. "This is a net zero shell game, not new funding for education," Cole said during executive session.
Outcome: In executive session the committee voted ITL (inexpedient to legislate) on HB1596 by a 11–8 margin. Members who supported ITL cited fiscal uncertainty, potential long‑term general fund impacts, and a need for more work on offsets and phase‑in provisions. Members opposing ITL supported the public‑health and revenue rationale for a larger, immediate increase in the tobacco tax as a deterrent.
What to watch: The committee asked staff for clearer fiscal modeling; sponsors said they might pursue narrower or phased proposals in future sessions.
