An Act To Help Deter Youth Smoking and To Help Smokers Quit
Maine Legislature, Session 125, LD 0536
Committee Amendment CA_A_H616 (House)
Amends: 36 MRSA §4381

COMMITTEE AMENDMENT "A " 
to H.P. 419, L.D. 536, Bill, "An Act To Help 
Deter Youth Smoking and To Help Smokers Quit" 
Amend the bill by striking out all of section 5 and inserting the following: 
'Sec. 5. 36 MRSA §4381 is repealed and the following enacted in its place: 
§4381. Disposition of revenue 
The revenue derived from the tax imposed by this chapter and described in section 
4365-G must be distributed as follows: 
1. General Fund. One hundred mills per cigarette must be deposited to the General 
Fund; 
2. Fund for a Healthy Maine. Twenty-five mills per cigarette must be deposited in 
the Fund for a Healthy Maine; 
3. Tax Relief Fund for Maine Residents. Twenty-five mills per cigarette must be 
deposited in the Tax Relief Fund for Maine Residents established in Title 5, section 
1518-A; and 
4. Nursing facilities fund. Twenty-five mills per cigarette must be deposited in the 
nursing facilities fund account in the Department of Health and Human Services. 
Sec. 6. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services - Bureau of 0002 
Initiative: Appropriates funds to notify all cigarette distributors and retailers, print and 
mail floor stock returns, print and mail interim tax stamps, manually track the new 
process and follow up with noncompliant taxpayers. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to H.P. 419, L.D. 536 
GENERAL FUND 
Personal Services 
GENERAL FUND TOTAL 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL - ALL FUNDS 
2011-12 
$14,500 
$14,500 
2011-12 
$14,500 
$14,500 
2012-13 
$14,500 
$14,500 
2012-13 
$14,500 
$14,500 
HEALTH AND HUMAN SERVICES, DEPARTMENT OF (FORMERLY DHS) 
FHM - Bureau of Health 0953 
Initiative: Provides funds for tobacco treatment counseling by a tobacco help line. 
FUND FOR A HEALTHY MAINE 
All Other 
FUND FOR A HEALTHY MAINE TOTAL 
Nursing Facilities 0148 
2011-12 
$800,000 
$800,000 
Initiative: Allocates funds for MaineCare nursing facility services. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
HEALTH AND HUMAN SERVICES, 
DEPARTMENT OF (FORMERLY DHS) 
DEPARTMENT TOTALS 
FUND FOR A HEALTHY MAINE 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL-ALL FUNDS 
2011-12 
$28,050,191 
$28,050,191 
2011-12 
$800,000 
$28,050,191 
$28,850,191 
COMMITTEE AMENDMENT 
2012-13 
$400,000 
$400,000 
2012-13 
$27,561,076 
$27,561,076 
2012-13 
$400,000 
$27,561,076 
$27,961,076 
~ .. " 
COMMITTEE AMENDMENT "A" to H.P. 419, L.D. 536 
SECTION TOTALS 
GENERAL FUND 
FUND FOR A HEALTHY MAINE 
OTHER SPECIAL REVENUE FUNDS 
SECTION TOTAL - ALL FUNDS 
2011-12 
$14,500 
$800,000 
$28,050,191 
$28,864,691 
2012-13 
$14,500 
$400,000 
$27,561,076 
$27,975,576 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
The amendment provides for an allocation of $1.50 that will be generated by the 
cigarette tax increase among the Fund for a Healthy Maine account, the Tax Relief Fund 
for Maine Residents account and the Nursing Facilities Other Special Revenue Funds 
account in the Department of Health and Human Services. The amendment also replaces 
the appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Revised: 06/09111 ;:tvac.. 
LD 536 
LR 1472(02) 
An Act To Help Deter Youth Smoking and To Help Smokers Quit 
Fiscal Note for Bill as Amended by Committee Amendment "1f' 
Committee: Taxation 
Net Cost (Savings) 
General Fund 
Fund for a Healthy Maine 
Appropriations/Allocations 
General Fund 
Fund for a Healthy Maine 
Other Special Revenue Funds 
Revenue 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2011-12 
$19,554,234 
$800,000 
$14,500 
$800,000 
$28,050,191 
FY 2012-13 
$18,889,697 
$400,000 
$14,500 
$400,000 
$27,561,076 
Projections 
FY 2013-14 
$18,226,479 
$400,000 
$14,500 
$400,000 
$27,080,568 
Projections 
FY 2014-15 
$17,584,570 
$400,000 
$14,500 
$400,000 
$26,607,233 
General Fund 
($19,539,734) 
($18,875,197) 
($18,211,979) 
($17,570,07'0) 
Other Special Revenue Funds 
$84,171,073 
$82,702,728 
$81,261,204 
$79,840,699 
Fiscal Detail and Notes 
Increasing the cigarette tax from $2.00 to $3.50 per package of20 and decreasing the discount rate for cigarette tax 
stamps from 1.15% to .75% effective July 1,2011 will result in (1) a General Fund loss of $19,929,234 in fiscal year 
2011-12 and $19,245,697 in fiscal year 2012-13 due to a drop in demand for over 9 million packs per year in sales, 
and (2) a sales tax revenue increase to the General Fund of $389,500 in fiscal year 2012 and $370,500 in fiscal year 
2012-13 and a proportional increase to revenue sharing of $20,500 in fiscal year 2011-12 and $19,500 in fiscal year 
2012-13. The bill as amended credits revenue derived from the cigarette tax rate change at 75 additional mills per 
cigarette as follows: 25 mills to the Fund for a Healthy Maine, 25 mills to the Tax Relief Fund for Maine Residents 
and 25 mills to the Nursing Facilities Other Special Revenue Funds account in the Department of Health and Human 
Services, with a resulting gain to Other Special Revenue Funds of $84, 150,573 in fiscal year 2011-12 and $82,683,227 
in fiscal year 2012-13 . 
LR1472(02) - Fiscal Note - Page I of2 
~A- CH - b/ltJ j 
This bill as amended also includes an appropriation of $14,500 commencing in fiscal year 2011-12 for MRS to 
establish new tax rates, adapt forms and stamps, manually track the new process and to follow-up with any non-
compliant taxpayers. MRS notes that the state may be placed at a greater risk of a tax stamp receivable default due to 
bonding issues that may be faced by the industry as a result of the cigarette tax increase. Also provides a Fund for a 
Healthy Maine allocation of $800,000 in 2011-12 and $400,000 in 2012-13 for tobacco treatment counseling by a 
tobacco help line.