An Act To Reduce Youth Smoking and Improve Public Health by Increasing Revenue from the Cigarette Tax to the Fund for a Healthy Maine and To Pay Debts Owed to Health Care Providers
Maine Legislature, Session 126, LD 1406
Committee: Taxation
Sponsors: FARNSWORTH, BEAVERS, BERRY, BRIGGS, BROOKS, EVANGELOS, GRAHAM, HAMANN, HUBBELL, KNIGHT, MASTRACCIO, RYKERSON, SANBORN, STUCKEY, TREAT, WELSH
Amends: 36 MRSA §4365-F, 36 MRSA §4365-G, 36 MRSA §4366-A, 36 MRSA §4366-E

Legislative Document 
No. 1406 
H.P. 1002 
House of Representatives, April 12, 2013 
An Act To Reduce Youth Smoking and Improve Public Health by 
Increasing Revenue from the Cigarette Tax to the Fund for a 
Healthy Maine and To Pay Debts Owed to Health Care Providers 
(EMERGENCY) 
Reference to the Committee on Taxation suggested and ordered printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative FARNSWORTH of Portland. 
Cosponsored by Representatives: BEAVERS of South Berwick, BERRY of Bowdoinham, 
BRIGGS of Mexico, BROOKS of Winterport, EVANGELOS of Friendship, GRAHAM of 
North Yarmouth, HAMANN of South Portland, HUBBELL of Bar Harbor, KNIGHT of 
Livermore Falls, MASTRACCIO of Sanford, RYKERSON of Kittery, SANBORN of Gorham, 
STUCKEY of Portland, TREAT of Hallowell, WELSH of Rockport. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, this legislation needs to take effect before the expiration of the 90-day 
period in order to help prevent tobacco use by children and help smokers quit smoking; 
and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §4365-F, as enacted by PL 2005, c. 457, Pt. AA, §3 and 
affected by §8, is repealed. 
Sec. 2.  36 MRSA §4365-G is enacted to read: 
§4365-G.  Application of cigarette tax rate increase effective July 1, 2013 
The following provisions apply to cigarettes held for resale on July 1, 2013. 
1.  Stamped rate.  Cigarettes stamped at the rate of 100 mills per cigarette and held 
for resale after June 30, 2013 are subject to tax at the rate of 175 mills per cigarette. 
2.  Liability.  A person possessing cigarettes for resale is liable for the difference 
between the tax rate of 175 mills per cigarette and the tax rate of 100 mills per cigarette in 
effect before July 1, 2013.  Stamps indicating payment of the tax imposed by this section 
must be affixed to all packages of cigarettes held for resale as of July 1, 2013, except that 
cigarettes held in vending machines as of that date do not require that stamp. 
3.  Vending machines.  Notwithstanding any other provision of this chapter, it is 
presumed that all cigarette vending machines are filled to capacity on July 1, 2013 and 
that the tax imposed by this section must be reported on that basis.  A credit against this 
inventory tax must be allowed for cigarettes stamped at the rate of 175 mills per cigarette 
placed in vending machines before July 1, 2013. 
4.  Payment.  Payment of the tax imposed by this section must be made to the 
assessor by September 1, 2013, accompanied by forms prescribed by the assessor. 
Sec. 3.  36 MRSA §4366-A, sub-§2, ¶D, as amended by PL 2007, c. 438, §93, is 
further amended to read: 
D.  For stamps at the face value of 100 175 mills, the discount rate is 1.15% 0.75%. 
Sec. 4.  36 MRSA §4366-E is enacted to read: 
§4366-E.  Additional tax 
1.  Additional tax.  Beginning July 1, 2013, an additional tax is imposed on all 
cigarettes imported into this State or held in this State by any person for sale at the rate of 
mills for each cigarette.  The tax imposed under this section must be added to the tax 
imposed under section 4365 and collected and administered in the same manner as the tax 
under that section.  Payment of the tax is evidenced by the affixing of stamps to the 
packages containing the cigarettes. 
2.  Transfers.  The State Controller shall make the following transfers from revenues 
received under this section. 
A.  The State Controller shall transfer to the Fund for a Healthy Maine $20,382,200 
in fiscal year 2013-14 and $19,832,200 in fiscal year 2014-15.  In subsequent fiscal 
years, the State Controller shall transfer to the Fund for a Healthy Maine a percentage 
of revenue collected under this section that is equal to the percentage of revenue 
transferred under this paragraph in fiscal years 2013-14 and 2014-15. 
B.  The State Controller shall transfer the balance of revenue collected under this 
section after the transfer required under paragraph A to the Medical Care - Payments 
to Providers program in the Department of Health and Human Services to be used to 
retire amounts determined by the Commissioner of Health and Human Services to be 
owed to health care providers for services provided prior to December 1, 2012.  
When, as determined by the commissioner, there exist no outstanding amounts owed 
to health care providers for services provided prior to December 1, 2012, the State 
Controller shall transfer the balance of revenue to the General Fund. 
Sec. 5.  Appropriations and allocations.  The following appropriations and 
allocations are made. 
EDUCATION, DEPARTMENT OF  
FHM - School Nurse Consultant 0949 
Initiative: Allocates funds for a school nurse consultant. 
GENERAL FUND 
2013-14
2014-15
POSITIONS - LEGISLATIVE COUNT 
1.000
1.000
Personal Services 
$95,000
$95,000
All Other 
$8,000
$8,000
GENERAL FUND TOTAL 
$103,000
$103,000
EDUCATION, DEPARTMENT OF  
DEPARTMENT TOTALS 
2013-14
2014-15
GENERAL FUND 
$103,000
$103,000
FINANCE AUTHORITY OF MAINE 
FHM - Dental Education 0951 
Initiative: Allocates funds for dental education programs. 
FHM - Health Education Centers 0950 
Initiative: Allocates funds for health education centers. 
FHM - Quality Child Care 0952 
Initiative: Allocates funds for quality child care programs. 
HEALTH AND HUMAN SERVICES, DEPARTMENT OF (FORMERLY BDS) 
FHM - Substance Abuse 0948 
Initiative: Allocates funds for substance abuse programs. 
DEPARTMENT TOTAL - ALL FUNDS 
$103,000
$103,000
GENERAL FUND 
2013-14
2014-15
All Other 
$28,000
$28,000
GENERAL FUND TOTAL 
$28,000
$28,000
GENERAL FUND 
2013-14
2014-15
All Other 
$12,000
$12,000
GENERAL FUND TOTAL 
$12,000
$12,000
GENERAL FUND 
2013-14
2014-15
All Other 
$160,000
$160,000
GENERAL FUND TOTAL 
$160,000
$160,000
FINANCE AUTHORITY OF MAINE 
DEPARTMENT TOTALS 
2013-14
2014-15
GENERAL FUND 
$200,000
$200,000
DEPARTMENT TOTAL - ALL FUNDS 
$200,000
$200,000
HEALTH AND HUMAN SERVICES, DEPARTMENT OF (FORMERLY DHS) 
FHM - Bureau of Health 0953 
Initiative: Allocates funds for tobacco treatment medication and counseling by a tobacco 
helpline. 
FHM - Bureau of Health 0953 
Initiative: Allocates funds for community school grants. 
FHM - Bureau of Health 0953 
Initiative: Allocates funds for tobacco prevention, control and treatment programs. 
FHM - Bureau of Health 0953 
Initiative: Allocates funds for public health infrastructure programs. 
GENERAL FUND 
2013-14
2014-15
All Other 
$3,200,000
$3,200,000
GENERAL FUND TOTAL 
$3,200,000
$3,200,000
HEALTH AND HUMAN SERVICES, 
DEPARTMENT OF (FORMERLY BDS) 
DEPARTMENT TOTALS 
2013-14
2014-15
GENERAL FUND 
$3,200,000
$3,200,000
DEPARTMENT TOTAL - ALL FUNDS 
$3,200,000
$3,200,000
GENERAL FUND 
2013-14
2014-15
All Other 
$1,100,000
$550,000
GENERAL FUND TOTAL 
$1,100,000
$550,000
GENERAL FUND 
2013-14
2014-15
All Other 
$3,750,000
$3,750,000
GENERAL FUND TOTAL 
$3,750,000
$3,750,000
GENERAL FUND 
2013-14
2014-15
All Other 
$800,000
$800,000
GENERAL FUND TOTAL 
$800,000
$800,000
FHM - Bureau of Health 0953 
Initiative: Allocates funds for home visit programs. 
FHM - Bureau of Health 0953 
Initiative: Allocates funds for oral health programs. 
FHM - Donated Dental 0958 
Initiative: Allocates funds for the donated dental program. 
FHM - Family Planning 0956 
Initiative: Allocates funds for family planning programs. 
FHM - Head Start 0959 
Initiative: Allocates funds for Head Start programs. 
GENERAL FUND 
2013-14
2014-15
All Other 
$100,000
$100,000
GENERAL FUND TOTAL 
$100,000
$100,000
GENERAL FUND 
2013-14
2014-15
All Other 
$5,150,000
$5,150,000
GENERAL FUND TOTAL 
$5,150,000
$5,150,000
GENERAL FUND 
2013-14
2014-15
All Other 
$630,000
$630,000
GENERAL FUND TOTAL 
$630,000
$630,000
GENERAL FUND 
2013-14
2014-15
All Other 
$4,200
$4,200
GENERAL FUND TOTAL 
$4,200
$4,200
GENERAL FUND 
2013-14
2014-15
All Other 
$450,000
$450,000
GENERAL FUND TOTAL 
$450,000
$450,000
FHM - Immunization Z048 
Initiative: Allocates funds for immunization programs. 
FHM - Purchased Social Services 0961 
Initiative: Allocates funds for child care services. 
FHM - Service Center 0957 
Initiative: Allocates funds to provide a single point of access for purchasing social 
services and to coordinate licensing and auditing. 
PUBLIC SAFETY, DEPARTMENT OF  
FHM - Fire Marshal 0964 
GENERAL FUND 
2013-14
2014-15
All Other 
$160,000
$160,000
GENERAL FUND TOTAL 
$160,000
$160,000
GENERAL FUND 
2013-14
2014-15
All Other 
$125,000
$125,000
GENERAL FUND TOTAL 
$125,000
$125,000
GENERAL FUND 
2013-14
2014-15
All Other 
$2,430,000
$2,430,000
GENERAL FUND TOTAL 
$2,430,000
$2,430,000
GENERAL FUND 
2013-14
2014-15
All Other 
$780,000
$780,000
GENERAL FUND TOTAL 
$780,000
$780,000
HEALTH AND HUMAN SERVICES, 
DEPARTMENT OF (FORMERLY DHS) 
DEPARTMENT TOTALS 
2013-14
2014-15
GENERAL FUND 
$15,479,200
$14,929,200
DEPARTMENT TOTAL - ALL FUNDS 
$15,479,200
$14,929,200
Initiative: Allocates funds for the Office of the State Fire Marshal to assist in the 
inspection of day care facilities, nursing homes and medical facilities. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect July 1, 2013. 
SUMMARY 
This bill increases the cigarette tax by $1.50 per package, from $2.00 to $3.50, to 
help deter the initial use of cigarettes by youth.  It includes an appropriations and 
allocations section to fund certain programs through the Fund for a Healthy Maine and 
provides that any remaining funds must be used to retire debts owed to health care 
providers for services provided prior to December 1, 2012. 
GENERAL FUND 
2013-14
2014-15
All Other 
$1,400,000
$1,400,000
GENERAL FUND TOTAL 
$1,400,000
$1,400,000
PUBLIC SAFETY, DEPARTMENT OF  
DEPARTMENT TOTALS 
2013-14
2014-15
GENERAL FUND 
$1,400,000
$1,400,000
DEPARTMENT TOTAL - ALL FUNDS 
$1,400,000
$1,400,000
SECTION TOTALS 
2013-14
2014-15
GENERAL FUND 
$20,382,200
$19,832,200
SECTION TOTAL - ALL FUNDS 
$20,382,200
$19,832,200