2003 House Bill 5221

Public Act 285 of 2003

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• Introduced by Rep. Lorence Wenke on November 4, 2003, to impose a 35-cent per pack "equity assessment" on the sale of cigarettes by tobacco companies which are not parties to the 1998 tobacco settlement. The companies would be required to annually prepay the "assessment" for the coming year, based on a sales estimate made by the Department of Treasury. This refers to the multi-billion dollar out-of-court settlement between tobacco companies and 46 states for compensation to state taxpayers who, through Medicaid and other health care transfer payments, had incurred costs for the medical care of thousands of smokers. The Senate Fiscal Agency estimates that Michigan’s share of the settlement will average around $300 million a year for the next several years.
  • Referred to the House Tax Policy Committee on November 4, 2003.
    • Reported in the House on November 5, 2003, without amendment and with the recommendation that the bill pass.
• Passed in the House (84 to 18) on November 12, 2003, to impose a 35-cent per pack "equity assessment" on the sale of cigarettes by tobacco companies which are not parties to the 1998 tobacco settlement. The companies would be required to annually prepay the "assessment" for the coming year, based on a sales estimate made by the Department of Treasury. This refers to the multi-billion dollar out-of-court settlement between tobacco companies and 46 states for compensation to state taxpayers for the increased cost they may have incurred for the medical care for thousands of smokers. The Senate Fiscal Agency estimates that Michigan’s share of the settlement will average around $300 million a year for the next several years. This bill will levy approximately $3 million in additional "assessments". [Vote Details and Comments]
• Received in the Senate on November 13, 2003.
  • Referred to the Senate Finance Committee on November 13, 2003.
    • Reported in the Senate on December 10, 2003, with the recommendation that the bill pass.
  • Amendment offered in the Senate on December 17, 2003, to clarify certain technical requirements in the bill. The amendment passed in the Senate by voice vote on December 17, 2003.
• Passed in the Senate (30 to 8) on December 17, 2003, to impose a 35-cent per pack "equity assessment" on the sale of cigarettes by tobacco companies which are not parties to the 1998 tobacco settlement. The companies would be required to annually prepay the "assessment" for the coming year, based on a sales estimate made by the Department of Treasury. This refers to the multi-billion dollar out-of-court settlement between tobacco companies and 46 states for compensation to state taxpayers for the increased cost they may have incurred for the medical care for thousands of smokers. The Senate Fiscal Agency estimates that Michigan’s share of the settlement will average around $300 million a year for the next several years. This bill will levy approximately $3 million in additional "assessments". [Vote Details and Comments]
• Received in the House on December 17, 2003.
• Passed in the House (86 to 21) on December 17, 2003, to concur with the Senate-passed version of the bill. [Vote Details and Comments]
• Signed by Gov. Jennifer Granholm on January 8, 2004.

Comments

Introduced by Rep. Lorence Wenke on November 4, 2003. Passed in the House (84 to 18) on November 12, 2003. New Comment