PRINTER'S NO. 784
No. 703 Session of 1989
INTRODUCED BY SAURMAN, CHADWICK, RYBAK, MICOZZIE, REBER,
HECKLER, PHILLIPS, NAHILL, HALUSKA, BROUJOS, DONATUCCI,
JOHNSON, HERSHEY, ADOLPH, GEIST, CIVERA, KUKOVICH, COLAIZZO,
BATTISTO, VEON, FOX, FLICK, CORRIGAN AND MRKONIC,
MARCH 13, 1989
REFERRED TO COMMITTEE ON FINANCE, MARCH 13, 1989
AN ACT
1 Imposing an additional State tax on cigarettes; and specifying
2 that the increase be used to establish a program to assist
3 Pennsylvania tobacco growers in converting to other crops.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Short title.
7 This act shall be known and may be cited as the Cigarette Tax
8 for Agricultural Assistance Act.
9 Section 2. Legislative findings and purpose.
10 (a) Findings.--Due to the growing evidence and established
11 facts of the harmful effects of tobacco use in causing a variety
12 of serious health problems and premature death, the tobacco
13 industry is in a state of decline nationally. Programs on
14 smoking cessation are increasing rapidly. This trend will effect
15 the demand for tobacco and the economy of Pennsylvania tobacco-
16 growing regions.
17 (b) Purpose.--It is the purpose of this act to provide a
1 mechanism to assist Pennsylvania tobacco growers in converting
2 to other crops to prevent financial hardship as tobacco prices
3 decline.
4 Section 3. Imposition of additional tax.
5 In addition to the tax imposed upon cigarettes by Article XII
6 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
7 Reform Code of 1971, an additional State tax at the rate of one-
8 tenth of a cent per cigarette is hereby imposed and assessed
9 upon the sale or possession of cigarettes within this
10 Commonwealth.
11 Section 4. Administration.
12 The additional tax hereby imposed and assessed shall be
13 collected by and paid to the Commonwealth under the same
14 conditions and in the same manner as provided in Article XII of
15 the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
16 Code of 1971, and shall be administered in conformity with that
17 act.
18 Section 5. Agricultural Assistance Augmentation Account.
19 The revenues realized by the Commonwealth as a result of the
20 additional tax imposed by this act shall be paid into the
21 Agricultural Assistance Augmentation Account which is hereby
22 created and which shall be a special restricted receipts account
23 within the General Fund.
24 Section 6. Continuing appropriation.
25 All revenues accruing from time to time in the Agricultural
26 Assistance Augmentation Account are hereby appropriated from the
27 General Fund to the Department of Agriculture for a program of
28 assistance to Pennsylvania tobacco growers, as provided in this
29 act.
30 Section 7. Program.
19890H0703B0784 - 2 -
1 The Department of Agriculture shall have the power and its
2 duty shall be to establish a program to encourage Pennsylvania
3 tobacco growers to make an early transition to the growing of
4 other crops, which program shall include the following:
5 (1) Establishing guidelines for eligibility for the
6 program and procedures for applying for assistance.
7 (2) Developing promotional literature and a means by
8 which Pennsylvania tobacco growers will be notified of the
9 services available.
10 (3) Providing consulting services which will be made
11 available at no cost to tobacco growers interested in
12 converting to other crops, which services may be contracted
13 by the department with outside consultants if the expertise
14 is not available within the department.
15 (4) Providing transition funds, in accordance with
16 guidelines established by the department, for essential
17 services and consumable materials or seed stock to effect
18 conversion to other crops. Such funds shall be provided on a
19 one-time basis per applicant unless the department determines
20 that an additional grant will help prevent financial failure.
21 (5) Compensating tobacco growers for loss of income
22 suffered for a period of one year when converting from the
23 growing of tobacco to other crops.
24 Section 8. Limitation.
25 Funds shall not be made available for the purchase of tools,
26 machinery, fixed or movable equipment, structures or additions
27 to existing structures.
28 Section 9. Covenant not to re-convert.
29 Any person receiving assistance under this act shall be
30 required to covenant that he will not plant tobacco on any lands
19890H0703B0784 - 3 -
1 converted to another crop or on any other land that he owns for
2 a period of at least five years, and any breach of that covenant
3 shall subject such person to repayment to the Commonwealth of
4 any assistance received.
5 Section 10. Termination of program.
6 The program for the assistance to Pennsylvania tobacco
7 growers provided for by this act shall terminate five years from
8 the effective date of this act; but the additional tax and the
9 Agricultural Assistance Augmentation Account created by this act
10 shall continue, and the revenues remaining and thereafter
11 accruing in that account are, as of that time, appropriated from
12 the General Fund to the Department of Health to be used for
13 programs on smoking education and other related health programs.
14 Section 11. Effective date.
15 This act shall take effect in 60 days.
A30L03MRD/19890H0703B0784 - 4 -