requires two-thirds majority vote (§§ 1, 3)                                                                                                            

                                                                                                  

 

Senate Bill No. 461–Committee on Human
Resources and Facilities

 

(On Behalf of the Task Force for the Fund for
a Healthy Nevada (A.B. 474, NRS 439.625))

 

March 24, 2003

____________

 

Referred to Committee on Taxation

 

SUMMARY—Increases tax on cigarettes and revises manner in which revenue from tax is allocated. (BDR 32‑259)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to taxation; increasing the tax on cigarettes; revising the manner in which the proceeds of the tax are allocated; establishing a program to provide scholarships to certain students who are enrolled in a program of the University and Community College System of Nevada to become health care professionals and providing funding for that program from revenue from that tax; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. NRS 370.165 is hereby amended to read as follows:

1-2  370.165  There is hereby levied a tax upon the purchase or

1-3  possession of cigarettes by a consumer in the State of Nevada at the

1-4  rate of [17.5] 50 mills per cigarette. The tax may be represented and

1-5  precollected by the affixing of a revenue stamp or other approved

1-6  evidence of payment to each package, packet or container in which

1-7  cigarettes are sold. The tax must be precollected by the wholesale or

1-8  retail dealer, and must be recovered from the consumer by adding

1-9  the amount of the tax to the selling price. Each person who sells

1-10  cigarettes at retail shall prominently display on his premises a notice

2-1  that the tax is included in the selling price and is payable under the

2-2  provisions of this chapter.

2-3  Sec. 2.  NRS 370.260 is hereby amended to read as follows:

2-4  370.260  1.  All taxes and license fees imposed by the

2-5  provisions of NRS 370.001 to 370.430, inclusive, less any refunds

2-6  granted as provided by law, must be paid to the Department in the

2-7  form of remittances payable to the Department.

2-8  2.  The Department shall:

2-9  (a) As compensation to the State for the costs of collecting the

2-10  taxes and license fees, transmit each month the sum the Legislature

2-11  specifies from the remittances made to it pursuant to subsection 1

2-12  during the preceding month to the State Treasurer for deposit to the

2-13  credit of the Department. The deposited money must be expended

2-14  by the Department in accordance with its work program.

2-15      (b) From the remittances made to it pursuant to subsection 1

2-16  during the preceding month, less the amount transmitted pursuant to

2-17  paragraph (a), transmit each month the portion of the tax which is

2-18  [equivalent to 12.5] :

2-19          (1) Equivalent to 25.5 mills per cigarette to the State

2-20  Treasurer for deposit to the credit of the Account for the Tax on

2-21  Cigarettes in the State General Fund.

2-22          (2) Equivalent to 6.5 mills per cigarette to the State

2-23  Treasurer for deposit to the credit of the Fund for a Healthy

2-24  Nevada created pursuant to NRS 439.620.

2-25          (3) Equivalent to 6.5 mills per cigarette to the State

2-26  Treasurer for deposit to the credit of the Fund to Provide

2-27  Scholarships to Students Enrolled in Programs to become Health

2-28  Care Professionals created pursuant to section 6 of this act.

2-29      (c) Transmit the balance of the payments each month to the

2-30  State Treasurer for deposit in the Local Government Tax

2-31  Distribution Account created by NRS 360.660.

2-32      (d) Report to the State Controller monthly the amount of

2-33  collections.

2-34      3.  The money deposited pursuant to paragraph (c) of

2-35  subsection 2 in the Local Government Tax Distribution Account is

2-36  hereby appropriated to Carson City andto each of the counties in

2-37  proportion to their respective populations and must be credited to

2-38  the respective accounts of Carson City and each county.

2-39      Sec. 3.  NRS 370.350 is hereby amended to read as follows:

2-40      370.350  1.  Except as otherwise provided in subsection 3, a

2-41  tax is hereby levied and imposed upon the use of cigarettes in this

2-42  state.

2-43      2.  The amount of the use tax is [17.5] 50 mills per cigarette.

2-44      3.  The use tax does not apply where:

3-1  (a) Nevada cigarette revenue stamps have been affixed to

3-2  cigarette packages as required by law.

3-3  (b) Tax exemption is provided for in this chapter.

3-4  Sec. 4.  Chapter 396 of NRS is hereby amended by adding

3-5  thereto the provisions set forth as sections 5 to 8, inclusive, of this

3-6  act.

3-7  Sec. 5.  As used in sections 5 to 8, inclusive, of this act, unless

3-8  the context otherwise requires, “health care professional” means:

3-9  1.  A dentist.

3-10      2.  A licensed practical nurse as defined in NRS 632.016.

3-11      3.  A nursing assistant as defined in NRS 632.0166.

3-12      4.  A practitioner of respiratory care as defined in

3-13  NRS 630.023.

3-14      5.  A registered nurse as defined in NRS 632.019.

3-15      Sec. 6.  1.  The Fund to Provide Scholarships to Students

3-16  Enrolled in Programs to become Health Care Professionals is

3-17  hereby created in the State Treasury. The State Treasurer:

3-18      (a) Shall deposit in the Fund all money transmitted to him

3-19  pursuant to subparagraph (3) of paragraph (b) of subsection 2 of

3-20  NRS 370.260.

3-21      (b) May accept gifts, grants, bequests and donations for

3-22  deposit in the Fund.

3-23      2.  The State Treasurer shall administer the Fund. As

3-24  administrator of the Fund, the State Treasurer:

3-25      (a) Shall maintain the financial records of the Fund;

3-26      (b) Shall invest the money in the Fund as the money in other

3-27  state funds is invested;

3-28      (c) Shall manage any account associated with the Fund;

3-29      (d) Shall maintain any instruments that evidence investments

3-30  made with the money in the Fund;

3-31      (e) May contract with vendors for any good or service that is

3-32  necessary to carry out the provisions of this section; and

3-33      (f) May perform any other duties necessary to administer the

3-34  Fund.

3-35      3.  The interest and income earned on the money in the Fund

3-36  must, after deducting any applicable charges, be credited to the

3-37  Fund. All claims against the Fund must be paid as other claims

3-38  against the State are paid.

3-39      4.  Not more than 2 percent of the amount of money in the

3-40  Fund may be used to pay the costs of administering the Fund.

3-41      5.  The money in the Fund remains in the Fund and does not

3-42  revert to the State General Fund at the end of any fiscal year.

3-43      6.  Money in the Fund may be used only to provide

3-44  scholarships to students who are enrolled in a program of the

4-1  System to become a health care professional in accordance with

4-2  the provisions of section 7 of this act.

4-3  Sec. 7.  1.  The Board of Regents shall:

4-4  (a) Administer, directly or through a designated officer or

4-5  employee of the System, a program to provide scholarships to

4-6  students who are enrolled in a program of the System to become

4-7  health care professionals; and

4-8  (b) Establish a policy for the administration of such

4-9  scholarships. The policy must include, without limitation:

4-10          (1)  The criteria for eligibility for receipt of a scholarship

4-11  pursuant to this section; and

4-12          (2) The manner by which eligible students may apply for a

4-13  scholarship.

4-14      2.  Each student to whom a scholarship is provided pursuant

4-15  to this section must:

4-16      (a) Be enrolled in a program of the System to become a health

4-17  care professional;

4-18      (b) Fulfill all requirements for classification as a full-time

4-19  student showing progress towards completion of the program; and

4-20      (c) Comply with the eligibility requirements established by the

4-21  Board of Regents pursuant to subsection 1.

4-22      3.  Scholarships provided pursuant to this section must be

4-23  used only:

4-24      (a) For the payment of registration fees, laboratory fees and

4-25  laboratory expenses;

4-26      (b) To purchase required textbooks and course materials;

4-27      (c) To pay the living expenses incurred by an eligible student

4-28  while he attends a university, state college or community college

4-29  within the System; and

4-30      (d) For other costs related to the attendance of an eligible

4-31  student at a university, state college or community college within

4-32  the System.

4-33      4.  The Board of Regents shall certify to the State Treasurer:

4-34      (a) A list of students who are eligible to receive scholarships

4-35  pursuant to this section; and

4-36      (b) The amount of money each such student is entitled to

4-37  receive.

4-38  The State Treasurer shall disburse a scholarship for each semester

4-39  on behalf of an eligible student so certified directly to the

4-40  institution in which the student is enrolled, upon certification from

4-41  the institution of the number of credits for which the student is

4-42  enrolled, which must meet or exceed the minimum number of

4-43  credits required for eligibility and certification that the student is

4-44  in good standing and making satisfactory progress toward a

4-45  recognized degree or certificate, as determined by the Board of

5-1  Regents pursuant to subsection 5. The scholarship must be

5-2  administered by the institution as other similar scholarships are

5-3  administered and may be used only for the expenditures

5-4  authorized pursuant to subsection 3.

5-5  5.  The Board of Regents shall establish criteria for

5-6  determining whether a student is making satisfactory academic

5-7  progress toward a recognized degree or certificate for the purposes

5-8  of subsection 4.

5-9  Sec. 8.  The Board of Regents may adopt such regulations as

5-10  are necessary to carry out the provisions of sections 5, 6 and 7 of

5-11  this act.

5-12      Sec. 9.  NRS 439.620 is hereby amended to read as follows:

5-13      439.620  1.  The Fund for a Healthy Nevada is hereby created

5-14  in the State Treasury. The State Treasurer shall deposit in the Fund:

5-15      (a) Fifty percent of all money received by this state pursuant to

5-16  any settlement entered into by the State of Nevada and a

5-17  manufacturer of tobacco products; [and]

5-18      (b) Fifty percent of all money recovered by this state from a

5-19  judgment in a civil action against a manufacturer of tobacco

5-20  products[.] ; and

5-21      (c) All money transmitted to him pursuant to subparagraph (2)

5-22  of paragraph (b) of subsection 2 of NRS 370.260.

5-23      2.  The State Treasurer shall administer the Fund. As

5-24  administrator of the Fund, the State Treasurer:

5-25      (a) Shall maintain the financial records of the Fund;

5-26      (b) Shall invest the money in the Fund as the money in other

5-27  state funds is invested;

5-28      (c) Shall manage any account associated with the Fund;

5-29      (d) Shall maintain any instruments that evidence investments

5-30  made with the money in the Fund;

5-31      (e) May contract with vendors for any good or service that is

5-32  necessary to carry out the provisions of this section; and

5-33      (f) May perform any other duties necessary to administer the

5-34  Fund.

5-35      3.  The interest and income earned on the money in the Fund

5-36  must, after deducting any applicable charges, be credited to the

5-37  Fund. All claims against the Fund must be paid as other claims

5-38  against the State are paid.

5-39      4.  Upon receiving a request from the State Treasurer or the

5-40  Department for an allocation for administrative expenses from the

5-41  Fund pursuant to this section, the Task Force for the Fund for a

5-42  Healthy Nevada shall consider the request within 45 days after

5-43  receipt of the request. If the Task Force approves the amount

5-44  requested for allocation, the Task Force shall notify the State

5-45  Treasurer of the allocation. If the Task Force does not approve the

6-1  requested allocation within 45 days after receipt of the request, the

6-2  State Treasurer or the Department, as applicable, may submit its

6-3  request for allocation to the Interim Finance Committee. Except as

6-4  otherwise limited by this subsection, the Interim Finance Committee

6-5  may allocate all or part of the money so requested. The annual

6-6  allocation for administrative expenses from the Fund, whether

6-7  allocated by the Task Force or the Interim Finance Committee ,

6-8  must not exceed:

6-9  (a) More than 2 percent of the money in the Fund, as calculated

6-10  pursuant to this subsection, each year to pay the costs incurred by

6-11  the State Treasurer to administer the Fund; and

6-12      (b) More than 3 percent of the money in the Fund, as calculated

6-13  pursuant to this subsection, each year to pay the costs incurred by

6-14  the Department, including, without limitation, the Aging Services

6-15  Division of the Department, to carry out its duties set forth in NRS

6-16  439.625 to 439.690, inclusive.

6-17  For the purposes of this subsection, the amount of money available

6-18  for allocation to pay for the administrative costs must be calculated

6-19  at the beginning of each fiscal year based on the total amount of

6-20  money anticipated by the State Treasurer to be deposited in the Fund

6-21  during that fiscal year.

6-22      5.  The money in the Fund remains in the Fund and does not

6-23  revert to the State General Fund at the end of any fiscal year.

6-24      6.  All money that is deposited or paid into the Fund is hereby

6-25  appropriated to the Department and, except as otherwise provided in

6-26  paragraphs (c) and (d) of subsection 1 of NRS 439.630, may only be

6-27  expended pursuant to an allocation made by the Task Force for the

6-28  Fund for a Healthy Nevada. Money expended from the Fund for a

6-29  Healthy Nevada must not be used to supplant existing methods of

6-30  funding that are available to public agencies.

6-31      Sec. 10.  This act becomes effective on July 1, 2003.

 

6-32  H