Rulemaking for the California Healthcare, Research and Prevention Tobacco Tax Act of 2016

On November 8, 2016, California voters approved the Proposition 56 initiative, the California Healthcare, Research and Prevention Tobacco Tax Act of 2016 (the "Act"). The Act increased the tobacco tax and requires revenues generated by the Act to be used for a variety of state and local programs. Additionally, the Act contains provisions that do the following:

  • Require the State Auditor to define administrative costs for purposes of the Act.
  • Require the State Auditor, when defining administrative costs, to take into account the differing nature of the agencies or departments receiving funds pursuant to the Act.
  • Require the State Auditor to conduct at least biennially an independent financial audit of the state and local agencies receiving funds pursuant to the Act; review (at a minimum) the administrative costs expended by the state agencies that administer the fund; provide public transparency with respect to revenues generated by the Act; ensure that revenues generated by the Act are used for healthcare, tobacco use prevention, and research; and make recommendations for improvements.

The State Auditor has embarked on a rulemaking process, has submitted the following documents to the Office of Administrative Law, and is giving notice of the following proposed regulatory action:

  • Notice of Proposed Rulemaking (pdf) (html)
  • Initial Statement of Reasons (pdf) (html)
  • Proposed Text of Regulations (pdf) (html)

Get involved! Our office is accepting public comments on the proposed regulations until August 21, 2017. You can submit your comments either by emailing us at regulations@auditor.ca.gov or by mail, or fax at the following address:

Brianna Carlson, Legal Support Specialist
California State Auditor's Office
Office of Legal Services
621 Capitol Mall, Suite 1200
Sacramento, CA 95814
Fax: (916)323-0913

In addition, a public hearing has been scheduled for August 21, 2017. The hearing will be held at the California State Auditor's Office located at 621 Capitol Mall, 10th Floor, Sacramento, California, beginning at 10 a.m. and ending at 2 p.m.

Also, if you would like to be added to our list of interested persons and receive email notifications throughout the process, let us know by emailing us at regulations@auditor.ca.gov

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