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.

On July 7, 2017, the State Auditor embarked on a rulemaking process, submitted the following documents to the Office of Administrative Law, and gave 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)

On September 12, 2017, the State Auditor provided notice of changes made to proposed regulation sections 61201, 61212, 61213, 61214, 61215, and 61216 of Title 2 of the California Code of Regulations which was the subject to a 45-day comment period:

  • Notice of Modifications to Text of Proposed Regulations (pdf) (html)
  • Text of Modified Proposed Regulations (pdf) (html)
  • Notice of Addition of Documents and Information to Rulemaking File (pdf) (html)

On October 16, 2017, the State Auditor provided a second notice of changes to proposed regulation section 61215 of Title 2 of the California Code of Regulations in response to written comments regarding proposed regulations received during the first 15-day comment period:

  • Second Notice of Modifications to Text of Proposed Regulations (pdf) (html)
  • Second Text of Modified Proposed Regulations (pdf) (html)
  • Second Notice of Addition of Documents and Information to Rulemaking File (pdf) (html)

Get involved! Our office is accepting public comments on the modified regulations between October 16, 2017 and October 31, 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 Behnoud, Legal Support Specialist
California State Auditor's Office
Office of Legal Services
621 Capitol Mall, Suite 1200
Sacramento, CA 95814
Fax: (916)323-0913

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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