A. Smoking remains the number one preventable cause of death in Oklahoma, killing more people than AIDS, alcohol, car accidents, illegal drugs, murders and suicides combined. Eighty-eight thousand Oklahoma children alive today will die prematurely of smoking-related illnesses. Increasing the price point of cigarettes is the single most effective strategy to reduce cigarette consumption by deterring children and adolescents from taking up smoking, by reducing the overall consumption of cigarettes by an estimated 26,000,000 cigarette packs in the first year, by reducing the prevalence of adult smoking by an estimated five percent (5%), by preventing an estimated 28,000 kids today from becoming adult smokers, and by reducing health-related disparities among income groups over time. For the reasons stated and in furtherance of the stated purpose of this act, there shall be assessed by the Oklahoma Tax Commission a smoking cessation fee on cigarettes, to be remitted by every wholesaler, as provided in subsection B of this section.

B. The fee provided in this subsection shall be One Dollar and fifty cents ($1.50) per twenty (20) cigarette package, and a proportionate rate on fractions thereof.

C. Beginning on the effective date of this act, and all subsequent years, the smoking cessation fee provided by this section shall be apportioned by the Oklahoma Tax Commission and transmitted to the State Treasurer, who shall deposit the same in the State Treasury to the credit of the following funds in the following percentages:

a.One Million Dollars ($1,000,000.00) to the ABLE Commission Revolving Fund created in Section 567 of Title 37 of the Oklahoma Statutes for the purpose of enhanced enforcement of the provisions of Section 600.13 of Title 37 of the Oklahoma Statutes, and

b.all amounts in excess of One Million Dollars ($1,000,000.00) to the credit of the Health Care Enhancement Fund created in Section 8 of this act.

D. For purposes of this section "cigarette" and "wholesaler" shall have the same meaning as in Section 301 of Title 68 of the Oklahoma Statutes.

E. The Oklahoma Tax Commission shall promulgate rules as needed to implement the provisions of this section.

Added by Laws 2017, c. 369, § 7.