The Louisiana House Ways and Means Committee passed Karen Carter Peterson’s HB 889 (or the Louisiana Healthier Families Act) favorably.  Weeks ago, the same legislation, without amendments that were adopted on Monday, failed.  Governor Bobby Jindal and the Louisiana Republican Party have opposed the legislation and did so today. 

Cynthia Bridges, the Secretary of Revenue spoke for Governor Jindal and repeated the well-used refrain that the Governor was against taxes, therefore opposed the legislation.

Proponents of the legislation were health agencies, the Association of the United Way, officials from the Catholic Church, and numerous other agencies and organizations.  Opponents of the legislation were generally a few retailers and the tobacco industry and an organization of smokers.

The bill will now be voted on the House floor.  The Amendments will specify how the money raised will be used and give an accounting annually.  One amendment which passed (by Rep. Denehey) specified which organizations and education institutions would receive the funds.

There was testimony that 22 percent of Louisiana citizens smoke and 78 percent do not smoke.  However, Rep. Peterson said that the average citizen in Louisiana spends above six hundred dollars per year in health related costs related to smoking.

The tax would increase the cost of a pack of cigarettes by fifty cents and the revenues would be specifically targeted with accounting by the legislature.  The overall purpose of the legislation was to educate the public on smoking, to help create incentives to not smoke and to enhance research on smoking-related conditions.

Below is a statement by Karen Carter Peterson after passing of the legislation.  Also below is an email from the Louisiana Republican Party prior to the vote which went out to its mailing list:

Statement by Rep. Karen Carter Peterson about House Ways & Means Committee Vote on HB889 
June 8, 2009
BATON ROUGE – “Today, I presented House Bill 889 to the House Ways & Means Committee in another effort to offer a responsible, viable solution to Louisiana’s health care and fiscal problems.  With only three weeks left to find a solution to a crisis that will cut funding for health care and higher education, HB 889 accomplishes our goals of discouraging tobacco use among youth, encouraging tobacco cessation among users while also funding critical health care programs. 
     "The good news is that today, my colleagues saw the value in these efforts and in this important bill and they voted to give HB889 the hearing it deserves in the full House of Representatives.
     "In other words, they chose to stand with the 71 percent of Louisiana residents who support an increase in the tobacco tax and they took an important step toward securing a better future for our state. I would like to thank them for this and applaud them for their dedication to doing the right thing for all Louisiana residents.
     “Tobacco usage is the top preventable cause of death in Louisiana and is responsible for $1.5 billion in health care costs, $1.9 billion in lost worker productivity and $663 million in Medicaid costs annually.  The additional revenue generated by a 50 cent tobacco tax increase will help reduce Louisiana’s youth smoking rate by more than 8 percent and save approximately 11,300 Louisiana smokers from an early death due to tobacco use.
     "New revenue from a tobacco tax increase will be invested in programs to expand coverage and provide better care to the most vulnerable in our state. The long-term cost savings to our state – the result of better health outcomes and a decrease in chronic diseases – will ensure healthier communities and a healthier Louisiana.
     “In the end, passing HB 889 simply makes good public health and fiscal sense and it can help bring us closer to the kind of accountable and efficient government we all want and deserve in Louisiana.” 

Louisiana Republican Party