The bill amends the Tobacco Products Tax Act by updating the language regarding the distribution of tax proceeds. It specifies that the proceeds from taxes, fees, and penalties must be deposited with the state treasurer and can only be disbursed as outlined in the bill. Notably, the bill changes the wording from "shall" to "must" in several instances to emphasize the mandatory nature of these provisions. Additionally, it introduces a new allocation for the health and safety fund and modifies the distribution of funds for smoking prevention programs, ensuring that a portion of the proceeds is used to expand the free smokers quit kit program to include nicotine replacement therapies.

Furthermore, the bill revises the allocation percentages for various funds, including the Michigan Medicaid benefits trust fund and the general fund, while eliminating previous references to the Michigan State Capitol Historic Site fund. It also establishes a mechanism for adjusting the funding amounts based on the Consumer Price Index, ensuring that allocations keep pace with inflation. Overall, the bill aims to enhance the effectiveness of tobacco tax revenue in supporting health initiatives and state programs.

Statutes affected:
House Introduced Bill: 205.432