Rates

The following rates shall apply in computing, assessing, and collecting the tobacco tax:

(a)Cigarettes. A tax at the rate of Twenty Dollars ($20.00) per one hundred

(100)cigarettes to be prorated in accordance with the number of cigarettes contained in the individual package taxed.

(b)Cigars. The tax rates for cigars shall be based on the following sizes:

(1)Mini Cigars: Fifty-three Cents ($0.53) Per Cigar. Mini Cigars are defined as cigars with a ring size of forty

(40)or less, or a length of less than four and one-half inches (4.5”), regardless of ring size as specified by the manufacturer’s label.

(2)Standard Cigars: Fifty-eight Cents ($0.58) Per Cigar. Standard Cigars are defined as cigars with a ring size of more than forty (40), but less than sixty-four

(64)as specified by the manufacturer’s label.

(3)Large Cigars: Sixty-six Cents ($0.66) Per Cigar. Large Cigars are defined as cigars with a ring size of more than sixty-four (64), or a length of more than eight inches (8”), regardless of the ring size as specified by the manufacturer’s label.

(4)Where no ring size or length is specified by the manufacturer’s label, the tax shall be Fifty-eight Cents ($0.58) per cigar. For purposes of this Section, ring size shall be defined as the usually accepted measure used by cigar manufacturers for determining the diameter of cigar at its widest point. A ring size of one

(1)is equal to one sixty-fourth (1/64) of an inch.

(c)Other Tobacco Products. A tax at the rate of Fifty-three Dollars ($53.00) per pound for all other tobacco products to be prorated in accordance with the size of the package to be taxed.

(d)Creation of the Healthy Futures Fund. There is hereby created the Healthy Futures Fund

(Fund)which shall be maintained separate and apart from other funds of the government of Guam and shall be kept in a separate bank account and shall not be subject to any transfer authority of I Maga’hågan/Maga’låhen Guåhan.

(1)The sum of One Million Dollars ($1,000,000) of the taxes collected pursuant to this Section shall be allocated and is appropriated, and shall continue to be deemed appropriated annually to the Guam Memorial Hospital Authority for the sole and specific purpose of funding for the line of credit pursuant to 10 GCA § 80109(s). CH. 26 BUSINESS PRIVILEGE TAX LAW

(2)The annual allocation of One Million Dollars ($1,000,000), as appropriated pursuant to this Subsection (d), shall continue and shall remain in full force and effect until specifically revoked or amended pursuant to law.

(3)As taxes are received and deposited into the Fund, at least one-twelfth (1/12) of One Million Dollars ($1,000,000) shall subsequently be transferred monthly to the Guam Memorial Hospital Authority, the total amount not to exceed One Million Dollars ($1,000,000) per fiscal year.

(4)The Guam Memorial Hospital Authority shall establish a bank account separate and apart from all other bank accounts of GMHA and the government of Guam, and shall deposit all funds allocated and appropriated pursuant to this Subsection into the account, and from which such funds shall only be drawn upon for the sole and specific purpose of funding for the line of credit pursuant to § 80104 (t), Chapter 80, Division 4, 10 Guam Code Annotated.

(5)All other proceeds from taxes collected under this Section shall be deposited into the Fund and shall not be commingled with the General Fund. The balance of the Fund is subject to the following:

(A)Seventy-two percent (72%) of the taxes collected shall be subject to I Liheslaturan Guåhan’s appropriation for the following purposes:

(i)health, education, public safety and social programs providing awareness on tobacco and alcohol and substance abuse prevention, cessation, treatment and control; programs and activities for improving overall health and well-being; and, programs that enforce alcohol regulations;

(ii)public safety and social programs that enforce alcohol and substance abuse regulations, reduce underage drinking, support traffic safety, reduce drug-related violence and abuse;

(iii)community-based drug and substance abuse prevention programs;

(iv)matters pertinent to the items, supra, as deemed appropriate by I Liheslaturan Guåhan, with preference given to programs directed towards youth, low-income or atrisk persons and families; drug, alcohol, tobacco [and] substance prevention, cessation, and treatment; preventative health care, and chronic disease management; and the construction and maintenance of facilities to provide a venue to promote a healthy lifestyle;

(v)to the Department of Public Health and Social Services for health promotion and disease prevention programs that attempt to reduce resources spent on treating preventable illness and functional impairment, enhance the quality of life, and/or reduce disparities in the health status of populations; and

(vi)to the Guam Behavioral Health and Wellness Center for tobacco prevention and cessation programs that attempt to reduce tobacco consumption;

(vii)to support educational training, cultural enhancement and sports opportunities, and identify drug-free adult and youth leaders who will mentor other adolescents to live alcohol, tobacco, and drug-free lifestyles.

(B)Fifteen percent (15%), or the sum of Four Million Dollars ($4,000,000), whichever is higher, of the taxes collected and any subsequent gains shall be transferred into the Guam CH. 26 BUSINESS PRIVILEGE TAX LAW Cancer Trust Fund for programs supporting cancer screening, treatment, support services, cancer education, and outreach programs;

(C)Twelve percent (12%) of the taxes collected to Guam Memorial Hospital Authority for operating expenses; and

(D)One percent (1%) of the taxes collected shall be used to maintain the Guam Cancer Registry.

(e)Creation of the Guam Cancer Trust Fund.

(1)There is hereby created the Guam Cancer Trust Fund, which shall be used to provide financial assistance to organizations that provide patient directed services for the prevention of cancers, its treatment, diagnosis, and other services that may be required to access treatment, including, but not limited to, off-island transportation and temporary housing.

(2)The Guam Cancer Trust Fund shall be subject to the following:

(A)Fifteen percent (15%) of the Healthy Futures Fund into the Guam Cancer Trust Fund, which shall be held in an account at a Guam financial institution separate and apart from all other accounts and funds of the government of Guam and shall not be subject to the transfer authority of I Maga’hågan/Maga’låhen Guåhan.

(B)The University of Guam, for each fiscal year, may allocate up to seventy-five percent (75%) of the Guam Cancer Trust Fund’s balance to non-profit and charitable organizations providing cancer screenings, treatment, support services, cancer education, and outreach programs; provided, however, no more than ten percent (10%) of the available funds shall be utilized for cancer education and outreach programs.

(3)The University of Guam shall promulgate rules and regulations pursuant to 5 GCA Chapter 9 regarding the administration of the Guam Cancer Trust Fund, as well as the application, distribution, review and investigation of such funds.

(A)Such rules and regulations shall be posted on the University’s website.

(B)The initial rules and regulations governing the Guam Cancer Trust Fund shall be submitted to I Liheslatura within ninety

(90)days from the effective date of this Act.

(4)The Guam Cancer Trust Fund may receive additional appropriations, contributions, endowments, or gifts in cash or otherwise from any source, including Guam, corporations or other businesses, individuals, and interested parties.

(5)The aggregate principal sum deposited in the Guam Cancer Trust Fund shall be invested by the University of Guam, subject to its investment policy as established by the Board of Regents.

(6)No authorization for the withdrawal or transfer of cash or funds shall be made from the Guam Cancer Trust Fund account created pursuant to § 26603(e)(2)(A) for purposes other than those enumerated in § 26603(e)(2)(B) and § 26603(e)(5), and not in accordance with the rules and regulations governing the Guam Cancer Trust Fund. Any person in violation of this Subsection shall be guilty of a misdemeanor.

(7)If the Guam Cancer Trust Fund is terminated, the monies remaining in the Trust Fund shall revert to the Healthy Futures Fund. CH. 26 BUSINESS PRIVILEGE TAX LAW

(8)The President of the University of Guam shall submit a report on a quarterly basis to the Speaker of I Liheslaturan Guåhan of the revenues collected, gained, and expended from the Guam Cancer Trust Fund, the balance sheet or equivalent thereof, and monthly bank statements and bank reconciliations (if any) over the three

(3)months of each quarter; and, shall post such reports on the University’s website.