California Cancer Research Act summary

Imposes excise tax on cigarettes by $1 per pack with equivalent increase on other tobacco products.

Generates approximately $855 million in first year and declines slightly, but predictably (about 3% annually) every year thereafter.

Revenue directed as follows:

Backfills existing tobacco tax revenue streams "off the top" (approximately $ 75 million annually).  This insures that the Proposition 99, Proposition 10, General Fund and Breast Cancer programs funded by existing tobacco taxes are not negatively impacted by the tax increase.

Remaining funds directed as follows (language in italics represents actual text):

60% Research of cancer and tobacco related disease (approximately $ 468 million annually)

"for the purpose of grants and loans to support research into the prevention, early detection, treatments, complementary treatments and potential cures of lung cancer and other types of cancer, cardiovascular disease, emphysema and other tobacco related diseases, including but not limited to coronary heart disease, and chronic obstructive lung disease"

Grants and loans "shall be awarded on the basis of scientific merit as determined by an open, competitive peer review process that assures objectivity, consistency and high quality. All qualified investigators, regardless of institutional affiliation, shall have equal access and opportunity to compete for the funds in this Act. The peer review process for the selection of grants awarded under this program shall be modeled on the process used by the National Institutes of Health in its grant-making process"

15% Facilities and capital equipment for research (approximately $ 117 million annually)

"for the purposes of grants and loans to provide facilities, including but not limited to those building, building leases and capital equipment as my be found necessary and appropriate by the Committee, to further biomedical ,epidemiological, behavioral, health services, and other research whose primary focus is to identify and refine promising prevention, early detection, treatments, complementary treatments, rehabilitation and potential cures of lung cancer an other types of cancer, cardiovascular disease, emphysema and other tobacco related diseases"

20% Tobacco prevention and cessation (approximately $ 156 million annually)

to the state’s existing tobacco control program. These funds would be divided between the California Department of Public Health (80%) and the California Department of Education (20%) for their existing programs to prevent and reduce the use of tobacco.

3% anti-tobacco law enforcement (approximately $ 23 million annually)

"to support law enforcement efforts to reduce cigarette smuggling, tobacco tax evasion, and counterfeit tobacco products, to reduce illegal sales of tobacco products to minors, and to enforce legal settlement provisions and conduct law enforcement training and technical assistance activities for tobacco related statues"

These funds would be divided among the State Board of Equalization (40%) the State Department of Public Health (40%) and the Attorney General (20%).

no more than 2% administration (approximately $ 16 million annually)

Oversight provided by 9 member governing committee

The oversight committee would be comprised of:

3 University of California chancellors (Berkeley, San Francisco and Santa Cruz)

3 "selected from among Cancer Center Directors of National Cancer Institute designated cancer centers located within the State of California" (appointed by the Governor)

1 "affiliated with a California Academic Medical Center who is a practicing physician with expertise in the prevention, treatment or research of cardiovascular disease" (appointed by the Governor)

2 "selected from among California representatives of California or national disease advocacy groups whose focus is tobacco-related illness, at least one of whom shall be a person who has been treated for a tobacco related illness."  (appointed by Director of California Department of Public Health)

Committee to establish a peer review process for selection of grants modeled on the process used by the National Institutes of Health.