Sec. 1. 36 MRSA §4366-E is enacted to read:

§4366-E.__Additional cigarette tax for health care safety net

programs

1.__Additional tax imposed.__Beginning October 1, 2003, in addition to the tax imposed under sections 4365 and 4366-D, a tax is imposed of 2.5 mills for each cigarette imported into this State or held for sale in this State by any person.__The tax imposed under this section must be added to the tax imposed under sections 4365 and 4366-D and collected and administered in the same manner as the tax under those sections.

2.__Transition.__The State Tax Assessor shall adopt rules to ensure that cigarettes sold or held for resale, including sales through vending machines, on October 1, 2003 are stamped at the combined tax rate applicable under sections 4365 and 4366-D and this section.__The rules must specify a due date for payment of tax due under this subsection.__Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.

Sec. 2. Appropriations and allocations. The following appropriations and allocations are made.

HUMAN SERVICES, DEPARTMENT OF

Bureau of Health 0143

Initiative: Provides fund for grants to federally qualified health centers to meet the need of providing primary health care to the uninsured and underinsured persons whose income is below 200% of the federal poverty level at eligible sites.

General Fund 2003-04 2004-05

All Other $2,800,000 $3,250,000

__________ __________

General Fund Total $2,800,000 $3,250,000

Bureau of Health 0143

Initiative: Provides fund for assistance grants to eligible federally qualified health centers and Indian Health Service- supported centers for the establishment and growth of federally authorized drug pricing programs under United States Public Law 102-585, Section 340B.

General Fund 2003-04 2004-05