House favors plan for UAMS cancer designation

The Arkansas House on Thursday voted for a proposal to raise about $10.5 million from new tobacco and medical marijuana tax revenue to help the state’s medical school attain National Cancer Institute designation.

House Bill 1565 by Rep. Andy Davis, R-Little Rock, would raise money to help the University of Arkansas for Medical Sciences’ Winthrop P. Rockefeller Cancer Institute establish and maintain recognition from the National Cancer Institute by dedicating receipts from the sales and special privilege taxes on medical marijuana; increasing the required mark-up on cigarettes; and levying an additional 50-cent tax on packs of cigarette papers.

The bill also would incrementally increase the minimum tobacco-buying age from 18 to 21 by 2021.

“NCI designation will generate millions of dollars in economic activity and benefit for the state,” Davis said. “But more importantly, this will allow Arkansas cancer patients across the state to receive the treatments they need — and that are currently not available in the state of Arkansas — to get those treatments closer to home saving them countless hours and dollars, and potentially making the difference they need to live.”

Lawmakers earlier in this session passed a law that created the UAMS National Cancer Institute Designation Trust Fund to hold private and public dollars raised for the efforts, and UAMS has begun fundraising privately with the goal of raising about $30 million toward the designation.

Annual funding from the taxes proposed by Davis’ bill would help maintain the designation.

The UAMS chancellor, Dr. Cam Patterson, told lawmakers this week that National Cancer Institute recognition would open access to drugs and clinical trials that are not now available in Arkansas.

“A good vote on this is a bad day for cancer in Arkansas,” he said.

There are 70 National Cancer Institute-designated facilities in 36 states, but none is in Arkansas.

Rep. Michelle Gray, R-Melbourne, spoke in support of the bill, saying it would have an economic impact on the state of about $70 million and bring about 1,500 jobs.

“It’s not just this one little funding piece,” Gray said. “This one little funding piece has a huge economic impact on the state of Arkansas, not to mention the health and well being of our constituents.”

No one spoke against the bill Thursday, but representatives from the American Cancer Society, American Lung Society and American Heart Association opposed the bill on Wednesday in committee.

HB1565 would preclude city and county governments from regulating tobacco more strictly than the state. Opponents said that localities are best positioned to regulate their own communities.

The legislation also would decrease the tax rate on “modified risk tobacco products,” which are being studied by the U.S. Food and Drug Administration. Depending on the FDA’s determination and the popularity of those products if introduced, it could create a revenue loss for the state. Davis told the House Rules committee that tweaks could be made at a later time.

Davis said he included language in the bill preempting regulation by cities and counties to keep regulation uniform across the state and minimize the burden on state regulators. He also said in an interview that he wanted to minimize opposition from tobacco retailers to ensure the bill maintained enough support to pass.

There was also some disagreement about whether to phase in the tobacco-buying age increase or raise it to 21 immediately. Davis said it was a “fairness issue” to those 18through 20-year-olds who have already begun smoking.

Rep. Lee Johnson, R-Greenwood, passed a bill through the House Rules Committee last week that would’ve immediately raised the tobacco-buying age, but it hasn’t received a vote on the House floor. He said Wednesday that he still plans to push for a vote on his legislation at some point. Johnson spoke in support of Davis’ legislation on Thursday.

Gov. Asa Hutchinson in a Wednesday interview said he supported HB1565. The bill now moves to the Senate for consideration.