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The Statesman Journal: article written by Peter Wong -

Cigarette-tax increase may be left up to voters: House or senate could put measure on a special Nov. 6 ballot

The stage is set for both chambers of the Oregon Legislature to refer higher tobacco taxes to voters.

The House gets its second chance Monday, when House Bill 2967 comes up.

Like an initial attempt April 26, it would raise the state tax on a pack of cigarettes from $1.18 to $2.02 and use most of the money to expand health insurance coverage to an estimated 120,000 children without it. The expansion is a little less than Gov. Ted Kulongoski proposed originally, and some of the money would go to state grants for community and rural health clinics.

Like that April 26 attempt, it will require 36 of the 60 members to pass it.

Unlike the April 26 attempt, which mustered 32 votes -- all 31 Democrats, but just one Republican -- House Bill 2967 would refer the tax to voters in a special election that is likely to be Nov. 6.

The Senate gets its chance if the second House attempt fails.

The Senate Finance and Revenue Committee approved two measures on a 3-2 vote Friday.

Senate Joint Resolution 4 also would refer the higher tax to voters, and trigger the provisions in Senate Bill 3, which is similar to the House bill in its distribution of the proceeds.

The real difference is that as a proposed constitutional change, the Senate resolution requires only simple majorities in both chambers to go onto a statewide ballot.

"One way or another, this Legislature ought to make it possible for children to get health care," said Laura Etherton, a consumer advocate for the Oregon State Public Interest Research Group.

Committee chairman Ryan Deckert, D-Beaverton, said the Senate measures will not proceed if the House bill passes.

The committee vote Friday was along party lines.

"The fact that we're contemplating putting a cigarette tax in the Constitution blows my mind," said Sen. Bruce Starr, R-Hillsboro, who may offer a substitute proposal.

Sen. Ginny Burdick, D-Portland, agreed, but still voted for the measures.

"I would encourage my colleague to get people on his side of the aisle to do this the right way," she said.

The committee also argued the merits of increasing tobacco taxes, which deter some people from smoking and prompt others to quit, to pay for children's health coverage and other programs.

"I think it's irresponsible for us as a state to move forward on a program we know we cannot sustain," said Sen. Gary George, R-Newberg.

"I think that anything we can do to discourage smoking and encourage people to raise healthy kids is a positive thing," said Sen. Rod Monroe, D-Portland.

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