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Lolo signs three admin bills into law — Cigarette tax, elderly/ disabled abuse act, and consumer protection

American Samoa Executive Office Building
fili@samoanews.com

Pago Pago, AMERICAN SAMOA — Gov. Lolo Matalasi Moliga has signed into law three Administration bills, approved by the Fono, which includes legislation that increases the cigarette and tobacco excise tax and provides additional revenues to help the American Samoa Community College.

In accordance with the local Constitution, all three legislations become effective 60 days after the end of the legislative session in which it is passed. The bills were approved last month during the 4th Regular Session of the 35th Legislature, which officially closed on Oct. 4th.

CIGARETTE TAX

Currently, the tax is 30¢ per cigarette or cigar, and each 10 grams of smoking tobacco. Current law also states that 50% of all revenues collected goes to the repayment of the American Samoa Economic Development Authority (ASEDA) bonds and the balance goes to the general fund.

The Administration sought to hike the import tax by three cents; and of the revenue collected from the excise tax: 50% will go to the bond repayment; 9% to ASCC; and 41% to the general fund.

Prior to the closure of the last legislative session on Oct. 4th the Fono reached a compromise to amend the final language to reflect the following: 11% to ASCC; 39% to the general fund; and 50% for bond repayment.

In signing the bill into law, the governor in an Oct. 17th letter - which is also when he signed it into law - informed Fono leaders that this tax is necessary to compensate for the social costs of tobacco use in American Samoa.

“This Administration recognizes the financial difficulties of the American Samoa Community College and collections from this bill will provide secure, earmarked funding for ASCC,” Lolo wrote. “This means more opportunities for our youth to receive quality education at a reasonable cost.”

At a recent cabinet meeting, ASCC President Dr. Rosevonne Makaiwi Pato thanked the governor for submitting this bill to the Fono.

During the ASCC fiscal year 2019 budget hearings early last month, Pato, shared with lawmakers the financial challenges faced by the college, and recommended possible funding sources for a steady ASG subsidy. (See Samoa News Sept. 12th edition for details).

The new tax is expected to further hike the price of a cigarette pack - which currently varies between $8.75 to about $12 for popular brands like Kool and Benson, depending on the location of the store on island.

ELDERLY & DISABLED ADULT NEGLECT, ABUSE LAW

American Samoa will soon have in place a new law which criminalizes and prevents the neglect, abuse and exploitation of the elderly and disabled adult population in the territory.

This is because Gov. Lolo Matalasi Moliga signed into law on Oct. 17th an Administration bill, which was approved by the Fono last month: “Elderly and Disabled Adult Neglect, Abuse and Exploitation Prevention Act”.

“The neglect, abuse and exploitation of the elderly and disabled adults is a growing problem wherein the vast majority of incidents go unreported,” Lolo wrote to Fono leaders.

“Our most vulnerable deserve our utmost protection,” he pointed out. “As we work on improving other social programs affecting these groups, this Act will help prevent their neglect, abuse and exploitation by prohibiting specific actions they are targeted with.”

BUREAU OF CONSUMER PROTECTION AMENDMENTS

Also signed into law on Oct 17th by the governor, is another Administration bill, which expands the powers of the director of the Bureau of Consumer Protection, an agency within the Department of Legal Affairs, headed by the Attorney General.

“Our consumers deserve reasonable laws that help protect them from unfair and deceptive business practices,” Lolo wrote to Fono leaders in signing the bill into law.

According to the governor, this Act “improves on outdated laws” by: expanding the enforcement powers of the Attorney General and the Consumer Protection Bureau director; providing appropriate causes of action; and allowing for a wider range of legal remedies for consumers.

Durning a Senate committee hearing last month, Attorney General Talauega Eleasalo Ale, who supports the measure, explained that the proposed law is to further protect consumers in their dealings with businesses. He said there are still consumers — especially those from low-income families — complaining about unfair business dealings by local vendors.

He added that there are a lot of complaints that have reached his office pertaining to insurance companies and car repair shops. For example, the consumer takes their car in for repairs but afterwards, the owner finds that the car battery is missing. Another example, he said, is when a car is taken in for a tire repair and afterwards, the owner discovers that other parts of the car are missing.

Over the past several weeks, Samoa News has received concerns from consumers about stores that label products with one price — especially canned food products — but when the item is scanned at the cash register, it is much higher.

The consumers who shared their stories with Samoa News are from low income families and they “didn’t want to cause trouble” by complaining to the store clerks. However, a member of one family says there should be some sort of law to protect consumers from these types  “gaoi (or stealing)” practices.