HB1196 96TH GENERAL ASSEMBLY

LRB096 03641 HLH 13669 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB1196

Introduced 2/11/2009, by Rep. Karen A. Yarbrough

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.719 new
30 ILCS 105/6z-76 new
35 ILCS 143/10-10

Amends the Tobacco Products Tax Act of 1995. Increases the rate of the tax from 18% to 40% beginning on September 1, 2009. Provides that, beginning on October 15, 2009, 45% of the moneys received by the Department under the Act shall be paid into the Long-Term Care Provider Fund and 55% of the moneys received by the Department under the Act shall be paid into the Healthcare Provider Relief Fund (now, all of the moneys are paid into the Long-Term Care Provider Fund). Amends the State Finance Act to create the Healthcare Provider Relief Fund. Provides that moneys in the Fund may be used by the Department of Healthcare and Family Services only for the purpose of making reimbursements to providers of goods or services under certain medical assistance programs. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The State Finance Act is amended by adding Sections 5.719 and 6z-76 as follows:

(30 ILCS 105/5.719 new)

Sec. 5.719. The Healthcare Provider Relief Fund.

(30 ILCS 105/6z-76 new)

Sec. 6z-76. The Healthcare Provider Relief Fund. The Healthcare Provider Relief Fund is created as a special fund in the State treasury. Moneys in the Fund may be used, subject to appropriation, by the Department of Healthcare and Family Services only for the purpose of making reimbursements to providers of goods or services under the medical assistance program under Article V of the Illinois Public Aid Code, the Children's Health Insurance Program Act, the Covering All Kids Health Insurance Act, and the pharmaceutical assistance program under the Senior Citizens and Disabled Persons Property Tax Relief and Pharmaceutical Assistance Act. The Department shall make all such reimbursements from the Fund in the order that claims for those reimbursements were received by the Department.

Any interest earnings that are attributable to moneys in the Fund must be deposited into the Fund.

The Healthcare Provider Relief Fund is not subject to sweeps, administrative charges, or charge-backs, including but not limited to, those authorized under Section 8h of the State Finance Act, or any other fiscal or budgetary maneuver that would in any way transfer any funds from the Healthcare Provider Relief Fund into any other fund of the State.

Section 10. The Tobacco Products Tax Act of 1995 is amended by changing Section 10-10 as follows:

(35 ILCS 143/10-10)

Sec. 10-10. Tax imposed. On the first day of the third month after the month in which this Act becomes law and through August 31, 2009, a tax is imposed on any person engaged in business as a distributor of tobacco products, as defined in Section 10-5, at the rate of 18% of the wholesale price of tobacco products sold or otherwise disposed of to retailers or consumers located in this State. Beginning on September 1, 2009, the tax shall be imposed at the rate of 40% of the wholesale price of tobacco products sold or otherwise disposed of to retailers or consumers located in this State. The tax is in addition to all other occupation or privilege taxes imposed by the State of Illinois, by any political subdivision thereof, or by any municipal corporation. However, the tax is not imposed upon any activity in that business in interstate commerce or otherwise, to the extent to which that activity may not, under the Constitution and Statutes of the United States, be made the subject of taxation by this State. The tax is also not imposed on sales made to the United States or any entity thereof.

For returns due before October 15, 2009, all All moneys received by the Department under this Act shall be paid into the Long-Term Care Provider Fund of the State Treasury. For returns due on or after October 15, 2009, 45% of the moneys received by the Department under this Act shall be paid into the Long-Term Care Provider Fund and 55% of the moneys received by the Department under this Act shall be paid into the Healthcare Provider Relief Fund.

(Source: P.A. 92-231, eff. 8-2-01.)

Section 99. Effective date. This Act takes effect upon becoming law.