Full Text of HB0397 98th General Assembly
HB0397ham001 98TH GENERAL ASSEMBLY | Rep. Robyn Gabel Filed: 5/21/2014
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| 1 | | AMENDMENT TO HOUSE BILL 397
| 2 | | AMENDMENT NO. ______. Amend House Bill 397 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Healthy Eating, Active Living (HEAL) Act. | 6 | | Section 5. Findings and purpose. The General Assembly finds | 7 | | that: | 8 | | Over the past 30 years, the obesity rate in the United | 9 | | States has substantially increased. The prevalence of adult | 10 | | obesity has more than doubled during that time. According to | 11 | | statistics compiled by the Centers for Disease Control, nearly | 12 | | 28% of Illinois' adult residents in 2012 were considered obese | 13 | | (body mass index (BMI) of 30 and above) and the rate was even | 14 | | higher among African American (40.5%) and Hispanic (31.2%) | 15 | | residents. | 16 | | For children, the increase in obesity has been even more |
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| 1 | | dramatic, with the obesity rate among children ages 6-11 more | 2 | | than quadrupling over the last four decades. The State of | 3 | | Illinois is not immune to the problem. 21% of Illinois children | 4 | | (age 0-17 years) are obese, the fourth worst rate in the | 5 | | nation.
| 6 | | Obese children are at least twice as likely as non-obese | 7 | | children to become obese adults. Research indicates that the | 8 | | likelihood of an obese child becoming an obese adult increases | 9 | | with age; adolescents who are obese have a greater likelihood | 10 | | of being obese in adulthood, as compared to younger children.
| 11 | | The obesity epidemic has led to a dramatic increase in | 12 | | obesity-related health conditions, such as type 2 diabetes, | 13 | | asthma, and heart disease. These health conditions costs the | 14 | | nation billions of dollars in health care costs and lost | 15 | | productivity. Obesity and weight-related health conditions | 16 | | account for $147 billion in health care costs nationally, or 9 | 17 | | percent of all medical spending, per year. Obesity-related | 18 | | annual medical expenditures in the State of Illinois are | 19 | | estimated at $3.4 billion in 2003 dollars. Almost 60% of these | 20 | | costs are paid by public funds through Medicare and Medicaid.
| 21 | | Numerous studies have established a link between obesity | 22 | | and consumption of sugar-sweetened beverages such as soft | 23 | | drinks, energy drinks, sweet teas and sports drinks. One | 24 | | meta-analysis of eight studies examining the role of | 25 | | sugar-sweetened beverage consumption on health found that | 26 | | consumption was significantly associated with type 2 diabetes |
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| 1 | | based on over 15,000 reported cases of this condition. Some | 2 | | studies have shown increased risk for heart disease independent | 3 | | of weight status, suggesting that sugar-sweetened beverages | 4 | | are unhealthy even for people who otherwise maintain a normal | 5 | | weight.
| 6 | | Sugar-sweetened beverages are the number one source of | 7 | | added sugar in the American diet (46% of added sugars). A study | 8 | | of a five-year period between 1999 and 2004 showed that | 9 | | children and adolescents consumed 10-15% of their daily caloric | 10 | | intake from sugar-sweetened beverages, which offer little or no | 11 | | nutritional value and massive quantities of added sugars. For | 12 | | example, a single 12-ounce can of soda contains the equivalent | 13 | | of approximately 10 teaspoons of sugar; the American Heart | 14 | | Association recommends that women consume no more than 6 | 15 | | teaspoons of added sugar per day, men consume no more than 9 | 16 | | teaspoons of added sugar per day, and children consume no more | 17 | | than 4 teaspoons of added sugar a day.
| 18 | | A study found that a penny-per-ounce excise tax on | 19 | | sugar-sweetened beverages in Illinois would result in a 23.5% | 20 | | reduction in sugar-sweetened beverage consumption, 185,127 | 21 | | fewer obese Illinoisans, a 9.3% reduction in youth obesity, a | 22 | | 5.2% reduction in adult obesity, 3,442 fewer incidences of | 23 | | diabetes, and a $150.8 million reduction in obesity-related | 24 | | healthcare costs.
| 25 | | It is the intent of the Legislature, by adopting this Act, | 26 | | creating the Illinois Wellness Fund, and providing targeted |
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| 1 | | prevention and additional health care funding to Medicaid, to | 2 | | diminish the human and economic costs of obesity in the State | 3 | | of Illinois. This Act is intended to discourage excessive | 4 | | consumption of sugar-sweetened beverages by increasing the | 5 | | price of these products and to create a dedicated revenue | 6 | | source for programs designed to prevent and treat obesity and | 7 | | for the State Medicaid program to reduce the burden of related | 8 | | health conditions.
| 9 | | Section 10. Definitions. For purposes of this Act: | 10 | | "Advisory Board" means the Board established under Section | 11 | | 75. | 12 | | "Bottle" means any closed or sealed container regardless of | 13 | | size or shape, including, without limitation, those made of | 14 | | glass, metal, paper, plastic, or any other material or | 15 | | combination of materials. | 16 | | "Bottled sugar-sweetened beverage" means any | 17 | | sugar-sweetened beverage contained in a bottle that is ready | 18 | | for consumption without further processing such as, without | 19 | | limitation, dilution or carbonation. | 20 | | "Caloric sweetener" means any caloric substance suitable | 21 | | for human consumption that humans perceive as sweet and | 22 | | includes, without limitation, sucrose, fructose, glucose, | 23 | | fruit juice concentrate, or other sugars. "Caloric sweetener" | 24 | | excludes non-caloric sweeteners. For purposes of this | 25 | | definition, "caloric" means a substance which adds calories to |
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| 1 | | the diet of a person who consumes that substance. | 2 | | "Consumer" means a person who purchases a sugar-sweetened | 3 | | beverage for consumption and not for sale to another. | 4 | | "Council" means the Council of State Agencies established | 5 | | under Section 70. | 6 | | "Department" means the Department of Revenue. | 7 | | "Distributor" means any person, including manufacturers | 8 | | and wholesale dealers, who receives, stores, manufactures, | 9 | | bottles, or distributes bottled sugar-sweetened beverages, | 10 | | syrup, or powders, for sale to retailers doing business in the | 11 | | State, whether or not that person also sells such products to | 12 | | consumers. | 13 | | "Fund" means the Illinois Wellness Fund established | 14 | | pursuant to Section 60. | 15 | | "Non-caloric sweetener" means any non-caloric substance | 16 | | suitable for human consumption that humans perceive as sweet | 17 | | and includes, without limitation, aspartame, saccharin, | 18 | | stevia, and sucralose. "Non-caloric sweetener" excludes | 19 | | caloric sweeteners. For purposes of this definition, | 20 | | "non-caloric" means a substance that contains fewer than 5 | 21 | | calories per serving. | 22 | | "Person" means any natural person, partnership, | 23 | | cooperative association, limited liability company, | 24 | | corporation, personal representative, receiver, trustee, | 25 | | assignee, or any other legal entity. | 26 | | "Place of business" means any place where sugar-sweetened |
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| 1 | | beverages, syrups, or powders are manufactured or received for | 2 | | sale in the state. | 3 | | "Powders" means any solid mixture of ingredients used in | 4 | | making, mixing, or compounding sugar-sweetened beverages by | 5 | | mixing the powder with any one or more other ingredients, | 6 | | including without limitation water, ice, syrup, simple syrup, | 7 | | fruits, vegetables, fruit juice, vegetable juice, carbonation | 8 | | or other gas. | 9 | | "Retailer" means any person who sells or otherwise | 10 | | dispenses in the State a sugar-sweetened beverage to a consumer | 11 | | whether or not that person is also a distributor as defined in | 12 | | this Section. | 13 | | "Sale" means the transfer of title or possession for | 14 | | valuable consideration regardless of the manner by which the | 15 | | transfer is completed. | 16 | | "State" means the State of Illinois. | 17 | | "Sugar-sweetened beverage" means any nonalcoholic | 18 | | beverage, carbonated
or noncarbonated, which is intended for | 19 | | human consumption and contains any added caloric sweetener. As | 20 | | used in this definition, "nonalcoholic beverage" means any | 21 | | beverage that contains less than one-half of one percent | 22 | | alcohol per volume. The term "sugar-sweetened beverage" does | 23 | | not include: | 24 | | (1) beverages sweetened solely with non-caloric | 25 | | sweeteners; | 26 | | (2) beverages consisting of 100% natural fruit or |
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| 1 | | vegetable juice with no added caloric sweetener; for | 2 | | purposes of this paragraph, "natural fruit juice" and | 3 | | "natural vegetable juice" mean the original liquid | 4 | | resulting from the pressing of fruits or vegetables, or the | 5 | | liquid resulting from the dilution of dehydrated natural | 6 | | fruit juice or natural vegetable juice; | 7 | | (3) beverages in which milk, or soy, rice, or similar | 8 | | milk substitute, is the primary ingredient or the first | 9 | | listed ingredient on the label of the beverage; for | 10 | | purposes of this Act, "milk" means natural liquid milk | 11 | | regardless of animal or plant source or butterfat content, | 12 | | natural milk concentrate, whether or not reconstituted, | 13 | | regardless of animal or plant source or butterfat content, | 14 | | or dehydrated natural milk, whether or not reconstituted | 15 | | and regardless of animal or plant source or butterfat | 16 | | content; | 17 | | (4) coffee or tea without added caloric sweetener; | 18 | | (5) infant formula; | 19 | | (6) medically necessary foods, as defined in the | 20 | | federal Orphan Drug Act; and | 21 | | (7) water without any caloric sweeteners. | 22 | | "Syrup" means a liquid mixture of ingredients used in | 23 | | making, mixing, or compounding sugar-sweetened beverages using | 24 | | one or more other ingredients including, without limitation, | 25 | | water, ice, a powder, simple syrup, fruits, vegetables, fruit | 26 | | juice, vegetable juice, carbonation, or other gas. |
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| 1 | | Section 15. Permit required. | 2 | | (a) Every distributor doing business in the State shall | 3 | | file with the Department an application for a permit to engage | 4 | | in such business, for each place of business owned and operated | 5 | | by the distributor before the sooner of January 1, 2015 or a | 6 | | distributor's first acts which constitute the doing of business | 7 | | in the State. An application for a permit shall be filed on | 8 | | forms to be furnished by the Department for that purpose. An | 9 | | application must be subscribed and sworn to by a person with | 10 | | legal authority to bind the business. The application shall | 11 | | identify the owners of the applicant, the applicant's mailing | 12 | | address, the place of business to which the permit shall apply, | 13 | | and the nature of the business in which engaged, and any other | 14 | | information the Department may require for the enforcement of | 15 | | this Act. | 16 | | (b) Upon receipt of an application and any permit fee | 17 | | hereafter provided for, the Department may issue to the | 18 | | applicant, for the place of business designated, a | 19 | | non-assignable permit, authorizing the sale of sugar-sweetened | 20 | | beverages, syrups, and powders in the State. No distributor | 21 | | shall sell any sugar-sweetened beverage, syrup, or powders | 22 | | without first obtaining a permit to do so under this Act. | 23 | | Permits issued pursuant to this Section shall expire on January | 24 | | 31 of each year and may be renewed annually. | 25 | | (c) A permit may not be transferred from one person to |
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| 1 | | another, and a permit shall at all times be prominently | 2 | | displayed in a distributor's place of business. The Department | 3 | | may refuse to issue a permit to any Person previously convicted | 4 | | of violations of this Act under such procedures as the | 5 | | Department may establish by regulation. | 6 | | Section 20. Tax imposed. | 7 | | (a) There is hereby imposed an excise tax on every | 8 | | distributor for the privilege of selling the products governed | 9 | | by this Act in the State, calculated as follows: | 10 | | (1) $0.01 per ounce of bottled sugar-sweetened | 11 | | beverages sold or offered for sale to a retailer for sale | 12 | | in the State to a consumer. | 13 | | (2) The tax on syrup and powders sold or offered for | 14 | | sale to a retailer for sale in the State to a consumer, | 15 | | either as syrup or powders or as a sugar-sweetened beverage | 16 | | derived from that syrup or powder, is equal to $0.01 per | 17 | | ounce for each ounce of sugar-sweetened beverage produced | 18 | | from that syrup or powder; for purposes of calculating the | 19 | | tax, the volume of sugar-sweetened beverage produced from | 20 | | syrup or powders shall be the larger of (i) the largest | 21 | | volume resulting from use of the syrup or powders according | 22 | | to any manufacturer's instructions or (ii) the volume | 23 | | actually produced by the retailer, as reasonably | 24 | | determined by the Department. | 25 | | (3) The tax amounts set forth in this Section shall be |
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| 1 | | adjusted annually by the Department in proportion with the | 2 | | Consumer Price Index: All Urban Consumers for All Items for | 3 | | the Midwest Statistical Area, as reported by the United | 4 | | States Bureau of Labor Statistics or any successor to that | 5 | | index. | 6 | | (b) A retailer that sells bottled sugar-sweetened | 7 | | beverages, syrups, or powders in the State to a consumer, on | 8 | | which the tax imposed by this Section has not been paid by a | 9 | | distributor, is liable for the tax imposed in subsection (a) at | 10 | | the time of sale to a consumer. | 11 | | (c) The taxes imposed by this Section are in addition to | 12 | | any other taxes that may apply to persons or products subject | 13 | | to this Act. | 14 | | Section 25. Pass-through of the tax. A distributor shall | 15 | | add the amount of taxes levied by this Act to the price of | 16 | | sugar-sweetened beverages sold to a retailer, and the retailer | 17 | | shall pass the amount of the tax through to the consumer as a | 18 | | component of the final retail purchase price. The amount of the | 19 | | taxes may be stated separately on all invoices, signs, sales or | 20 | | delivery slips, bills, and statements that advertise or | 21 | | indicate the price of those beverages. | 22 | | Section 30. Report of sales and tax remittances. | 23 | | (a) Any distributor or retailer liable for the tax imposed | 24 | | by this Act shall, on or before the last day of March, June, |
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| 1 | | September, and December of each year, return to the Department | 2 | | under oath of a person with legal authority to bind the | 3 | | distributor or retailer, a statement containing its name and | 4 | | place of business, the quantity of sugar-sweetened beverages, | 5 | | syrup, and powders subject to the excise tax imposed by this | 6 | | Act sold or offered for sale in the 3 months immediately | 7 | | preceding the month in which the report is due, and any other | 8 | | information required by the Department, along with the tax due. | 9 | | (b) The Department shall deposit the proceeds of the tax | 10 | | into the Illinois Wellness Fund as described in Section 60. | 11 | | Section 35. Records of distributors. Every distributor and | 12 | | every retailer subject to this Act shall maintain for not less | 13 | | than 2 years accurate records, showing all transactions that | 14 | | gave rise, or may have given rise, to tax liability under this | 15 | | Act. Such records are subject to inspection by the Department | 16 | | at all reasonable times during normal business hours. | 17 | | Section 40. Exemptions. The following shall be exempt from | 18 | | the tax imposed by Section 20: | 19 | | (1) Bottled sugar-sweetened beverages, syrups, and | 20 | | powders sold by a distributor or a retailer expressly for | 21 | | resale or consumption outside of the State. | 22 | | (2) Bottled sugar-sweetened beverages, syrups, and | 23 | | powders sold by a distributor to another distributor that | 24 | | holds a permit issued under Section 15, if the sales |
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| 1 | | invoice clearly indicates that the sale is exempt. If the | 2 | | sale is to a person who is both a distributor and a | 3 | | retailer, the sale shall also be tax exempt and the tax | 4 | | shall be paid when the purchasing distributor-retailer | 5 | | resells the product to a retailer or a consumer. This | 6 | | exemption does not apply to any other sale to a retailer. | 7 | | Section 45. Penalties. | 8 | | (a) Any distributor, retailer, or other person subject to | 9 | | the provisions of this Act who fails to pay the entire amount | 10 | | of tax imposed by this Act by the date that payment is due, | 11 | | fails to submit a report or maintain records required by this | 12 | | Act, does business in the State of Illinois without first | 13 | | obtaining a permit as required by this Act, or violates any | 14 | | other provision of this Act, or rules and regulations adopted | 15 | | by the Department for the enforcement of this Act, shall be | 16 | | guilty of a misdemeanor and shall also be liable for the | 17 | | penalties set forth and incorporated by reference into this | 18 | | section.
| 19 | | (b) Incorporation by reference. All of the provisions of | 20 | | Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 6, 6a, | 21 | | 6b, 6c, 8, 9, 10, 11, 11a, and 12 of the Retailers' Occupation | 22 | | Tax Act, and all applicable provisions of the Uniform Penalty | 23 | | and Interest Act that are not inconsistent with this Act, apply | 24 | | to Distributors of Sugar-Sweetened Beverages to the same extent | 25 | | as if those provisions were included in this Act. References in |
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| 1 | | the incorporated sections of the Retailers' Occupation Tax Act | 2 | | to retailers, to sellers, or to persons engaged in the business | 3 | | of selling tangible personal property mean Distributors and/or | 4 | | Retailers when used in this Act. References in the incorporated | 5 | | Sections to sales of tangible personal property mean sales of | 6 | | sugar-sweetened beverages, syrups, and powders when used in | 7 | | this Act. | 8 | | (c) In addition to any other penalty authorized by law, a | 9 | | permit issued pursuant to Section 15 shall be suspended or | 10 | | revoked if any court of competent jurisdiction determines, or | 11 | | the Department finds based on a preponderance of the evidence, | 12 | | after the permittee is afforded notice and an opportunity to be | 13 | | heard, that the permittee, or any of the permittee's agents or | 14 | | employees, has violated any of the requirements, conditions, or | 15 | | prohibitions of this chapter. | 16 | | (1) For a first violation of this Act within any | 17 | | 60-month period, the permit shall be suspended for 30 days. | 18 | | (2) For a second violation of this Act within any | 19 | | 60-month period, the permit shall be suspended for 90 days. | 20 | | (3) For a third violation of this Act within any | 21 | | 60-month period, the permit shall be suspended for one | 22 | | year. | 23 | | (4) For a fourth or subsequent violation of this Act | 24 | | within any 60-month period, the license shall be revoked. | 25 | | (d) A decision of the Department under this Section is a | 26 | | final administrative decision and is subject to review under |
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| 1 | | the Administrative Review Law. | 2 | | Section 50. Unpaid taxes a debt. All taxes and penalties | 3 | | imposed under the provisions of this Act remaining due and | 4 | | unpaid shall constitute a debt to the State, which may be | 5 | | collected from the person owing same by suit or otherwise. | 6 | | Section 55. Records of Department. At the end of each | 7 | | month, the State Auditor General shall check the books and | 8 | | records of the Department and its accounts with any bank or | 9 | | banks, and shall verify the amounts collected pursuant to this | 10 | | Act and paid into the Illinois Wellness Fund within the State | 11 | | treasury. Any duty herein required of the State Auditor General | 12 | | may be performed by any duly trained clerk in his office, | 13 | | designated by the State Auditor General for that purpose. | 14 | | Section 60. Revenue distribution and establishment of | 15 | | Illinois Wellness Fund. The Illinois Wellness Fund is hereby | 16 | | created as a special fund in the State treasury. All of the | 17 | | moneys collected pursuant to the taxes imposed by Section 20 | 18 | | shall be deposited into the Illinois Wellness Fund. After | 19 | | administrative costs have been deducted, 50% of the moneys | 20 | | shall be allocated as provided in Section 65, and 50% of the | 21 | | moneys shall be allocated as provided in Section 75. All costs | 22 | | to implement this Act shall be paid from the Illinois Wellness | 23 | | Fund prior to the distribution of the funds as described in |
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| 1 | | this Section. | 2 | | Section 65. Governance and expenditure of Illinois | 3 | | Wellness Fund. | 4 | | (a) Except as otherwise provided in subsection (b), 50% of | 5 | | the moneys in the Illinois Wellness Fund shall be used as | 6 | | follows: | 7 | | (1) Up to 4% of the moneys each year shall be dedicated | 8 | | to administration of the Fund by the Office of the | 9 | | Governor, the Illinois Department of Public Health, the | 10 | | State Board of Education, and the Council of Agencies. | 11 | | (2) At least 3% but not more than 5% of the moneys | 12 | | collected into the Fund shall be dedicated to evaluation of | 13 | | the impact of the Act on the health and wellness of | 14 | | Illinoisans. Evaluation of the Act shall be conducted by an | 15 | | independent evaluator selected by the Department of Public | 16 | | Health in consultation with the Council and Advisory Board. | 17 | | The evaluation shall encompass the impact of the Wellness | 18 | | Fund and the effect of the tax on the consumption of | 19 | | sugar-sweetened beverages and obesity rates, among other | 20 | | indicators. The evaluator shall report annually to the | 21 | | Council of State Agencies and the Advisory Board on the | 22 | | progress and results of the evaluation. | 23 | | (3) At least 3% but not more than 5% of the moneys | 24 | | collected into the Fund shall be dedicated to providing | 25 | | technical assistance to and statewide coordination of |
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| 1 | | strategies and activities of recipients of funding from the | 2 | | Fund. | 3 | | (4) The remainder of the moneys in the Fund shall be | 4 | | used to support the prevention of obesity, diabetes and | 5 | | cardiovascular disease, and cancer, and for oral health | 6 | | improvements, including, but not limited to, the following | 7 | | programs: | 8 | | (A) school health and wellness, including | 9 | | increased consumption of healthy foods, increased | 10 | | physical activity and physical education, improved | 11 | | quality of physical education, increased health | 12 | | education, improved health, mental health, oral | 13 | | health, and social services in schools, and school | 14 | | facility improvements that support health; | 15 | | (B) public health leadership and infrastructure | 16 | | for obesity and chronic disease prevention; this | 17 | | funding shall support leadership, coordination, | 18 | | technical assistance, quality improvement, and | 19 | | training for programs or coalitions led by health | 20 | | departments, associations, or institutes that use | 21 | | educational, environmental, policy, and other | 22 | | evidence-based public health approaches that achieve | 23 | | the following goals: eliminating racial, ethnic, and | 24 | | socioeconomic disparities in obesity and chronic | 25 | | diseases; improving access to and consumption of | 26 | | healthy, safe, and affordable foods; reducing access |
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| 1 | | to and consumption of calorie-dense, nutrient-poor | 2 | | foods; encouraging physical activity; decreasing | 3 | | sedentary behavior; raising awareness about the | 4 | | importance of nutrition and physical activity to | 5 | | chronic disease prevention, including diabetes, | 6 | | cardiovascular disease, and cancer prevention | 7 | | education; supporting local food systems production | 8 | | and distribution; supporting clinical preventive | 9 | | services; | 10 | | (C) oral health improvement, including increased | 11 | | access to oral health education, dental sealants for | 12 | | children, and use of community prevention and health | 13 | | education strategies that reduce risk factors for oral | 14 | | and pharyngeal cancers; | 15 | | (D) community nutrition and access to healthy | 16 | | foods, including nutrition education, healthy cooking | 17 | | programs, healthy vending, healthy food procurement, | 18 | | education regarding shopping for healthy foods, and | 19 | | increasing access to healthy foods; | 20 | | (E) physical activity in communities, including | 21 | | active transportation, community walkability and | 22 | | bike-ability initiatives, multi-use trails, joint-use | 23 | | agreements, safe routes to schools, educational | 24 | | programs that promote physical activity, and | 25 | | environmental changes that increase physical activity; | 26 | | (F) worksite wellness, including promotion of |
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| 1 | | nutrition, physical activity and preventive services | 2 | | in worksites, workplace policies and environmental | 3 | | changes that support employee wellness; | 4 | | (G) local food systems, including promotion of | 5 | | access to and consumption of local foods, | 6 | | farm-to-school and farm-to-institution programs, | 7 | | healthy food procurement, community gardens, urban | 8 | | agriculture projects, community-supported agriculture | 9 | | programs, farmers markets, food hubs, beginning farmer | 10 | | training programs, and farm stands; and | 11 | | (H) regional public health hubs as described in the | 12 | | Illinois Alliance for Health State Healthcare | 13 | | Innovations Plan. | 14 | | (b) In the first 3 years after the Fund is established, 50% | 15 | | of the moneys in the Illinois Wellness Fund shall be allocated | 16 | | as follows: | 17 | | (1) 10% for administration, evaluation and technical | 18 | | support of the Fund, as provided in item (1) of subsection | 19 | | (a); | 20 | | (2) 20% for school health and wellness; | 21 | | (3) 20% for public health leadership and | 22 | | infrastructure for obesity and chronic disease prevention; | 23 | | (4) 10% for oral health; | 24 | | (5) 10% for community nutrition and access to healthy | 25 | | foods; | 26 | | (6) 10% for physical activity in communities; |
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| 1 | | (7) 10% for local food systems; | 2 | | (8) 5% for worksite wellness; and | 3 | | (9) 5% for regional health hubs. | 4 | | (c) All moneys in the Illinois Wellness Fund allocated in | 5 | | accordance with this Section shall be expended only for the | 6 | | purposes expressed in this Act and shall be used only to | 7 | | supplement existing levels of service and not to supplant | 8 | | current federal, State, or local funding for existing levels of | 9 | | services as provided in fiscal year 2014. | 10 | | (d) Entities that are eligible to receive moneys from the | 11 | | Fund under this Section include: | 12 | | (1) units of local government, including school | 13 | | districts, and State governments or governmental | 14 | | departments; | 15 | | (2) non-profit organizations; | 16 | | (3) schools; | 17 | | (4) federally Qualified Health Centers, community | 18 | | health centers, and organizations which operate a | 19 | | school-based health center certified by the Illinois | 20 | | Department of Public Health; | 21 | | (5) hospitals; | 22 | | (6) Illinois farms producing primarily fruits, | 23 | | vegetables and tree nuts for direct human consumption by | 24 | | Illinois residents; and | 25 | | (7) policy, research, or training institutes or | 26 | | centers.
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| 1 | | Section 70. Illinois Wellness Fund; governance. | 2 | | (a) The Illinois Wellness Fund shall be governed by a | 3 | | Council of State Agencies with input from a multi-sector | 4 | | Advisory Board. The Council of State Agencies shall be | 5 | | comprised of one representative from each of the following | 6 | | Departments: the Department of Public Health, the Department of | 7 | | Human Services, State Board of Education, the Department of | 8 | | Healthcare and Family Services, the Department on Aging, the | 9 | | Department of Transportation, and the Department of | 10 | | Agriculture. | 11 | | (b) The Council's functions shall include: | 12 | | (1) distribution of the Illinois Wellness Fund moneys | 13 | | pursuant to Section 65 to eligible entities each year, | 14 | | including: | 15 | | (A) allocation of funds for staff and resources to | 16 | | State agencies responsible for administering the | 17 | | Wellness Fund, including a Health in All Policies | 18 | | Coordinator to support the Council of State Agencies | 19 | | and Advisory Board; | 20 | | (B) selection of and allocation to eligible | 21 | | entities, including organizations, associations, and | 22 | | universities, that provide technical assistance to | 23 | | request for proposal grantees and evaluation of the | 24 | | impact of the Act; | 25 | | (C) distribution of one-half of the funds |
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| 1 | | allocated for public health leadership and | 2 | | infrastructure under Section 65 directly to Local | 3 | | Health Departments via an allocation formula developed | 4 | | by the Department of Public Health for the purpose of | 5 | | providing local coordination of Illinois Wellness Fund | 6 | | grantees within their jurisdiction, if any, and for | 7 | | local leadership of educational, environmental, | 8 | | policy, and other evidence-based public health | 9 | | approaches; | 10 | | (D) distribution of the remaining funds to | 11 | | eligible entities as recommended by the Advisory Board | 12 | | based on a request for proposal process or processes; | 13 | | and | 14 | | (E) to advise on the selection of evaluators and | 15 | | provide input on the evaluation design, goals, and | 16 | | methods, at least annually receive and review a | 17 | | progress report on the results of the evaluation; | 18 | | (2) distribution of Illinois Wellness Fund moneys to | 19 | | the Illinois Medicaid program pursuant to Section 75; and | 20 | | (3) submission of a report to the General Assembly | 21 | | every 3 years on the allocation of the funds and summary | 22 | | results of the impact evaluation of the Illinois Wellness | 23 | | Fund under Section 65 of this Act and the tax. | 24 | | (c) The multi-sector Advisory Board shall include the | 25 | | following members: | 26 | | (1) one obesity prevention advocate appointed by a |
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| 1 | | statewide coalition working on reducing obesity through | 2 | | policy, systems, and environmental changes; | 3 | | (2) one school superintendent appointed by an | 4 | | association representing school administrators; | 5 | | (3) one physical education or health teacher appointed | 6 | | by an association representing physical education and | 7 | | health teachers; | 8 | | (4) one oral health advocate appointed by a statewide | 9 | | coalition working to promote oral health; | 10 | | (5) one person appointed by a statewide organization | 11 | | focusing on chronic disease prevention; | 12 | | (6) one person appointed by an organization or | 13 | | coalition focusing on active transportation; | 14 | | (7) one person appointed by an organization or | 15 | | coalition representing employer wellness initiatives; | 16 | | (8) one person appointed by an organization or | 17 | | coalition promoting healthy foods initiatives; | 18 | | (9) one person appointed by a community-based obesity | 19 | | prevention program; | 20 | | (10) one person appointed by an association | 21 | | representing hospitals across the State; | 22 | | (11) 2 people appointed by associations representing | 23 | | health departments; one person shall be appointed from the | 24 | | southern region of the State, and one person shall be | 25 | | appointed from the northern region of the State; | 26 | | (12) one person appointed by an association |
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| 1 | | representing public health practitioners; | 2 | | (13) one pediatrician appointed by an organization | 3 | | representing pediatricians in the State; | 4 | | (14) one dietitian appointed by an association | 5 | | representing dietitians in the State; | 6 | | (15) 2 people appointed by a community-based healthy | 7 | | eating and active living coalition; | 8 | | (16) 2 people representing communities of color or | 9 | | communities that are disproportionately impacted by | 10 | | obesity, appointed by the Governor; and | 11 | | (17) 4 State legislators, one appointed by each of the | 12 | | following: the Speaker and Minority Leader of the Illinois | 13 | | House of Representatives and the President and Minority | 14 | | Leader of the Illinois Senate. | 15 | | (d) The Advisory Board's functions shall include: | 16 | | (1) to review and make recommendations to the Council | 17 | | of Agencies and Office of the Governor on the Fund | 18 | | allocation formula every 3 years based on an assessment of | 19 | | the State's current conditions and needs related to chronic | 20 | | disease prevention; the allocation formula may include | 21 | | funds for expanding existing wellness programs, policies, | 22 | | and initiatives, and funds for starting new programs, | 23 | | policies, or initiative; | 24 | | (2) development and implementation of a request for | 25 | | proposal process for allocating the Illinois Wellness Fund | 26 | | moneys via grants across the State each year; the Advisory |
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| 1 | | Board shall make funding recommendations to the Council of | 2 | | Agencies for distribution of the funds; and | 3 | | (3) to annually receive and review the evaluation | 4 | | progress report. | 5 | | Section 75. Expenditures for the Illinois Medicaid | 6 | | Program. Fifty percent of all moneys collected from the tax | 7 | | shall be allocated from the Illinois Wellness Fund to the | 8 | | Illinois Medicaid program by means of a Medicaid Fund. The | 9 | | Department of Healthcare and Family Services shall seek | 10 | | permission to amend the Medicaid State Plan to maximize the | 11 | | federal match, as needed. The Medicaid Fund shall be designated | 12 | | to include payment for the following services: | 13 | | (1) restoring adult dental services and expanding | 14 | | dental services for children and adults, including | 15 | | expansion of prevention services; | 16 | | (2) providing payments for medical nutrition therapy, | 17 | | care coordination, weight management programs, and other | 18 | | evidence-based multi-disciplinary obesity treatment | 19 | | programs for overweight and obese patients, including | 20 | | coverage for services from dietitians, social workers, | 21 | | psychologists, and pharmacists; | 22 | | (3) providing payment for non-licensed community | 23 | | providers providing evidence-based physical
activity and | 24 | | nutrition programs for obese children and adults and | 25 | | diabetes and other health-behavior focused chronic disease |
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| 1 | | self-management and chronic disease prevention programs | 2 | | for children and
adults, including, but not
limited to, | 3 | | participation in
the evidence-based Diabetes Prevention | 4 | | Program, Chronic
Disease Self-Management Program, MEND | 5 | | program, and Diabetes
Self-Management Program; | 6 | | (4) funding coverage for all US Preventive Services | 7 | | Task Force A & B Recommendations; | 8 | | (5) supporting and expanding language access services | 9 | | for Medicaid recipients; and | 10 | | (6) funding activities of the State Healthcare | 11 | | Innovations Plan and Path to Transformation for Medicaid. | 12 | | Any remaining funds may be used for existing services and | 13 | | purposes of the Illinois Medicaid program. | 14 | | Section 80. Rulemaking. The Department of Public Health, | 15 | | the State Board of Education, the Department of Healthcare and | 16 | | Family Services, and the Department of Revenue may adopt rules | 17 | | to implement the provisions of this Act. | 18 | | Section 97. Severability. The provisions of this Act are | 19 | | severable under Section 1.31 of the Statute on Statutes. | 20 | | Section 99. Effective date. This Act takes effect January | 21 | | 1, 2015.".
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