Illinois General Assembly - Full Text of SB1584
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Full Text of SB1584  99th General Assembly




State of Illinois
2015 and 2016


Introduced 2/20/2015, by Sen. Mattie Hunter


New Act
35 ILCS 1010/1-45
30 ILCS 105/5.866 new

    Creates the Healthy Eating Active Living (HEAL) Act. Imposes a tax on distributors of bottled sugar-sweetened beverages, syrups, or powders at the rate of $0.01 per ounce of bottled sugar-sweetened beverages sold or offered for sale to a retailer for sale in the State to a consumer. Requires those distributors to obtain permits. Provides that 2% of the moneys shall be deposited into the Tax Compliance and Administration Fund for the administrative costs of the Department of Revenue, and 98% of the moneys shall be deposited into the Illinois Wellness Fund to be used for wellness programs and for expanded obesity prevention and treatment services for Medicaid beneficiaries. Creates an Advisory Council to govern the distribution of Illinois Wellness Fund moneys. Effective July 1, 2015.

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SB1584LRB099 07654 HLH 28759 b

1    AN ACT concerning public health.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the
5Healthy Eating Active Living (HEAL) Act.
6    Section 5. Findings and purpose. The General Assembly finds
8    Over the past 30 years, the obesity rate in the United
9States has substantially increased. The prevalence of adult
10obesity has more than doubled during that time. According to
11statistics compiled by the Centers for Disease Control, nearly
1228% of Illinois' adult residents in 2012 were considered obese
13(body mass index (BMI) of 30 and above) and the rate was even
14higher among African American (40.5%) and Hispanic (31.2%)
16    For children, the increase in obesity has been even more
17dramatic, with the obesity rate among children ages 6-11 more
18than quadrupling over the last 4 decades. The State of Illinois
19is not immune to the problem. Over 19% of Illinois children who
20are 17 years of age or younger are obese, the ninth worst rate
21in the nation.
22    Obese children are at least twice as likely as non-obese
23children to become obese adults. Research indicates that the



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1likelihood of an obese child becoming an obese adult increases
2with age; adolescents who are obese have a greater likelihood
3of being obese in adulthood as compared to younger children.
4    The obesity epidemic has led to a dramatic increase in
5obesity-related health conditions, such as type 2 diabetes,
6asthma, and heart disease. These health conditions cost the
7nation billions of dollars in health care costs and lost
8productivity. Overweight and obesity account for $147 billion
9in health care costs nationally, or 9% of all medical spending
10per year. Obesity-related annual medical expenditures in the
11State of Illinois are estimated at $6.3 billion dollars, with
12over $1 billion of that as a cost to the State Medicaid
14    Numerous studies have established a link between obesity
15and consumption of sugar-sweetened beverages such as soft
16drinks, energy drinks, sweet teas, and sports drinks. One study
17found that just one sugary drink per day increased a child's
18odds of becoming obese by 60%. Rigorous scientific studies show
19that consuming sugary drinks leads to obesity and diabetes more
20than any other food category. One meta analysis of eight
21studies examining the role of sugar-sweetened beverage
22consumption on health found that consumption was significantly
23associated with type 2 diabetes based on over 15,000 reported
24cases of this condition. Additionally, consumption of
25sugar-sweetened beverages has been linked to several diseases
26independent of a person's weight status, including type 2



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1diabetes and heart disease, making sugary drinks especially
2harmful to a person's health. A 2014 study showed an increased
3risk for death from cardiovascular disease independent of
4weight status. Adults who drink 1 to 2 servings of sugary
5drinks per day are 26% more likely to develop type 2 diabetes
6than those who drink 0 to 1 per month.
7    Research has found that sugary drinks have a unique and
8harmful effect on health. Liquid calories don't trigger a
9person's sense of feeling "full", and contribute to excess
10calorie consumption without the person being aware.
11    Consumption of sugar-sweetened beverages has gone up over
12500% in the last 50 years, and those beverages are now the
13number one source of added sugar in the American diet (51% of
14added sugars when considering soft drinks, fruit drinks, and
15sweetened teas). A study of a 5-year period between 1999 and
162004 showed that children and adolescents consumed 10-15% of
17their daily caloric intake from sugar-sweetened beverages,
18which offer little or no nutritional value and massive
19quantities of added sugars. For example, a single 12-ounce can
20of soda contains the equivalent of approximately 10 teaspoons
21of sugar; the American Heart Association recommends that women
22consume no more than 6 teaspoons of added sugar per day and men
23consume no more than 9 teaspoons of added sugar per day.
24Teenagers and young adults drink more sugary drinks than other
25age groups, and low-income persons consume more sugary drinks
26in relation to their overall diet than those with higher



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2    In its adult and pediatric nutrition recommendations, the
3American Heart Association recommends that no-calorie and
4low-calorie beverages like water, diet soft drinks, fat free or
5low fat milk, and other beverages that have 5 grams or less of
6added caloric sweetener per 12 fluid ounces are better choices
7than full calorie soft drinks, and Americans should limit the
8amount of added sugars in the foods they eat. The U.S.D.A. 2010
9Dietary Guidelines for Americans also recommends limiting
10added sugars in the diet and reducing intake of sugar-sweetened
12    The Institute of Medicine recommends a multi-pronged
13approach to obesity prevention, including: integrating
14physical activity opportunities into communities, making
15healthy food and beverages available everywhere, adopting
16policies and practices to reduce sugar-sweetened beverage
17consumption, improving marketing and messaging to the public
18regarding adopting a healthy lifestyle, expanding the role of
19health care providers, insurers, and employers in obesity
20prevention, and working to improve school health and wellness.
21Studies have shown that, when compared with more affluent
22communities, low-income communities have less access to fresh,
23affordable food, contain more fast food places in the
24communities and near their schools, and have less access to
25safe places to get physical activity, including access to fewer
26adequate sidewalks. Additionally, the American Medical



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1Association adopted Clinical Practice Guidelines for the
2treatment of pediatric overweight, which the American Academy
3of Pediatrics has adopted and recommends to providers.
4    A study found that a penny-per-ounce excise tax on
5sugar-sweetened beverages in Illinois could result in a 23.5%
6reduction in sugar-sweetened beverage consumption, 185,127
7fewer obese Illinoisans (a 9.3% reduction in youth obesity and
85.2% reduction in adult obesity), 3,442 fewer incidences of
9diabetes, and a $150.8 million reduction in obesity-related
10healthcare costs in the first year. Another study found that
11reducing obesity by 5% in Illinois could save Illinois $9
12billion over the next 10 years. The tax is estimated to raise
13over $600 million in the first year in Illinois.
14    It is the intent of the General Assembly, by adopting this
15Act and creating an Illinois Wellness Fund to provide targeted
16prevention initiatives in Illinois communities and additional
17health and prevention funding to Medicaid, to diminish the
18human and economic costs of sugar-sweetened beverages,
19obesity, and related chronic disease in the State of Illinois.
20This Act is intended to create a dedicated revenue source for
21programs designed to prevent and treat obesity and related
22chronic diseases by creating and implementing expanded
23opportunities for Illinoisans to be healthy, especially in
24high-need communities, and to discourage excessive consumption
25of sugar-sweetened beverages by increasing the price of these
26products, thereby reducing the health and economic burden of



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1sugar-sweetened drinks in Illinois.
2    Section 10. Definitions. For purposes of this Act:
3    "Advisory Council" means the Advisory Council for Health
4and Wellness established under Section 70.
5    "Bottle" means any closed or sealed container regardless of
6size or shape, including, without limitation, those made of
7glass, metal, paper, plastic, or any other material or
8combination of materials.
9    "Bottled sugar-sweetened beverage" means any
10sugar-sweetened beverage contained in a bottle that is ready
11for consumption without further processing such as, without
12limitation, dilution or carbonation.
13    "Caloric sweetener" means any caloric substance suitable
14for human consumption which adds calories to the diet of a
15person who consumes that substance, is used as an ingredient of
16a beverage, syrup, or powder, and includes, without limitation,
17sucrose, fructose, glucose, fruit juice concentrate, or other
18sugars. "Caloric sweetener" excludes non-caloric sweeteners.
19    "Consumer" means a person who purchases a sugar-sweetened
20beverage for consumption and not for sale to another.
21    "Department" means the Department of Revenue.
22    "Distributor" means any person, including manufacturers
23and wholesale dealers, who receives, stores, manufactures,
24bottles, or distributes bottled sugar-sweetened beverages,
25syrups, or powders, for sale to retailers doing business in the



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1State, whether or not that person also sells such products to
3    "Fund" means the Illinois Wellness Fund, established
4pursuant to Section 55.
5    "High-need community" means communities designated as such
6by the Department of Public Health by rule pursuant to
7subsection (b) of Section 60 of this Act.
8    "Non-caloric sweetener" means any non-caloric substance
9suitable for human consumption which does not add calories to
10the diet of a person who consumes that substance, is used as an
11ingredient of a beverage, syrup, or powder, and includes,
12without limitation, aspartame, saccharin, stevia, and
13sucralose. "Non-caloric sweetener" excludes caloric
15    "Person" means any natural person, partnership,
16cooperative association, limited liability company,
17corporation, personal representative, receiver, trustee,
18assignee, or any other legal entity.
19    "Place of business" means any place where sugar-sweetened
20beverages, syrups, or powders are manufactured or received for
21sale in the State.
22    "Powders" means any solid mixture of ingredients used in
23making, mixing, or compounding sugar-sweetened beverages by
24mixing the powder with any one or more other ingredients,
25including without limitation water, ice, syrup, simple syrup,
26fruits, vegetables, fruit juice, vegetable juice, carbonation



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1or other gas. A powder which indicates on the label that it can
2be mixed with water is subject to the tax. Notwithstanding any
3other provision, a powder which indicates on the label that it
4cannot be mixed with water and is intended by the manufacturer
5to be mixed only with alcohol or milk is not subject to the
7    "Retailer" means any person who sells or otherwise
8dispenses in the State a sugar-sweetened beverage to a consumer
9whether or not that person is also a distributor as defined in
10this Section.
11    "Sale" means the transfer of title or possession for
12valuable consideration regardless of the manner by which the
13transfer is completed.
14    "State" means the State of Illinois.
15    "Sugar-sweetened beverage" means any nonalcoholic
16beverage, carbonated or noncarbonated, which is intended for
17human consumption and contains more than 5 grams of caloric
18sweetener per 12 fluid ounces. As used in this definition,
19"nonalcoholic beverage" means any beverage that contains less
20than one-half of one percent alcohol per volume. The term
21"sugar-sweetened beverage" does not include:
22        (1) beverages sweetened solely with non-caloric
23    sweeteners;
24        (2) beverages sweetened with 5 grams or less of caloric
25    sweeteners per 12 fluid ounces;
26        (3) beverages consisting of 100% natural fruit or



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1    vegetable juice with no caloric sweetener; for purposes of
2    this paragraph, "natural fruit juice" and "natural
3    vegetable juice" mean the original liquid resulting from
4    the pressing of fruits or vegetables, juice concentrate, or
5    the liquid resulting from the dilution with water of
6    dehydrated natural fruit juice or natural vegetable juice;
7        (4) 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        (5) coffee or tea without caloric sweetener;
18        (6) infant formula;
19        (7) medically necessary foods, as defined in the
20    federal Orphan Drug Act; and
21        (8) water without any caloric sweeteners.
22    "Syrup" means a liquid mixture of ingredients used in
23making, mixing, or compounding sugar-sweetened beverages using
24one or more other ingredients including, without limitation,
25water, ice, a powder, simple syrup, fruits, vegetables, fruit
26juice, vegetable juice, carbonation, or other gas. A syrup



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1which indicates on the label that it can be mixed with water is
2subject to the tax. Notwithstanding any other provision, a
3syrup which indicates on the label that it cannot be mixed with
4water, and is intended by the manufacturer to be mixed only
5with alcohol or milk is not subject to the tax.
6    Section 15. Permit required.
7    (a) Beginning January 1, 2016, every distributor doing
8business in the State who wishes to engage in the business of
9selling sugar-sweetened beverages, syrups, or powders subject
10to tax under this Act shall file with the Department an
11application for a permit to engage in such business. An
12application shall be filed for each place of business owned and
13operated by the distributor. An application for a permit shall
14be filed on forms to be furnished by the Department for that
15purpose. Each such application shall be signed and verified and
16shall state: (1) the name and social security number of the
17applicant; (2) the address of his principal place of business;
18(3) the address of the principal place of business from which
19he engages in the business of distributing sugar-sweetened
20beverages, syrups, or powders to retailers in this State and
21the addresses of all other places of business, if any
22(enumerating such addresses, if any, in a separate list
23attached to and made a part of the application), from which he
24engages in the business of distributing sugar-sweetened
25beverages, syrups, or powders to retailers in this State; (4)



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1the name and address of the person or persons who will be
2responsible for filing returns and payment of taxes due under
3this Act; (5) in the case of a corporation, the name, title,
4and social security number of each corporate officer; (6) in
5the case of a limited liability company, the name, social
6security number, and FEIN number of each manager and member;
7and (7) such other information as the Department may reasonably
8require. The application shall contain an acceptance of
9responsibility signed by the person or persons who will be
10responsible for filing returns and payment of the taxes due
11under this Act.
12    (b) The Department may deny a permit to any applicant if a
13person who is named as the owner, a partner, a manager or
14member of a limited liability company, or a corporate officer
15of the applicant on the application for the certificate of
16registration, is or has been named as the owner, a partner, a
17manager or member of a limited liability company, or a
18corporate officer, on the application for the permit or
19certificate of registration of a retailer under the Retailers'
20Occupation Tax Act that is in default for moneys due under this
21Act or any other tax or fee Act administered by the Department.
22For purposes of this paragraph only, in determining whether a
23person is in default for moneys due, the Department shall
24include only amounts established as a final liability within
25the 20 years prior to the date of the Department's notice of
26denial of a certificate of registration. The Department, in its



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1discretion, may require that the application for permit be
2submitted electronically.
3    (c) Upon receipt of an application and the annual permit
4fee of $250, the Department may issue to the applicant, for the
5place of business designated, a permit, authorizing the sale of
6sugar-sweetened beverages, syrups, and powders in the State. No
7distributor shall sell any sugar-sweetened beverage, syrup, or
8powders without first obtaining a permit to do so under this
9Act. Permits issued pursuant to this Section shall expire one
10year from the date of issuance and may be renewed annually.
11Fees shall be deposited into the Tax Compliance and
12Administration Fund.
13    (d) A permit may not be transferred or assigned from one
14person to another, and a permit shall at all times be
15prominently displayed in a distributor's place of business. The
16Department may refuse to issue a permit to any person
17previously convicted of violations of this Act under such
18procedures as the Department may establish by regulation.
19    (e) The Department may, in its discretion, issue the permit
21    Section 20. Tax imposed.
22    (a) Beginning on January 1, 2016, there is imposed a tax on
23every distributor for the privilege of selling the products
24governed by this Act in the State. The tax shall be imposed at
25the rate of $0.01 per ounce of bottled sugar-sweetened



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1beverages sold or transferred to a retailer in the State. The
2tax on syrup and powder sold or transferred to a retailer in
3the State, either as syrup or powder or as a sugar-sweetened
4beverage derived from that syrup or powder, is equal to $0.01
5per ounce for each ounce of sugar-sweetened beverage produced
6from that syrup or powder. For purposes of calculating the tax,
7the volume of sugar-sweetened beverage produced from syrup or
8powder shall be the larger of (i) the largest volume resulting
9from use of the syrup or powder according to any manufacturer's
10instructions or (ii) the volume actually produced by the
11retailer. The taxes imposed by this Section are in addition to
12any other taxes that may apply to persons or products subject
13to this Act.
14    (b) A retailer that sells bottled sugar-sweetened
15beverages, syrups, or powders in the State to a consumer, on
16which the tax imposed by this Section has not been paid by a
17distributor, is liable for the tax imposed in subsection (a) at
18the time of sale to a consumer.
19    Section 25. Pass-through of the tax. A distributor shall
20add the amount of tax levied by this Act to the price of
21sugar-sweetened beverages sold to a retailer, and the retailer
22shall pass the amount of the tax through to the consumer as a
23component of the final retail purchase price. The amount of the
24taxes may be stated separately on all invoices, signs, sales or
25delivery slips, bills, and statements that advertise or



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1indicate the price of those beverages.
2    Section 30. Report of sales and tax remittances.
3    (a) Any distributor or retailer liable for the tax imposed
4by this Act shall, on or before the twentieth day of each
5calendar month, return to the Department a statement containing
6its name and place of business, the quantity of sugar-sweetened
7beverages, syrup, and powders subject to the tax imposed by
8this Act sold or offered for sale in the month preceding the
9month in which the report is due, and any other information
10required by the Department, along with the tax due.
11    (b) If the taxpayer's average monthly tax liability to the
12Department under this Act, was $20,000 or more during the
13preceding 4 complete calendar quarters, he shall file a return
14with the Department each month by the twentieth day of the
15month next following the month during which such tax liability
16is incurred and shall make payment to the Department on or
17before the 7th, 15th, 22nd, and last day of the month during
18which such liability is incurred.
19    (c) The Department, in its discretion, may require that
20returns be submitted and payments be made electronically.
21    Section 35. Records of distributors. Every distributor and
22every retailer subject to this Act shall maintain for not less
23than 4 years accurate books and records, showing all
24transactions that gave rise, or may have given rise, to tax



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1liability under this Act. Such records are subject to
2inspection by the Department at all reasonable times during
3normal business hours.
4    Section 40. Exemptions. The following shall be exempt from
5the tax imposed under this Act:
6    (1) Bottled sugar-sweetened beverages, syrups, and powders
7sold by a distributor or a retailer expressly for resale or
8consumption outside of the State.
9    (2) Bottled sugar-sweetened beverages, syrups, and powders
10sold by a distributor to another distributor that holds a
11permit issued under Section 15 if the sales invoice clearly
12indicates that the sale is exempt. If the sale is to a person
13who is both a distributor and a retailer, the sale shall also
14be tax exempt and the tax shall be paid when the purchasing
15distributor-retailer resells the product to a retailer or a
16consumer. This exemption does not apply to any other sale to a
18    Section 45. Penalties.
19    (a) Any distributor, retailer, or other person subject to
20the provisions of this Act who fails to pay the entire amount
21of tax imposed by this Act by the date that payment is due,
22fails to submit a report or maintain records required by this
23Act, does business in the State of Illinois without first
24obtaining a permit as required by this Act, or violates any



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1other provision of this Act, or rules and regulations adopted
2by the Department for the enforcement of this Act, shall be
3guilty of a misdemeanor and shall also be liable for the
4penalties set forth and incorporated by reference into this
6    (b) Incorporation by reference. All of the provisions of
7Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
86c, 8, 9, 10, 11, 11a, and 12 of the Retailers' Occupation Tax
9Act, and all applicable provisions of the Uniform Penalty and
10Interest Act that are not inconsistent with this Act, apply to
11distributors of sugar-sweetened beverages to the same extent as
12if those provisions were included in this Act. References in
13the incorporated Sections of the Retailers' Occupation Tax Act
14to retailers, to sellers, or to persons engaged in the business
15of selling tangible personal property mean distributors and
16retailers when used in this Act. References in the incorporated
17Sections to sales of tangible personal property mean sales of
18sugar-sweetened beverages, syrups, or powders when used in this
20    (c) In addition to any other penalty authorized by law, a
21permit issued pursuant to Section 15 shall be suspended or
22revoked if any court of competent jurisdiction determines, or
23the Department finds based on a preponderance of the evidence,
24after the permittee is afforded notice and an opportunity to be
25heard, that the permittee, or any of the permittee's agents or
26employees, has violated any of the requirements, conditions, or



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1prohibitions of this Act. For a first violation of this Act
2within any 60-month period, the permit shall be suspended for
330 days. For a second violation of this Act within any 60-month
4period, the permit shall be suspended for 90 days. For a third
5violation of this Act within any 60-month period, the permit
6shall be suspended for one year. For a fourth or subsequent
7violation of this Act within any 60-month period, the license
8shall be revoked.
9    (d) A decision of the Department under this Section is a
10final administrative decision and is subject to review by the
11Illinois Independent Tax Tribunal.
12    Section 50. Unpaid taxes a debt. The tax herein required to
13be collected by any person distributing sugar-sweetened
14beverages, powders, or syrup for sale to a retailer in the
15State, and any such tax collected by that person shall
16constitute a debt owed by that person to this State.
17    Section 55. Revenue distribution; establishment of
18Illinois Wellness Fund. The Illinois Wellness Fund is hereby
19created as a special fund in the State treasury. All of the
20moneys collected by the Department pursuant to the taxes
21imposed by Section 20 shall be deposited as follows: 2% shall
22be deposited into the Tax Compliance and Administration Fund
23for the administrative costs of the Department, and 98% shall
24be deposited into the Illinois Wellness Fund to be used for the



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1purposes set forth in Sections 60 and 65 of this Act. All
2interest earned on moneys in the Illinois Wellness Fund shall
3remain in the Fund.
4    Section 60. Expenditure of Illinois Wellness Fund for
5community prevention and wellness initiatives.
6    (a) Fifty percent of moneys in the Illinois Wellness Fund
7shall be used to support community prevention and wellness
8initiatives, as follows:
9        (1) Up to 1% shall be dedicated to administration of
10    the Fund by the Illinois Department of Public Health, with
11    administrative support from the Advisory Council and a
12    Healthy in All Policies coordinator.
13        (2) At least 1% but not more than 2% shall be dedicated
14    to evaluation of the impact of the Act on the health and
15    wellness of Illinoisans. Evaluation of the Act shall be
16    conducted by an independent evaluator selected by the
17    Department of Public Health in consultation with the
18    Advisory Council. Those funds may also be used to support
19    relevant surveillance systems to support tracking of the
20    impact of the Act. The evaluation shall encompass the
21    impact of the Illinois Wellness Fund and the tax on the
22    consumption of sugar-sweetened beverages and obesity
23    rates, among other indicators. The evaluation shall also
24    include a summary of how moneys in the Illinois Wellness
25    Fund were allocated to eligible entities and spent within



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1    the Illinois Medicaid program. The evaluator shall report
2    annually to the Advisory Council on the progress and
3    results of the evaluation. The Advisory Council may adjust
4    the percentage of funds allocated to each category every 3
5    years based on the evaluation results and current obesity
6    prevention needs.
7        (3) Two percent shall be dedicated to eligible entities
8    to provide technical assistance to and statewide
9    coordination of strategies and activities of recipients of
10    funding from the Fund, including, but not limited to,
11    training and education around obesity prevention best
12    practices, coordination of strategies across grantees, and
13    quality improvement for obesity prevention and treatment
14    initiatives.
15        (4) Twenty percent shall be allocated to local health
16    departments via a formula developed by the Illinois
17    Department of Public Health based on population and need;
18    those moneys shall be used for the following activities and
19    services:
20            (A) conducting evidence-based obesity and chronic
21        disease prevention efforts to achieve at least one of
22        the following goals: eliminating racial, ethnic, and
23        socioeconomic disparities in obesity and chronic
24        disease incidence; improving access to and consumption
25        of healthy, safe, and affordable foods; reducing
26        access to and consumption of calorie-dense,



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1        nutrient-poor foods; encouraging physical activity and
2        decreasing sedentary behavior; raising awareness about
3        the importance of nutrition and physical activity for
4        the prevention of chronic diseases; supporting the
5        consumption of foods that are grown or produced
6        locally; supporting the use of evidence-based clinical
7        preventive services; and promoting breastfeeding; and
8            (B) leading and coordinating the efforts of other
9        organizations in their jurisdictions that are engaged
10        in similar efforts to achieve these goals, whether
11        funded through this Act or otherwise.
12        (5) The remaining 75% shall be used to support the
13    prevention of obesity, diabetes, cardiovascular disease,
14    and cancer, as well as oral health improvement, including
15    but not limited to the following:
16            (A) funds to support school and early childhood
17        health and wellness, including increased access to
18        healthy foods, increased physical activity and
19        physical education, improved quality of physical
20        education, increased nutrition education, improved
21        health, mental health, oral health, and social
22        services in schools, increased opportunities for home
23        economics courses (cooking and healthy grocery
24        shopping education) and school and early childhood
25        education facility improvements that support health;
26            (B) funds to support community nutrition and



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1        access to healthy foods, including nutrition
2        education, healthy cooking programs, healthy vending
3        initiatives, healthy food procurement, education
4        regarding shopping for healthy foods, increased
5        support for breastfeeding promotion programs, and
6        increasing access to healthy foods;
7            (C) funds to support physical activity in
8        communities, including active transportation,
9        community walkability and bike-ability initiatives,
10        multi-use trails, joint-use agreements, safe routes to
11        schools programs, educational programs that promote
12        physical activity, physical activity after school
13        programs,environmental changes that increase physical
14        activity; initiatives that create physically safe and
15        accessible areas for physical activity and play;
16            (D) funds to support worksite wellness, including
17        promotion of nutrition, physical activity and
18        preventive services in worksites, workplace policies,
19        and environmental changes that support employee
20        wellness;
21            (E) funds to support local food systems, including
22        promotion of, access to, and consumption of local
23        foods, farm-to-school and farm-to-institution
24        programs, community gardens, urban agriculture
25        projects, community-supported agriculture programs,
26        farmers markets and double-value coupons programs for



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1        SNAP recipients at farmers markets, food hubs,
2        beginning farmer training programs, and farm stands;
3        and
4            (F) funds to support oral health improvement,
5        including increased access to oral health education,
6        dental sealants for children, and use of community
7        prevention and health education strategies that reduce
8        risk factors for oral and pharyngeal cancers.
9    (b) At least 50% of the funds allocated under this Section
10shall be allocated to eligible entities serving high-need
11communities. The Illinois Department of Public Health shall
12adopt rules to designate high-need communities, with poverty
13rates as the primary indicator of need, and may use obesity and
14chronic disease rates as sub-indicators of need for
15prioritizing funds to these high-need communities.
16    (c) All moneys in the Illinois Wellness Fund, spent in
17accordance with this Section, shall be expended only for the
18purposes expressed in this Act and shall be used only to
19supplement existing levels of service and not to supplant
20current federal, State, or local funding for existing levels of
21services as provided in fiscal year 2014. Entities that are
22eligible to receive moneys from this Section include:
23        (1) units of local government, including local public
24    health departments, local planning and transportation
25    departments, local school districts, and local park
26    districts;



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1        (2) statewide or regional non-profit organizations,
2    including those with local chapters, members, or
3    affiliates;
4        (3) universities and institutions of higher learning;
5        (4) community-based health improvement coalitions,
6    which may include:
7                (A) schools and early childhood education
8            centers;
9                (B) non-profit community-based organizations;
10                (C) Federally Qualified Health Centers,
11            community health centers, and organizations which
12            operate a school-based health center certified by
13            the Illinois Department of Public Health;
14                (D) non-profit hospitals and health systems;
15                (E) Illinois farms producing primarily fruits,
16            vegetables, and tree nuts for direct human
17            consumption by Illinois residents; and
18                (F) policy, research, or training institutes
19            or centers; and
20                (G) local public health, planning, and
21            transportation departments, and local park and
22            school districts; and
23        (5) individual non-profit community-based
24    organizations working to improve health, as determined by
25    the Advisory Council.
26    (d) The Department of Public Health shall distribute the



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1Illinois Wellness Fund moneys under this Section via grants to
2eligible entities within 120 days after the start of each
3fiscal year including:
4        (1) allocation of funds for staff and resources needed
5    to administer the Fund and Advisory Council, including a
6    Health in All Policies Coordinator to support the Advisory
7    Council;
8        (2) distribution the funds allocated to local health
9    departments via formula as described in Section 60;
10        (3) distribution of the remaining funds to eligible
11    entities as recommended by the Advisory Council for Health
12    and Wellness based on a request for proposal process; at
13    least half of the funds shall be dedicated to entities
14    serving high-need communities; and
15        (4) to advise on the selection of evaluators and
16    provide input on the evaluation design, goals, and methods,
17    at least annually receive and review a progress report on
18    the results of the evaluation.
19    Section 65. Expenditures of the Illinois Wellness Fund for
20the Illinois Medicaid Program. Fifty percent of all moneys
21collected shall be expended by the Department of Healthcare and
22Family Services for expanded prevention an obesity treatment
23services for Medicaid beneficiaries. These additional funds
24shall not supplant existing State funds. The Department shall
25seek all required amendments to the existing State Plan. The



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1Department of Healthcare and Family Services shall submit a
2report at the end of each State fiscal year to the Advisory
3Council on the expanded services provided along with the
4savings and costs associated with these services to the
5Medicaid program. The Department of Healthcare and Family
6Services shall cover the following expanded prevention and
7obesity treatment services for all Medicaid beneficiaries:
8        (1) to the extent not already provided by EPSDT under
9    Federal Medicaid laws, coverage for all services
10    recommended for pediatric prevention, assessment and
11    treatment of overweight and obesity set forth by the
12    American Academy of Pediatrics (clinical practice
13    guidelines) and those recommended by the U.S. Preventive
14    Services Task Force Grade B Recommendation to screen for
15    obesity in children and adolescents. Medicaid benefits
16    must follow these recommendations and reimbursement rates
17    must be set at a level that ensures appropriate access to
18    services outlined in the recommendations;
19        (2) coverage for medical nutrition therapy, care
20    coordination, weight management programs, diabetes
21    education and multi-disciplinary obesity treatment
22    programs for overweight and obese children and adults,
23    including coverage for services from dieticians, social
24    workers, psychologists, and pharmacists;
25        (3) coverage for community-based, evidence-based
26    physical activity and nutrition programs, diabetes and



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1    other health-behavior focused chronic disease
2    self-management and chronic disease prevention programs
3    for children and adults, including but not limited to,
4    participation in the evidence-based Diabetes Prevention
5    Program, MEND program, Chronic Disease Self-Management
6    Program, and Diabetes Self-Management Program;
7        (4) coverage for dental prevention services, including
8    routine oral health screenings, cleanings, and oral health
9    maintenance services for adults; and
10        (5) coverage for the U.S. Preventive Services Task
11    Force A and B recommendations.
12    Section 70. Illinois Wellness Fund governance.
13    (a) The Illinois Wellness Fund shall be governed by a
14multi-sector Advisory Council for Health and Wellness, with
15administration by the Department of Public Health and
16Department of Healthcare and Family Services as described
17below. The Advisory Council for Health and Wellness shall be
18established by May 31, 2016 and be comprised of:
19        (A) one representative from each of the following
20    Departments: the Department of Public Health, the
21    Department of Human Services, the State Board of Education,
22    the Department on Aging, the Department of Healthcare and
23    Family Services, the Department of Transportation, and the
24    Department of Agriculture, appointed by the Director or
25    Secretary of the respective Department;



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1        (B) one obesity prevention advocate representing a
2    statewide coalition working on reducing obesity through
3    policy, systems, and environmental changes, appointed by
4    the Governor;
5        (C) one school superintendent, appointed by the
6    Governor;
7        (D) one physical education or health teacher
8    representing an association that represents physical
9    education and health teachers, appointed by the Governor;
10        (E) one oral health advocate representing a statewide
11    coalition or organization working to promote oral health,
12    appointed by the Governor;
13        (F) one representative of a statewide organization
14    focusing on chronic disease prevention, appointed by the
15    Governor;
16        (G) one representative of an organization or coalition
17    focusing on active transportation, appointed by the
18    Governor;
19        (H) one representative of an organization or coalition
20    focusing on employer wellness initiatives, appointed by
21    the Governor;
22        (J) one person representing access to healthy foods
23    initiatives, appointed by the Governor;
24        (K) one person representing community-based obesity
25    prevention programs, appointed by the Governor;
26        (L) one representative of an association representing



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1    hospitals across the State, appointed by the Governor;
2        (M) one person representing health departments in the
3    central and southern regions of the State and one person
4    representing health departments in the northern region of
5    the State, appointed by the Governor;
6        (N) one representative of an association representing
7    public health practitioners, appointed by the Governor;
8        (O) one representative of an organization representing
9    pediatricians in the State, appointed by the Governor;
10        (P) one representative of an organization representing
11    primary care providers in the State, appointed by the
12    Governor;
13        (Q) one dietician representing an association
14    representing dieticians in the State, appointed by the
15    Governor;
16        (R) two people representing community based healthy
17    eating-active living coalitions, appointed by the
18    Governor;
19        (S) two people representing communities of color or
20    communities that are disproportionately impacted by
21    obesity, appointed by the Governor; and
22        (T) four members of the General Assembly, one appointed
23    by each of the following: the Speaker and Minority Leader
24    of the Illinois House of Representatives and the President
25    and Minority Leader of the Illinois Senate.
26    (b) The Advisory Council for Health and Wellness shall have



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1the following powers and duties:
2        (A) to review and make recommendations to Department of
3    Public Health on fund allocation categories every 3 years
4    based on an assessment of the State's current conditions
5    and needs related to chronic disease prevention and the
6    results of the Act evaluation report;
7        (B) to develop and implement a request for proposal
8    (RFP) process for allocating the Illinois Wellness Fund
9    moneys via grants to eligible entities across the State
10    each year (or via multi-year grants);
11        (C) oversight of the request for proposals process,
12    including selection of eligible entities to receive funds,
13    selection of a recommended entity that can complete the
14    evaluation of the Act, and submission of funding
15    recommendations to the Department of Public Health for
16    funding for eligible entities for initiatives as described
17    in Section 60 within 120 days of the start of the fiscal
18    year;
19        (D) to annually receive and review the evaluation
20    progress report and Medicaid services, costs, and savings
21    report related to this Act; and
22        (E) to submit a report to the General Assembly every 3
23    years on the allocation of the funds and summary results of
24    the impact evaluation of the Illinois Wellness Fund and the
25    tax imposed under this Act.



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1    Section 75. Rulemaking. No later than April 30, 2016, the
2Department of Public Health shall adopt rules for the
3allocation of Illinois Wellness Fund moneys for community
4prevention, pursuant to Section 60. No later than April 30,
52016, the Department of Healthcare and Family Services shall
6adopt rules for the allocation and distribution of Wellness
7Fund moneys to support prevention in the Medicaid program
8pursuant to Section 65. No later than December 31, 2015, the
9Department of Revenue shall adopt rules to implement the
10provisions of this Act related to the implementation,
11collection, and deposition of the tax, so that taxes will be
12collected beginning January 1, 2016.
13    Section 97. Severability. The provisions of this Act are
14severable under Section 1.31 of the Statute on Statutes.
15    Section 200. The Illinois Independent Tax Tribunal Act of
162012 is amended by changing Section 1-45 as follows:
17    (35 ILCS 1010/1-45)
18    Sec. 1-45. Jurisdiction of the Tax Tribunal.
19    (a) Except as provided by the Constitution of the United
20States, the Constitution of the State of Illinois, or any
21statutes of this State, including, but not limited to, the
22State Officers and Employees Money Disposition Act, the Tax
23Tribunal shall have original jurisdiction over all



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1determinations of the Department reflected on a Notice of
2Deficiency, Notice of Tax Liability, Notice of Claim Denial, or
3Notice of Penalty Liability issued under the Illinois Income
4Tax Act, the Use Tax Act, the Service Use Tax Act, the Service
5Occupation Tax Act, the Retailers' Occupation Tax Act, the
6Cigarette Tax Act, the Cigarette Use Tax Act, the Tobacco
7Products Tax Act of 1995, the Hotel Operators' Occupation Tax
8Act, the Motor Fuel Tax Law, the Automobile Renting Occupation
9and Use Tax Act, the Coin-Operated Amusement Device and
10Redemption Machine Tax Act, the Gas Revenue Tax Act, the Water
11Company Invested Capital Tax Act, the Telecommunications
12Excise Tax Act, the Telecommunications Infrastructure
13Maintenance Fee Act, the Public Utilities Revenue Act, the
14Electricity Excise Tax Law, the Aircraft Use Tax Law, the
15Watercraft Use Tax Law, the Gas Use Tax Law, or the Uniform
16Penalty and Interest Act, or the Healthy Eating Active Living
17(HEAL) Act. Except with respect to the Healthy Eating Active
18Living (HEAL) Act, jurisdiction Jurisdiction of the Tax
19Tribunal is limited to Notices of Tax Liability, Notices of
20Deficiency, Notices of Claim Denial, and Notices of Penalty
21Liability where the amount at issue in a notice, or the
22aggregate amount at issue in multiple notices issued for the
23same tax year or audit period, exceeds $15,000, exclusive of
24penalties and interest. In notices solely asserting either an
25interest or penalty assessment, or both, the Tax Tribunal shall
26have jurisdiction over cases where the combined total of all



SB1584- 32 -LRB099 07654 HLH 28759 b

1penalties or interest assessed exceeds $15,000.
2    (b) Except as otherwise permitted by this Act and by the
3Constitution of the State of Illinois or otherwise by State
4law, including, but not limited to, the State Officers and
5Employees Money Disposition Act, no person shall contest any
6matter within the jurisdiction of the Tax Tribunal in any
7action, suit, or proceeding in the circuit court or any other
8court of the State. If a person attempts to do so, then such
9action, suit, or proceeding shall be dismissed without
10prejudice. The improper commencement of any action, suit, or
11proceeding does not extend the time period for commencing a
12proceeding in the Tax Tribunal.
13    (c) The Tax Tribunal may require the taxpayer to post a
14bond equal to 25% of the liability at issue (1) upon motion of
15the Department and a showing that (A) the taxpayer's action is
16frivolous or legally insufficient or (B) the taxpayer is acting
17primarily for the purpose of delaying the collection of tax or
18prejudicing the ability ultimately to collect the tax, or (2)
19if, at any time during the proceedings, it is determined by the
20Tax Tribunal that the taxpayer is not pursuing the resolution
21of the case with due diligence. If the Tax Tribunal finds in a
22particular case that the taxpayer cannot procure and furnish a
23satisfactory surety or sureties for the kind of bond required
24herein, the Tax Tribunal may relieve the taxpayer of the
25obligation of filing such bond, if, upon the timely application
26for a lien in lieu thereof and accompanying proof therein



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1submitted, the Tax Tribunal is satisfied that any such lien
2imposed would operate to secure the assessment in the manner
3and to the degree as would a bond. The Tax Tribunal shall adopt
4rules for the procedures to be used in securing a bond or lien
5under this Section.
6    (d) If, with or after the filing of a timely petition, the
7taxpayer pays all or part of the tax or other amount in issue
8before the Tax Tribunal has rendered a decision, the Tax
9Tribunal shall treat the taxpayer's petition as a protest of a
10denial of claim for refund of the amount so paid upon a written
11motion filed by the taxpayer.
12    (e) The Tax Tribunal shall not have jurisdiction to review:
13        (1) any assessment made under the Property Tax Code;
14        (2) any decisions relating to the issuance or denial of
15    an exemption ruling for any entity claiming exemption from
16    any tax imposed under the Property Tax Code or any State
17    tax administered by the Department;
18        (3) a notice of proposed tax liability, notice of
19    proposed deficiency, or any other notice of proposed
20    assessment or notice of intent to take some action;
21        (4) any action or determination of the Department
22    regarding tax liabilities that have become finalized by
23    law, including but not limited to the issuance of liens,
24    levies, and revocations, suspensions, or denials of
25    licenses or certificates of registration or any other
26    collection activities;



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1        (5) any proceedings of the Department's informal
2    administrative appeals function; and
3        (6) any challenge to an administrative subpoena issued
4    by the Department.
5    (f) The Tax Tribunal shall decide questions regarding the
6constitutionality of statutes and rules adopted by the
7Department as applied to the taxpayer, but shall not have the
8power to declare a statute or rule unconstitutional or
9otherwise invalid on its face. A taxpayer challenging the
10constitutionality of a statute or rule on its face may present
11such challenge to the Tax Tribunal for the sole purpose of
12making a record for review by the Illinois Appellate Court.
13Failure to raise a constitutional issue regarding the
14application of a statute or regulations to the taxpayer shall
15not preclude the taxpayer or the Department from raising those
16issues at the appellate court level.
17(Source: P.A. 97-1129, eff. 8-28-12; 98-463, eff. 8-16-13.)
18    Section 990. The State Finance Act is amended by adding
19Section 5.866 as follows:
20    (30 ILCS 105/5.866 new)
21    Sec. 5.866. The Illinois Wellness Fund.
22    Section 999. Effective date. This Act takes effect July 1,