Bill 3660

                    Current Status

Introducing Body:               House
Bill Number:                    3660
Primary Sponsor:                Carnell
Committee Number:               30
Type of Legislation:            GB
Subject:                        Medicaid Health Care Fund
Residing Body:                  House
Current Committee:              Ways and Means
Computer Document Number:       JIC/5302.HC
Introduced Date:                Mar 07, 1991
Last History Body:              House
Last History Date:              Mar 07, 1991
Last History Type:              Introduced, read first time,
                                referred to Committee
Scope of Legislation:           Statewide
All Sponsors:                   Carnell
                                White
                                P. Harris
                                D. Williams
                                Felder
                                Whipper
Type of Legislation:            General Bill

 Bill  Body    Date          Action Description              CMN
 ----  ------  ------------  ------------------------------  ---
 3660  House   Mar 07, 1991  Introduced, read first time,    30
                             referred to Committee

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-21-625 SO AS TO ESTABLISH THE MEDICAID HEALTH CARE FUND ADMINISTERED BY THE STATE HEALTH AND HUMAN SERVICES FINANCE COMMISSION FOR THE PURPOSE OF MATCHING FEDERAL FUNDS FOR MEDICAID PROGRAM SERVICES AND TO PRODUCE REVENUES FOR THE FUND BY A USER FEE EQUAL TO TWO AND ONE-HALF MILLS ON CIGARETTES MADE OF TOBACCO OR TOBACCO SUBSTITUTES.

Whereas, fifty thousand studies in the last twenty-five years have documented the risk of tobacco; and

Whereas, cigarette smoking has been linked to lung cancer, emphysema, oral and throat cancer, and heart disease; and

Whereas, smokeless tobacco has been linked to both oral cancer and tooth loss; and

Whereas, parents who smoke force their children to become passive smokers, thus causing three to seven percent deficit in lung growth; and

Whereas, of all cancer deaths thirty percent are related to smoking; and

Whereas, smokers have a seventy percent greater risk of heart disease than nonsmokers; and

Whereas, the cost of treating smokers with smoking related illnesses is a large percentage of the State's health care costs; and

Whereas, numerous citizens receiving benefits under the state Medicaid program are smokers; and

Whereas, South Carolina has one of the lowest cigarette taxes in the country; and

Whereas, health care costs are of serious concern to the General Assembly. Now, therefore,

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Article 5, Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Section 12-21-625. (A) In addition to tax on cigarettes made of tobacco and tobacco substitutes imposed pursuant to Section 12-21-620(5), there is imposed a user fee equal to two and one-half mills on cigarettes made of tobacco or tobacco substitutes which must be paid and collected in the same manner that the tax imposed pursuant to Section 12-21-620(5) is paid and collected.

(B) There is established the Medicaid Health Care Fund, to be administered by the State Health and Human Services Finance Commission. The proceeds of this fund may be used only for the purpose of matching federal funds for providing Medicaid program services. Revenues from the user fee imposed pursuant to subsection (A) of this section must be credited to this fund."

SECTION 2. This act takes effect on the first day of the fourth month following approval by the Governor.