H 3152 General Bill, By Agnew, Cobb-Hunter, Jennings, Littlejohn, Cotty, McLeod, 
Miller, Branham, Funderburk, Govan, Hodges, Vick, Ott, Bales, Sellers, 
Alexander, Bowers and Moss
 A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 11
 TO CHAPTER 6, TITLE 44 SO AS TO ENACT THE "SMALL BUSINESS HEALTH INSURANCE
 PREMIUM ASSISTANCE ACT" AND TO ESTABLISH THE SMALL BUSINESS HEALTH INSURANCE
 PREMIUM ASSISTANCE PROGRAM WITHIN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES
 TO PROVIDE HEALTH INSURANCE PREMIUM ASSISTANCE TO SMALL BUSINESSES FOR
 EMPLOYEES WHO ARE AT OR UNDER TWO HUNDRED PERCENT OF THE FEDERAL POVERTY
 LEVEL, TO ESTABLISH ELIGIBILITY CRITERIA FOR SMALL BUSINESSES TO PARTICIPATE
 IN THE PROGRAM, TO REQUIRE ELIGIBLE EMPLOYEES TO CONTRIBUTE UP TO FIFTEEN
 PERCENT OF THE PREMIUM COST, TO REQUIRE THE DEPARTMENT TO PLACE CAPS ON THE
 NUMBER OF EMPLOYEES THAT MAY ENROLL IN THE PROGRAM SO THAT NO MORE FUNDS ARE
 EXPENDED THAN ARE AVAILABLE FOR THIS PROGRAM FROM THE MEDICAID MATCH FUND, TO
 PROVIDE THAT THIS PROGRAM MUST BE FUNDED FROM A PORTION OF AN ADDITIONAL 1.6
 CENT PER CIGARETTE LICENSE TAX, WHICH MUST BE ADJUSTED ANNUALLY BASED ON THE
 CONSUMER PRICE INDEX, AND TO DIRECT THE DEPARTMENT TO APPLY FOR A MEDICAID
 WAIVER TO IMPLEMENT THIS PROGRAM; TO PROVIDE THAT THE DEPARTMENT SHALL PROVIDE
 MEDICAID COVERAGE TO CHILDREN EIGHTEEN YEARS OF AGE AND YOUNGER WHOSE FAMILY
 INCOMES DO NOT EXCEED TWO HUNDRED PERCENT OF THE FEDERAL POVERTY LEVEL; TO
 CREATE THE MEDICAID MATCH FUND INTO WHICH A PORTION OF THE ADDITIONAL
 CIGARETTE TAX MUST BE DEPOSITED; AND TO ADD SECTION 12-21-630 SO AS TO PROVIDE
 FOR AN ADDITIONAL 1.6 CENT LICENSE TAX ON EACH CIGARETTE TO FUND THE SMALL
 BUSINESS HEALTH INSURANCE PREMIUM PROGRAM AND TO PROVIDE FOR THE DISTRIBUTION
 OF THE REMAINING PORTION OF THIS ADDITIONAL TAX TO THE DEPARTMENT OF HEALTH
 AND ENVIRONMENTAL CONTROL AND THE DEPARTMENT OF AGRICULTURE.

   12/20/06  House  Prefiled
   12/20/06  House  Referred to Committee on Ways and Means
   01/09/07  House  Introduced and read first time HJ-85
   01/09/07  House  Referred to Committee on Ways and Means HJ-86
   01/11/07  House  Member(s) request name added as sponsor: Cotty
   01/16/07  House  Member(s) request name added as sponsor: McLeod,
                     Miller, Branham, Funderburk
   01/24/07  House  Member(s) request name added as sponsor: Govan,
                     Hodges, Vick, Ott, Bales, Sellers, Alexander, Bowers
   01/25/07  House  Member(s) request name added as sponsor: Moss

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 11 TO CHAPTER 6, TITLE 44 SO AS TO ENACT THE "SMALL BUSINESS HEALTH INSURANCE PREMIUM ASSISTANCE ACT" AND TO ESTABLISH THE SMALL BUSINESS HEALTH INSURANCE PREMIUM ASSISTANCE PROGRAM WITHIN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO PROVIDE HEALTH INSURANCE PREMIUM ASSISTANCE TO SMALL BUSINESSES FOR EMPLOYEES WHO ARE AT OR UNDER TWO HUNDRED PERCENT OF THE FEDERAL POVERTY LEVEL, TO ESTABLISH ELIGIBILITY CRITERIA FOR SMALL BUSINESSES TO PARTICIPATE IN THE PROGRAM, TO REQUIRE ELIGIBLE EMPLOYEES TO CONTRIBUTE UP TO FIFTEEN PERCENT OF THE PREMIUM COST, TO REQUIRE THE DEPARTMENT TO PLACE CAPS ON THE NUMBER OF EMPLOYEES THAT MAY ENROLL IN THE PROGRAM SO THAT NO MORE FUNDS ARE EXPENDED THAN ARE AVAILABLE FOR THIS PROGRAM FROM THE MEDICAID MATCH FUND, TO PROVIDE THAT THIS PROGRAM MUST BE FUNDED FROM A PORTION OF AN ADDITIONAL 1.6 CENT PER CIGARETTE LICENSE TAX, WHICH MUST BE ADJUSTED ANNUALLY BASED ON THE CONSUMER PRICE INDEX, AND TO DIRECT THE DEPARTMENT TO APPLY FOR A MEDICAID WAIVER TO IMPLEMENT THIS PROGRAM; TO PROVIDE THAT THE DEPARTMENT SHALL PROVIDE MEDICAID COVERAGE TO CHILDREN EIGHTEEN YEARS OF AGE AND YOUNGER WHOSE FAMILY INCOMES DO NOT EXCEED TWO HUNDRED PERCENT OF THE FEDERAL POVERTY LEVEL; TO CREATE THE MEDICAID MATCH FUND INTO WHICH A PORTION OF THE ADDITIONAL CIGARETTE TAX MUST BE DEPOSITED; AND TO ADD SECTION 12-21-630 SO AS TO PROVIDE FOR AN ADDITIONAL 1.6 CENT LICENSE TAX ON EACH CIGARETTE TO FUND THE SMALL BUSINESS HEALTH INSURANCE PREMIUM PROGRAM AND TO PROVIDE FOR THE DISTRIBUTION OF THE REMAINING PORTION OF THIS ADDITIONAL TAX TO THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL AND THE DEPARTMENT OF AGRICULTURE.

Whereas, recognizing that many South Carolinians do not have health care benefits or coverage, that many small businesses cannot afford to provide health care benefits to their employees, and that, under federal law, barriers exist to providing Medicaid benefits to the uninsured, the South Carolina General Assembly finds that lowering the number of uninsured South Carolinians, assisting businesses in their ability to afford health care benefits and coverage for their employees and eliminating barriers to providing health coverage to eligible enrollees under federal law would greatly benefit all South Carolinians. Now, therefore,

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

SECTION    1.    Chapter 6, Title 44 of the 1976 Code is amended by adding:

"Article 11

Section 44-6-1400.    This article may be cited as the 'South Carolina Small Business Health Insurance Premium Assistance Act'.

Section 44-6-1410.    (A)    There is established the Small Business Health Insurance Premium Assistance Program within the Department of Health and Human Services. The purpose of this program is to provide health insurance premium assistance to small businesses for all employees and employee spouses who are at or under two hundred percent of the federal poverty level.

(B)    To be eligible to participate in this program, a small business owner must:

(1)    employ seventy-five or fewer employees;

(2)    provide health insurance to all employees who are employed the requisite number of hours pursuant to the health insurance policy of the small business and agree to maintain this insurance for the next twelve months;

(3)    contribute twenty five percent of the premium cost for those employees eligible for the premium assistance program; and

(4)    contribute a minimum of twenty five percent of the premiums for those employees not eligible for the premium assistance program.

(C)    An employee who qualifies pursuant to subsection (A) to participate in this program shall contribute, on a sliding fee basis determined by income, as established by the department in regulation, up to fifteen percent of the premium cost.

(D)    The department shall apply to the Centers for Medicaid and Medicare Services for a waiver to carry out the provisions of this section.

(E)    Funding for this program must be provided from those funds deposited in the Medicaid Match Fund created pursuant to Section 44-6-1430. However, the department shall place appropriate caps on the number of employees that may enroll in the Small Business Health Insurance Premium Program so that no more funds are expended for this program than are available in the Medicaid Matching Fund after funds are expended for the expansion of Medicaid funding pursuant to Section 44-6-1420.

Section 44-6-1420.    The South Carolina Department of Health and Human Services shall expand coverage under the state Medicaid program to children eighteen years of age and under whose family incomes do not exceed two hundred percent of the federal poverty level.

Section 44-6-1430.    (A)    There is created in the State Treasury the Medicaid Match Fund that is separate and distinct from the general fund of the State and all other funds. Revenue collected pursuant to Section 12-21-630 must be credited to the Medicaid Match Fund and used by the Department of Health and Human Services as the state match for federal Medicaid funding for the Health Insurance Premium Assistance Program provided for in Section 44-6-1410 and for the expansion of Medicaid coverage pursuant to Section 44-6-1420.

(B)    Monies in the fund are supplementary and may not be used to replace recurring monies appropriated from the general fund of the State or from other funds for the support of the Medicaid program. This fund is exempt from reductions imposed by law as a result of general fund shortfalls. Earnings on fund revenues must be credited to the fund and used for the same purposes. Revenues in the fund not expended during a fiscal year are carried forward to the succeeding fiscal year and must be used for the same purposes."

SECTION    2.    Article 5, Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Section 12-21-630.    (A)    In addition to the license tax imposed pursuant to Section 12-21-620(1), there is imposed on all cigarettes made of tobacco or any substitute for tobacco an additional license tax equal to 1.6 cents on each cigarette. Effective July 1, 2007, and annually thereafter, the Department of Revenue shall adjust the additional tax imposed pursuant to this section by the percentage of increase, if any, in the Consumer Price Index occurring in the last completed calendar year.

(B)    The additional license tax imposed pursuant to subsection (A) must be reported, paid, collected, and enforced in the same manner as the license tax imposed pursuant to Section 12-21-620(1).

(C)    Of monies collected pursuant to this section:

(1)    3 million dollars must be credited to the Department of Health and Environmental Control to be divided equally between maternal and child health and smoking cessation and youth smoking prevention programs;

(2)    2 million dollars must be credited to the South Carolina Department of Agriculture for programs to market South Carolina grown agricultural products; and

(3)    the remaining funds must be deposited into the Medicaid Match Fund created pursuant to Section 44-6-1430."

SECTION    3.    Implementation of the provisions of Article 11, Chapter 6, Title 44 of the 1976 Code, as added by Section 1 of this act, are contingent upon the availability of funding, with Section 44-6-1420 having priority in receipt of such funding for implementation of the provisions of that section.

SECTION    4.    This act takes effect upon approval by the Governor.