H 3194 General Bill, By Rice, E.H. Pitts and Clark
 A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION
 12-21-625 SO AS TO IMPOSE AN ADDITIONAL LICENSE TAX ON EACH CIGARETTE SUBJECT
 TO THE LICENSE TAX ON CIGARETTES IN AN AMOUNT EQUAL TO 1.5 CENTS ON EACH
 CIGARETTE, TO ESTABLISH THE HEALTH CARE AND PREVENTION FUND TO RECEIVE THE
 REVENUE OF THIS TAX AND PROVIDE FOR THE USE OF THIS FUND FOR PUBLIC HEALTH
 PURPOSES, DESIGNATING CERTAIN AGENCIES AND PROGRAMS AS RECIPIENTS, INCLUDING
 THE MEDICAID EXPANSION FUND TO RECEIVE FUNDING TO REPLACE HOSPITAL TAX, AND TO
 PROVIDE FOR THE COLLECTION AND ENFORCEMENT OF THIS ADDITIONAL TAX; TO AMEND
 SECTION 44-6-155, RELATING TO THE MEDICAID EXPANSION FUND, SO AS TO INCLUDE
 WITHIN THE FUND THE TAX IMPOSED BY SECTION 12-21-625; AND TO REPEAL ARTICLE
 11, CHAPTER 23, TITLE 12, RELATING TO THE INDIGENT HEALTH CARE TAX ON
 HOSPITALS.

   12/22/04  House  Prefiled
   12/22/04  House  Referred to Committee on Ways and Means
   01/11/05  House  Introduced and read first time HJ-120
   01/11/05  House  Referred to Committee on Ways and Means HJ-121
   05/24/05  House  Member(s) request name added as sponsor: Clark

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-21-625 SO AS TO IMPOSE AN ADDITIONAL LICENSE TAX ON EACH CIGARETTE SUBJECT TO THE LICENSE TAX ON CIGARETTES IN AN AMOUNT EQUAL TO 1.5 CENTS ON EACH CIGARETTE, TO ESTABLISH THE HEALTH CARE AND PREVENTION FUND TO RECEIVE THE REVENUE OF THIS TAX AND PROVIDE FOR THE USE OF THIS FUND FOR PUBLIC HEALTH PURPOSES, DESIGNATING CERTAIN AGENCIES AND PROGRAMS AS RECIPIENTS, INCLUDING THE MEDICAID EXPANSION FUND TO RECEIVE FUNDING TO REPLACE HOSPITAL TAX, AND TO PROVIDE FOR THE COLLECTION AND ENFORCEMENT OF THIS ADDITIONAL TAX; TO AMEND SECTION 44-6-155, RELATING TO THE MEDICAID EXPANSION FUND, SO AS TO INCLUDE WITHIN THE FUND THE TAX IMPOSED BY SECTION 12-21-625; AND TO REPEAL ARTICLE 11, CHAPTER 23, TITLE 12, RELATING TO THE INDIGENT HEALTH CARE TAX ON HOSPITALS.

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)    There is imposed a surtax on cigarettes subject to the tax imposed pursuant to Section 12-21-620(1) in an amount equal to 1.5 cents on each cigarette.

(B)    Notwithstanding any other provision of law providing for the crediting of the revenues by license or other taxes, the revenue of the surtax imposed by this section must be credited to the Health Care and Prevention Fund established pursuant to subsection (C) and used only for the purposes prescribed in subsection (C).

(C)(1)    There is created the Health Care and Prevention Fund into which must be deposited funds collected pursuant to subsection (A). The fund must be separate and distinct from the general fund and must be used only for the purposes prescribed in this subsection. Earnings on investments from this fund must remain part of the separate fund and must not be deposited in the general fund.

(2)    Monies in the fund must be used as follows:

(a)    the first forty-nine and one half million dollars of revenue from the surtax must be used to replace the tax on hospitals for indigent health care as required pursuant to Article 11, Chapter 23, Title 12 of the 1976 Code. These funds must be deposited into the Medicaid Expansion Fund as provided in Section 12-23-840.

(b)    the next four million dollars of revenue remaining after the expenditures in subitem (a) is designated for the Department of Health and Environmental Control solely for funding of grants dedicated for community agencies and organizations for 'Healthy People 2010', the promotion of public health, and targeted only toward the following objectives:

(i)            increasing the proportion of adults and adolescents participating in exercise;

(ii)        reducing the proportion of obese adults;

(iii)        reducing cigarette use by adults and adolescents;

(iv)        increasing the proportion of adolescents who do not use alcohol or illicit drugs;

(v)        reducing the proportion of adults engaging in the 'binging' use of alcoholic beverages;

(vi)        reducing motor vehicle fatalities;

(vii)        reducing homicides;

(viii)    increasing the proportion of young children who receive vaccinations and immunizations;

(ix)        increasing the proportion of noninstitutionalized adults, sixty-five years of age and older, who receive vaccinations and immunizations;

(x)        increasing the proportion of noninstitutionalized adults, sixty-five years of age and older, who have ever been vaccinated against pneumococcal disease; and

(xi)    increasing the number of pregnant women who begin prenatal care in the first trimester of pregnancy.

(c)    the next nine million dollars of revenue is designated for the Department of Disabilities and Special Needs;

(d)    the next ten million five hundred thousand dollars of revenue is designated for the Department of Mental Health;

(e)    any remaining revenue collected pursuant to this section must be used by the Department of Health and Human Services as the director determines.

(D)    Monies must be transferred by the State Treasurer upon written request and justification from an authorized official for the purposes prescribed in subsection (C).

(E)    For all purposes of reporting, payment, collection, and enforcement, the surtax imposed by this section is deemed to be imposed pursuant to Section 12-21-620(1)."

SECTION    2.    Section 44-6-155(A)(2) of the 1976 Code is amended to read:

"(2)    collected pursuant to Section Sections 12-21-625 and 2-23-810; and"

SECTION    3.    Article 11, Chapter 23, Title 12 of the 1976 Code is repealed.

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