Tobacco Health Tax Act of 1993 - Amends the Internal Revenue Code to increase the excise tax on the following tobaccos and tobacco-related products: (1) cigars; (2) cigarettes (including an additional tax on packs containing fewer than 20 cigarettes); (3) cigarette papers and tubes; and (4) smokeless and pipe tobacco. Imposes a new tax on cigarette tobacco. Provides, for each calendar year after 1993, an inflation adjustment of the tobacco tax rates.
Provides a floor stock tax on the following tobaccos and tobacco products manufactured in or imported into the United States which are removed from stocks before January 1, 1994: (1) cigars; (2) cigarettes (including packs containing fewer than 20 cigarettes); (3) cigarette papers and tubes; (4) snuff; and (5) chewing, pipe, and cigarette tobacco.
Establishes in the Treasury the Tobacco Health Tax Trust Fund which shall consist of funds resulting from tobacco tax increases under this Act. Outlines authorized expenditures from the Fund, including the use of 80 percent of such proceeds for Medicaid (title XIX of the Social Security Act) eligibility and payment expansions. Outlines actions authorized to be taken by the Secretary of Health and Human Services in connection with such expansions, including the authority to require an increase in Medicaid payment rates to hospitals and physicians. Provides conforming provisions imposing a floor on Medicaid payment levels for inpatient hospital services and physicians' services.
Authorizes expenditures from the Fund for: (1) grants to State and local governments to compensate for any reduction in revenues to such governments caused by the Federal tobacco tax increase under this Act; (2) specified health promotion and illness prevention programs; and (3) public education and other activities to discourage the use of tobacco products, especially among youths.
Authorizes the Secretary of Agriculture to make certain offset payments to tobacco producers if the domestic consumption of tobacco declines by at least five percent of that calculated in 1993. Directs the Secretary to encourage such producers to convert their operations to alternative crops. Authorizes the Secretary to make grants to States submitting alternative crop conversion plans. Provides funding for such alternative crop program through the Fund.
[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1246 Introduced in House (IH)]
103d CONGRESS
1st Session
H. R. 1246
To amend the Internal Revenue Code of 1986 to increase excise taxes on
cigarettes and other tobacco and tobacco-related products and to use
the increased revenues to expand Medicaid eligibility, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 8, 1993
Mr. Andrews of Texas (for himself, Mr. Stark, Mr. Levin, Mr. McDermott,
Mr. Synar, and Mr. Huffington) introduced the following bill; which was
referred jointly to the Committees on Ways and Means, Energy and
Commerce, and Agriculture
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to increase excise taxes on
cigarettes and other tobacco and tobacco-related products and to use
the increased revenues to expand Medicaid eligibility, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
(a) Short Title.--This Act may be cited as the ``Tobacco Health Tax
Act of 1993''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
SEC. 2. INCREASE IN EXCISE TAXES ON TOBACCO PRODUCTS.
(a) Cigars.--Subsection (a) of section 5701 is amended--
(1) by striking ``$1.125 cents per thousand (93.75 cents
per thousand on cigars removed during 1991 or 1992)'' in
paragraph (1) and inserting ``$4.69 per thousand'', and
(2) by striking ``equal to'' and all that follows in
paragraph (2) and inserting ``equal to 53.17 percent of the
price for which sold but not more than $120 per thousand.''
(b) Cigarettes.--Subsection (b) of section 5701 is amended--
(1) by striking ``$12 per thousand ($10 per thousand on
cigarettes removed during 1991 or 1992)'' in paragraph (1) and
inserting ``$50.00 per thousand'',
(2) by striking ``$25.20 per thousand ($21 per thousand on
cigarettes removed during 1991 or 1992)'' in paragraph (2) and
inserting ``$105 per thousand'', and by adding at the end
thereof the following new paragraph:
``(3) Additional tax on packs containing fewer than 20
cigarettes.--On any pack of cigarettes containing fewer than 20
cigarettes, the excess of $1 over the tax imposed by paragraphs
(1) and (2) on the cigarettes in such pack.''
(c) Cigarette Papers.--Subsection (c) of section 5701 is amended by
striking ``0.75 cent (0.625 cent on cigarette papers removed during
1991 or 1992)'' and inserting ``3.18 cents''.
(d) Cigarette Tubes.--Subsection (d) of section 5701 is amended by
striking ``1.5 cents (1.25 cents on cigarette tubes removed during 1991
or 1992)'' and inserting ``6.25 cents''.
(e) Smokeless Tobacco.--Subsection (e) of section 5701 is amended--
(1) by striking ``36 cents (30 cents on snuff removed
during 1991 or 1992)'' in paragraph (1) and inserting ``$10'',
and
(2) by striking ``12 cents (10 cents on chewing tobacco
removed during 1991 or 1992)'' in paragraph (2) and inserting
``$4.80''.
(f) Pipe Tobacco.--Subsection (f) of section 5701 is amended by
striking ``67.5 cents (56.25 cents on pipe tobacco removed during 1991
or 1992)'' and inserting ``$2.82''.
(g) Imposition of Tax on Cigarette Tobacco.--
(1) In general.--Section 5701 of such Code is amended by
redesignating subsection (g) as subsection (h) and by inserting
after subsection (f) the following new subsection:
``(g) Cigarette Tobacco.--On cigarette tobacco, manufactured in or
imported into the United States, there shall be imposed a tax of $22.40
per pound (and a proportionate tax at the like rate on all fractional
parts of a pound).''
(2) Cigarette tobacco defined.--Section 5702 of such Code
is amended by adding at the end thereof the following new
subsection:
``(p) Cigarette tobacco.--The term `cigarette tobacco' means any
tobacco which, because of its appearance, type, packaging, or labeling,
is suitable for use and likely to offered to, or purchased by,
consumers as tobacco to be rolled into a cigarette.''
(3) Conforming amendments.--
(A) Subsection (c) of section 5702 of such Code is
amended by striking ``and pipe tobacco'' and inserting
``pipe tobacco, and cigarette tobacco''.
(B) Subsection (d) of section 5702 of such Code is
amended by striking ``or pipe tobacco'' and inserting
``pipe tobacco, or cigarette tobacco''.
(h) Inflation Adjustment of Tobacco Tax Rates.--Section 5701 is
amended by adding at the end thereof the following new subsection:
``(i) Inflation Adjustment.--In the case of articles removed in any
calendar year after 1993, each dollar amount contained in this
subsection shall be increased by an amount equal to--
``(1) such dollar amount, multiplied by
``(2) the greater of--
``(A) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the removal occurs by substituting `calendar year 1992'
for `calendar year 1989' in subparagraph (B) thereof,
or
``(B) the cost-of-living adjustment which would be
determined under subparagraph (A) if only changes in
the tobacco and smoking products component of the
Consumer Price Index (as defined in section 1(f)(5))
were taken into account.
If any increase determined under this subsection is not a multiple of
\1/4\ cent, such increase shall be rounded to the nearest \1/4\ cent.''
(i) Effective Date.--The amendments made by this section shall
apply with respect to articles removed after December 31, 1993.
(j) Floor Stock Taxes.--
(1) Imposition of tax.--On tax-increased articles
manufactured in or imported into the United States which are
removed before January 1, 1994, and held on such date for sale
by any person, there shall be imposed the following taxes:
(A) Small cigars.--On cigars, weighing not more
than 3 pounds per thousand, $3.565 per thousand.
(B) Large cigars.--On cigars weighing more than 3
pounds per thousand, 40.42 percent of the wholesale
price, but not more than $120 per thousand.
(C) Small cigarettes.--On cigarettes, weighing not
more than 3 pounds per thousand, $38 per thousand.
(D) Large cigarettes.--On cigarettes weighing more
than 3 pounds per thousand, $79.80 per thousand; except
that, if more than 6\1/2\ inches in length, they shall
be taxable at the rate prescribed for cigarettes
weighing not more than 3 pounds per thousand, counting
each 2\3/4\ inches, or fraction thereof, of the length
of each as one cigarette.
(E) Cigarette packs containing fewer than 20
cigarettes.--On any pack of cigarettes containing fewer
than 20 cigarettes, the excess of $1 over the sum of--
(i) the tax imposed by paragraphs (1) and
(2) of section 5701(a) of the Internal Revenue
Code of 1986, plus
(ii) the tax imposed by this subsection,
on the cigarettes in such pack.
(F) Cigarette papers.--On each book or set of
cigarette papers containing more than 25 papers, 2.43
cents for each 50 papers or fractional part thereof;
except that, if cigarette papers measure more than 6\1/
2\ inches in length, they shall be taxable at the rate
prescribed, counting each 2\3/4\ inches, or fraction
thereof, of the length of each as one cigarette paper.
(G) Cigarette tubes.--On cigarette tubes, 4.75
cents for each 50 tubes or fractional part thereof;
except that, if cigarette tubes measure more than 6\1/
2\ inches in length, they shall be taxable at the rate
prescribed, counting each 2\3/4\ inches, or fraction
thereof, of the length of each as one cigarette tube.
(H) Snuff.--On snuff, $9.64 per pound (and a
proportionate tax at the like rate on all fractional
parts of a pound).
(I) Chewing tobacco.--On chewing tobacco, $4.68 per
pound (and a proportionate tax at the like rate on all
fractional parts of a pound).
(J) Pipe tobacco.--On pipe tobacco, $2.145 per
pound (and a proportionate tax at the like rate on all
fractional parts of a pound).
(K) Cigarette tobacco.--On cigarette tobacco,
$22.40 per pound (and a proportionate tax at the like
rate on all fractional parts of a pound).
(2) Liability for tax and method of payment.--
(A) Liability for tax.--A person holding tax-
increased articles on January 1, 1994, to which any tax
imposed by paragraph (1) applies shall be liable for
such tax.
(B) Method of payment.--The tax imposed by
paragraph (1) shall be paid in such manner as the
Secretary shall prescribe by regulations.
(C) Time for payment.--The tax imposed by paragraph
(1) shall be paid on or before June 30, 1994.
(3) Tax-increased articles.--For purposes of this
subsection, the term ``tax-increased articles'' means tobacco
products (as defined by section 5702(c) of the Internal Revenue
Code of 1986, as amended by this Act), cigarette papers (as
defined by section 5702(f) of such Code), cigarette tubes (as
defined by section 5702(g) of such Code), and packs of
cigarettes containing fewer than 20 cigarettes.
(4) Other laws applicable.--All provisions of law,
including penalties, applicable with respect to the taxes
imposed by section 5701 of such Code shall, insofar as
applicable and not inconsistent with the provisions of this
subsection, apply to the floor stocks taxes imposed by
paragraph (1), to the same extent as if such taxes were imposed
by such section 5701.
SEC. 3. ESTABLISHMENT OF TOBACCO HEALTH TAX TRUST FUND.
(a) In General.--Subchapter A of chapter 98 (relating to trust fund
code) is amended by adding at the end thereof the following new
section:
``SEC. 9512. TOBACCO HEALTH TAX TRUST FUND.
``(a) Creation of Trust Fund.--There is established in the Treasury
of the United States a trust fund to be known as the `Tobacco Health
Tax Trust Fund', consisting of such amounts as may be appropriated or
credited to such Trust Fund as provided in this section or section
9602(b).
``(b) Transfers to Trust Fund.--
``(1) In general.--There is hereby appropriated to the
Tobacco Health Tax Trust Fund amounts equivalent to the
increase in net revenues received in the Treasury from the
Tobacco Health Tax Act of 1993 taxes.
``(2) Net revenues.--For purposes of paragraph (1), the
term `net revenues' means the amount estimated by the Secretary
based on the excess of--
``(A) the Tobacco Health Tax Act of 1993 taxes
received in the Treasury, over
``(B) the decrease in the tax imposed by chapter 1
resulting from such taxes.
``(3) Tobacco health tax act of 1993 taxes.--For purposes
of this subsection, the term `Tobacco Health Tax Act of 1993
taxes' means the taxes imposed by section 5701 which are
attributable to the amendments made by the Tobacco Health Tax
Act of 1993 and the taxes imposed by section 2(j) of such Act.
``(c) Expenditures From Trust Fund.--The following percentages of
the amounts appropriated or credited to the Tobacco Health Tax Trust
Fund shall be available, as provided in appropriation Acts, for the
following purposes:
``(1) 80 percent shall be available to make Federal
payments to States to carry out section 4 of the Tobacco Health
Tax Act of 1993;
``(2) 10 percent shall be available to make grants under
section 5 of such Act;
``(3) 4.5 percent shall be available for additional funding
under section 6 of such Act (relating to general health
prevention and health care);
``(4) 2.5 percent shall be available to provide for counter
advertising and tobacco preventive activities under section 7
of such Act; and
``(5) 3 percent shall be available under section 8 of such
Act to assist tobacco producers experiencing financial hardship
caused by increased excise taxes on tobacco products.''
(b) Clerical Amendment.--The table of sections for such subchapter
A is amended by adding at the end thereof the following new item:
``Sec. 9512. Tobacco Health Tax Trust
Fund.''
SEC. 4. MEDICAID ELIGIBILITY AND PAYMENT EXPANSIONS.
(a) Expansion of Medicaid Eligibility.--Subject to subsection (c)--
(1) the Secretary of Health and Human Services (in this
subsection referred to as the ``Secretary'') shall specify--
(A) a percentage (not to exceed 200 percent) that
shall apply under section 1902(z)(2)(A) of the Social
Security Act, and
(B) a maximum age (not to exceed 19 years) that
shall apply under section 1902(z)(2)(B) of such Act for
a fiscal year; and
(2) if the percentage specified under paragraph (1)(A) is
200 percent and the maximum age specified under paragraph
(1)(B) is 19 years of age, the Secretary shall specify a
percentage (not to exceed 200 percent) that shall apply under
section 1902(a)(2)(B) of such Act for the fiscal year.
(b) Authority To Require Increase in Medicaid Payment Rates to
Hospitals and Physicians.--Subject to subsection (c), the Secretary
may, in addition to specifying a percentages and a maximum age under
subsection (a)--
(1) specify a percent that shall apply for purposes of
subsection (e)(1)(A)(i), and
(2) specify a percent that shall apply for purposes of
section 1902(aa)(1) of the Social Security Act (as added by
subsection (e)(2)(A) of this section).
(c) Limitation on Total Increase.--The percentages and percents
under subsections (a) and (b) for a fiscal year shall be specified in a
manner so that the total amount of additional Federal expenditures in a
fiscal year resulting from this section (and the amendments made by
this section) does not exceed the amounts made available to carry out
this section under section 9512(c)(1) of the Internal Revenue Code of
1986 for the fiscal year.
(d) Conforming Amendments for Medicaid Eligibility Expansion.--
(1) Benefits for low-income individuals.--Section
1902(a)(10)(A)(i) of the Social Security Act (42 U.S.C.
1396a(a)(10)(A)(i)) is amended--
(A) by striking ``or'' at the end of subclause
(VI);
(B) by striking the semicolon at the end of
subclause (VII) and inserting ``, or''; and
(C) by adding at the end the following new
subclause:
``(VIII) who are described in
subsection (z)(1);''.
(2) Individuals described.--
(A) In general.--Section 1902 of such Act (42
U.S.C. 1396a) is amended by adding at the end the
following new subsection:
``(z)(1) Individuals described in this paragraph are--
``(A) women during pregnancy (and during the 60-day period
beginning on the last day of the pregnancy) or individuals who
have not attained the age specified by the Secretary under
section 4(a)(1)(B) of the Tobacco Health Tax Act of 1993, who
are not described in any of subclauses (I) through (VII) of
subsection (a)(10)(A)(i), and whose family income does not
exceed the income level described in paragraph (2)(A) for a
family of the size of the family; and
``(B) individuals not described in subparagraph (A) who
have not attained 65 years of age, who are not described in any
of subclauses (I) through (VII) of subsection (a)(10)(A)(i),
and whose family income does not exceed the income level
described in paragraph (2)(B) for a family of the size of the
family.
``(2)(A) The income level described in this subparagraph is the
percent, specified under section 4(a)(1)(A) of the Tobacco Health Tax
Act of 1993, of the official poverty line (as defined by the Office of
Management and Budget, and revised annually in accordance with section
673(2) of the Omnibus Budget Reconciliation Act of 1981) applicable to
a family of the size involved.
``(B) The income level described in this subparagraph is the
percent (if any), specified under section 4(a)(2) of the Tobacco Health
Tax Act of 1993, of the official poverty line (as defined by the Office
of Management and Budget, and revised annually in accordance with
section 673(2) of the Omnibus Budget Reconciliation Act of 1981)
applicable to a family of the size involved.
``(3) Notwithstanding subsection (a)(17), for individuals who are
eligible for medical assistance because of subsection
(a)(10)(A)(i)(VIII)--
``(A) no resource standard shall be applied;
``(B) the income standard to be applied is the appropriate
income standard established under paragraph (2); and
``(C) family income shall be determined in accordance with
the methodology that is not more restrictive than the
methodology employed under the State plan under part A or E of
title IV (except to the extent such methodology is inconsistent
with clause (D) of subsection (a)(17)), and costs incurred for
medical care or for any other type of remedial care shall not
be taken into account.
Any different treatment provided under this paragraph for such
individuals shall not, because of subsection (a)(17), require or permit
such treatment for other individuals.
``(4)(A) In the case of any State which is providing medical
assistance to its residents under a waiver granted under section 1115,
the Secretary shall require the State to provide medical assistance for
individuals described in paragraph (1) in the same manner as the State
would be required to provide such assistance for such individuals if
the State had in effect a plan approved under this title.
``(B) In the case of a State which is not one of the 50 States or
the District of Columbia, the State need not meet the requirement of
subsection (a)(10)(A)(i)(VIII) and, for purposes of paragraph (2)(A),
the State may substitute for the percentages provided under such
paragraph any percentages that are less than such percentages.
``(5) The Secretary may not require that an individual apply for
eligibility under subclauses (I) through (VII) of subsection
(a)(10)(A)(i) as a condition of being determined to be eligible for
medical assistance under this title as an individual described in
paragraph (1).''.
(B) Conforming amendment.--Section 1905(a) of such
Act (42 U.S.C. 1396d(a)) is amended--
(i) by striking ``or'' at the end of clause
(ix),
(ii) by adding ``or'' at the end of clause
(x), and
(iii) by inserting after clause (x) the
following new clause:
``(xi) individuals described in section
1902(z)(1),''.
(3) Restrictions on benefits provided.--Section 1902(a)(10)
of such Act (42 U.S.C. 1396a(a)(10)) is amended in the matter
following subparagraph (F)--
(A) by striking ``; and (XI) the making'' and
inserting ``, (XI) the making'';
(B) by striking ``and (XI) the medical'' and
inserting ``(XII) the medical''; and
(C) by striking the semicolon at the end and
inserting the following: `` and (XIII) the medical
assistance required to be made available to an
individual described in subsection (z)(1) shall not
include nursing facility services, home and community-
based services (as defined in section
1915(d)(5)(C)(i)), services in an intermediate care
facility for the mentally retarded, and community
supported living arrangements services;''.
(e) Conforming Provisions Imposing a Floor on Medicaid Payment
Levels for Inpatient Hospital Services and Physicians' Services.--
(1) Inpatient hospital services.--
(A) In general.--(i) A State plan under title XIX
of the Social Security Act shall not be considered to
meet the requirement of section 1902(a)(13)(A) of such
Act (insofar as it requires payments to hospitals for
inpatient hospital services that are reasonable and
adequate to meet the costs which must be incurred by
efficiently and economically operated facilities), as
of a calendar quarter, unless the State has submitted
to the Secretary of Health and Human Services, by not
later than the first date of such quarter, an amendment
to such plan that assures that, in the aggregate, the
amount of payments for inpatient hospital services
provided in subsection (d) hospitals (as defined in
section 1886(d)(1)(B) of such Act) under the plan is
not less than--
(I) in the case of services furnished
during fiscal year 1997, such percent as may be
specified under section 4(b)(1) of the Tobacco
Health Tax Act of 1993 (but not to exceed 80
percent, or, if greater, the percent specified
in clause (ii)) of the amount of payments for
such services that would be made under title
XVIII of such Act (without regard to any
deductible imposed under section 1813(a) of
such Act or any limitation on the coverage of
inpatient hospital services under such title)
for such services if covered under such title;
(II) in the case of services furnished
during fiscal year 1998, such percent specified
under section 4(b)(1) of the Tobacco Health Tax
Act of 1993 (not to exceed 85 percent or, if
greater, the percent specified in clause (ii))
of the amount of payments for such services
that would be made under title XVIII of such
Act (without regard to any deductible imposed
under section 1813(a) of such Act or any
limitation on the coverage of inpatient
hospital services under such title) for such
services if covered under such title; and
(III) in the case of services furnished
during any succeeding fiscal year, such percent
specified under section 4(b)(1) of the Tobacco
Health Tax Act of 1993 (not to exceed 90
percent) of the amount of payments for such
services that would be made under title XVIII
of such Act (without regard to any deductible
imposed under section 1813(a) of such Act or
any limitation on the coverage of inpatient
hospital services under such title) for such
services if covered under such title.
(ii) The percent specified in this clause is the
quotient of--
(I) the total payments made under the State
plan under title XIX of the Social Security Act
in fiscal year 1993 with respect to inpatient
hospital services, divided by
(II) the amount of payments for such
services that would be made under title XVIII
of such Act (without regard to any deductible
imposed under section 1813(a) of such Act or
any limitation on the coverage of inpatient
hospital services under such title) for such
services in such fiscal year if covered under
such title,
expressed as a percentage, or, if less, 90 percent.
(iii) In computing amounts under clause (i), the
Secretary shall adjust for differences in case mix,
volume, the age and disability of the populations
covered by the two programs, and other relevant factors
identified by the Secretary.
(B) Review.--The Secretary, by not later than 90
days after the date of submission of a plan amendment
under subparagraph (A), shall--
(i) review each such amendment for
compliance with the requirement of section
1902(a)(13)(A) of the Social Security Act; and
(ii) approve or disapprove each such
amendment.
If the Secretary disapproves such an amendment, the
State shall immediately submit a revised amendment
which meets such requirement.
(C) Collection of data.--The Secretary may provide
for such collection of data on payment for inpatient
hospital services as may be necessary to carry out this
paragraph.
(D) Nonwaivability.--The provisions of this
paragraph may not be waived by the Secretary.
(2) Physicians' services.--
(A) In general.--Section 1902 of the Social
Security Act (42 U.S.C. 1396a) is amended--
(i) in subsection (a)(13)--
(I) by striking ``and'' at the end
of subparagraph (E);
(II) by striking the semicolon at
the end of subparagraph (F) and
inserting ``; and''; and
(III) by adding at the end the
following new subparagraph:
``(G) for payment for physicians' services through
a methodology under which the amount of payment for
such services furnished during a calendar quarter is
not less than the amount specified in subsection
(aa);''; and
(ii) by adding at the end the following new
subsection:
``(aa)(1) For purposes of subsection (a)(13)(G), the amount
specified in this subsection is--
``(A) for physicians' services furnished during a calendar
quarter in fiscal year 1997, a percent specified under section
4(b)(2) of the Tobacco Health Tax Act of 1993 (not to exceed 60
percent or, if greater, the percent specified in paragraph (2))
of the applicable fee schedule amount established under section
1848 for services furnished in such year,
``(B) for physicians' services furnished during a calendar
quarter in fiscal year 1998, a percent specified under section
4(b)(2) of the Tobacco Health Tax Act of 1993 (but not to
exceed 70 percent or, if greater, the percent specified in
paragraph (2)) of the applicable fee schedule amount
established under section 1848 for services furnished in such
year, and
``(C) for physicians' services furnished during a calendar
quarter in a succeeding fiscal year, a percent specified under
section 4(b)(2) of the Tobacco Health Tax Act of 1993 (but not
to exceed 90 percent) of the applicable fee schedule amount
established under section 1848 for services furnished in such
year.
``(2) The percent specified in this paragraph is the quotient of--
``(A) the total payments made under the State plan under
title XIX of the Social Security Act in fiscal year 1993 for
physicians' services, divided by
``(B) the amount of payments for such services that would
be made under title XVIII of such Act (without regard to any
deductible or coinsurance) for such services in such fiscal
year if covered under such title,
expressed as a percentage, or, if less, 90 percent.''.
(B) Transmittal of payment information to states.--
Section 1848(i) of such Act (42 U.S.C. 1395w-4(i)) is
amended by adding at the end the following new
paragraph:
``(4) Transmittal of physician payment information to
states.--Not later than August 1 of 1996 (and of each year
thereafter), the Secretary shall transmit such information to
the States as is necessary to enable the States to carry out
the requirements of section 1902(a)(13)(G) of the Social
Security Act (as added by section 4(e)(2)(A) of the Tobacco
Health Tax Act of 1993).''.
(C) Relation to payments for obstetrical and
pediatric services.--Section 1926 of such Act (42
U.S.C. 1396r-7) is amended by adding at the end the
following new subsection:
``(e) Payment rates established under this section with respect to
services shall in no case be less than the minimum payment amounts
specified under section 1902(aa) with respect to such services. The
fact that payment amounts with respect to such services are consistent
with the payment rates required under such section shall not be the
basis for a determination that the payment amounts comply with the
requirements of this section.''.
(e) Full Federal Payment for Increased Costs.--Section 1903 of the
Social Security Act (42 U.S.C. 1396b) is amended by adding at the end
the following new subsection:
``(w)(1) Notwithstanding subsection (a), with respect to new
mandated expenditures (as defined in paragraph (2)) in a quarter,
instead of the amounts otherwise paid to a State under subsection (a)
for a quarter with respect to such expenditures, there shall be paid to
the State an amount equal to 100 percent of the amount of such
expenditures.
``(2) In this subsection, the term `new mandated expenditures'
means the sum of the following expenditures under the State plan during
a quarter:
``(A) The amount by which (i) the minimum amount of
expenditures for medical assistance for inpatient hospital
services (consistent with section 4(e)(1)(A) of the Tobacco
Health Tax Act of 1993), exceeds (ii) the amount of
expenditures for such assistance which the Secretary determines
would have been payable under the plan (as such plan was in
effect as of the date of the enactment of this subsection).
``(B) The amount by which (i) the minimum amount of
expenditures under the plan for medical assistance for
physicians' services (consistent with section 1902(a)(13)(G))
for the quarter, exceeds (ii) the amount of expenditures under
the plan for such assistance which the Secretary determines
would have been payable under the plan (as such plan was in
effect as of the date of the enactment of this subsection) for
the quarter.
``(C) The amount of expenditures for medical assistance
attributable to individuals with respect to whom the State plan
would not be required to provide such assistance but for the
amendments made by section 4(c) of the Tobacco Health Tax Act
of 1993.
``(D) The amount of expenses reasonably attributable to the
expenditures described in subparagraphs (A) through (C).''.
SEC. 5. STATE GRANTS TO REPLACE STATE AND LOCAL REVENUE LOSS DUE TO
FEDERAL TOBACCO TAX INCREASE.
With respect to the funds made available under section 9512(c)(2)
of the Internal Revenue Code of 1986, the Secretary of the Treasury
shall, by grant, allocate such funds among State and local governments
to compensate for any reduction in revenues to such governments which
such Secretary determines is attributable to the reduced consumption of
articles subject to tax under section 5701 of such Code by reason of
the amendments made by section 2 of this Act. In determining revenue
reduction, such Secretary shall take into account the presence of
military bases and international boundaries, among other factors.
SEC. 6. ADDITIONAL FUNDS FOR GENERAL HEALTH PREVENTION AND ACCESS TO
HEALTH CARE.
With respect to the funds made available under section 9512(c)(3)
of the Internal Revenue Code of 1986, the Secretary of Health and Human
Services shall, for the purpose of providing additional funds to carry
out the following programs, make such allocations as the Secretary
deems appropriate:
(1) Lead poisoning prevention.--The program under section
317A of the Public Health Service Act.
(2) Minority health promotion.--Programs under section 1707
of such Act.
(3) AIDS prevention.--Programs of the Centers for Disease
Control and Prevention under such Act to prevent infection with
the human immunodeficiency virus.
(4) Preventive health and health services block grant.--The
program under part A of title XIX of such Act.
(5) National health service corps.--The programs of the
National Health Service Corps under subparts II and III of part
D of title III of such Act.
(6) Community health programs.--The programs under sections
329 and 330 of such Act.
SEC. 7. ADDITIONAL FUNDS FOR COUNTER ADVERTISING AND TOBACCO PREVENTIVE
ACTIVITIES.
With respect to the funds made available under section 9512(c)(4)
of the Internal Revenue Code of 1986, the Secretary of Health and Human
Services shall provide for public education and other activities to
discourage the use of tobacco products, with special emphasis on
discouraging cigarette smoking by youths. At least \1/2\ of such funds
shall be made available for counter-advertising to discourage the use
of such products.
SEC. 8. DEPARTMENT OF AGRICULTURE PROGRAMS TO ASSIST TOBACCO PRODUCERS
EXPERIENCING FINANCIAL HARDSHIP CAUSED BY INCREASED
EXCISE TAXES ON TOBACCO PRODUCTS.
(a) Income Assistance.--
(1) Assistance authorized.--If the Secretary of Agriculture
determines that the domestic consumption of tobacco for a
marketing year is equal to or less than 95 percent of the
normal year's domestic consumption of tobacco calculated in
1993, the Secretary may make payments to a tobacco producer in
the United States to offset all or a portion of the reduced
sales of tobacco made by that producer during that marketing
year compared to sales made by that producer during the
marketing year ending in 1993.
(2) Exception.--The Secretary may not make a payment under
this subsection to a tobacco producer if the Secretary
determines that the reduction in tobacco sales by the
producer--
(A) is unrelated to the increase in excise taxes on
tobacco products imposed by section 2; or
(B) is offset by sales of other crops produced on
lands converted from tobacco production.
(b) Promotion of Alternative Crops.--The Secretary of Agriculture
shall encourage and assist tobacco producers in the United States to
convert their farm operations from the production of tobacco to other
crops. Assistance provided under this subsection may include--
(1) the provision of grants and loans to purchase
equipment, seeds or nursery stocks, or fertilizer to produce
other crops;
(2) the treatment of lands converted from tobacco
production to the production of another program crop as lands
considered planted to that crop in the calculation of crop
acreage bases under title V of the Agricultural Act of 1949 (7
U.S.C. 1461 et seq.);
(3) the provision of technical advice regarding the care
and harvesting of other crops; and
(4) the undertaking of measures to improve the access of
tobacco producers to the markets for other crops.
(c) Processing and Marketing Initiatives.--
(1) Grants.--The Secretary of Agriculture shall make grants
to States in which tobacco is produced to assist those States--
(A) in attracting food processing companies to
establish food processing facilities in those States in
order to create a market for tobacco producers who
convert their farm operations from the production of
tobacco to other crops; and
(B) in establishing a cooperative collection and
distribution process among tobacco producers who
convert to other crops in order to efficiently supply
food processing facilities in those States.
(2) Application and conversion plan.--To receive a grant
under this subsection, a State shall submit to the Secretary an
application in such form and containing such information as the
Secretary may require. The application shall contain--
(A) a description of the extent to which the
economy of the State is dependent upon the production
of tobacco and the manufacturing of tobacco products;
and
(B) a specific plan to use the grant to reduce the
State's dependence upon the production of tobacco and
the manufacturing of tobacco products.
(3) Report.--Not later than 15 months after receiving a
grant under this subsection, each State receiving such a grant
shall submit a report to the Secretary containing--
(A) a description of the uses made of the grant by
the State, including the amount of the grant expended
for each use; and
(B) an evaluation of the extent to which the grant
assisted the State in reducing its dependence upon the
production of tobacco and the manufacturing of tobacco
products.
(d) Funding.--The Secretary of Agriculture shall carry out this
section using funds made available to the Secretary from the Tobacco
Health Tax Trust Fund under section 9512(c)(5) of the Internal Revenue
Code of 1986.
(e) Definitions.--For purposes of this section:
(1) The term ``normal year's domestic consumption'' has the
meaning given that term in section 301(b)(11)(B) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1301(b)(11)(B)).
(2) The term ``marketing year'' has the meaning given that
term in section 301(b)(7) of such Act (7 U.S.C. 1301(b)(7)).
<all>
HR 1246 IH----2
HR 1246 IH----3
HR 1246 IH----4
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E530)
Referred to the House Committee on Agriculture.
Referred to the House Committee on Energy and Commerce.
Referred to the House Committee on Ways and Means.
Referred to the Subcommittee on Specialty Crops and Natural Resources.
Referred to the Subcommittee on Health.
Referred to the Subcommittee on Health and the Environment.
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