Citations Affected: IC 4-12; IC 6-7; IC 20-12; IC 25-22.5; noncode.
Synopsis: Health program funding. Makes appropriations from the
tobacco master settlement agreement fund for various health programs
and commissions. Eliminates the spending caps applicable to the
tobacco master settlement agreement fund. Appropriates money from
the state general fund for developmentally disabled client services and
the local health maintenance fund. Provides for a waiver to increase
the income ceiling for eligibility for the Hoosier Rx program from
135% to 185% of the federal poverty guideline. Establishes a health
professions scholarship fund.
Effective: July 1, 2003.
January 23, 2003, read first time and referred to Committee on Rules and Legislative
Procedures.
February 20, 2003, reassigned to Committee on Ways and Means.
February 25, 2003, amended, reported _ Do Pass.
A BILL FOR AN ACT to amend the Indiana Code concerning
health and to make an appropriation.
SECTION 1. IC 4-12-1-14.3, AS AMENDED BY P.L.291-2001,
SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 14.3. (a) As used in this section, "master
settlement agreement" has the meaning set forth in IC 24-3-3-6.
(b) There is hereby created the Indiana tobacco master settlement
agreement fund for the purpose of depositing and distributing money
received under the master settlement agreement. The fund consists of:
(1) all money received by the state under the master settlement
agreement;
(2) appropriations made to the fund by the general assembly; and
(3) grants, gifts, and donations intended for deposit in the fund.
(c) Money may be expended, transferred, or distributed from the
fund during a state fiscal year only in amounts permitted by subsections
(d) through (e), and only if the expenditures, transfers, or distributions
are specifically authorized by another statute.
(d) The maximum amount of expenditures, transfers, or distributions
that may be made from the fund during the state fiscal year beginning
July 1, 2000, is determined under STEP THREE of the following
formula:
STEP ONE: Determine the sum of money received or to be
received by the state under the master settlement agreement
before July 1, 2001.
STEP TWO: Subtract from the STEP ONE sum the amount
appropriated by P.L.273-1999, SECTION 8, to the children's
health insurance program from funds accruing to the state from
the tobacco settlement for the state fiscal years beginning July 1,
1999, and July 1, 2000.
STEP THREE: Multiply the STEP TWO remainder by fifty
percent (50%).
(e) The maximum amount of expenditures, transfers, or distributions
that may be made from the fund during the state fiscal year beginning
July 1, 2001, and each state fiscal year after that is determined under
STEP THREE of the following formula:
STEP ONE: Determine the amount of money received or to be
received by the state under the master settlement agreement
during that state fiscal year.
STEP TWO: Multiply the STEP ONE amount by sixty percent
(60%).
STEP THREE: Add to the STEP TWO product any amounts that
were available for expenditure, transfer, or distribution under this
subsection or subsection (d) during preceding state fiscal years
but that were not expended, transferred, or distributed.
(f) The following amounts shall be retained in the fund and may not
be expended, transferred, or otherwise distributed from the fund:
(1) All of the money that is received by the state under the master
settlement agreement and remains in the fund after the
expenditures, transfers, or distributions permitted under
subsections (c) through (e).
(2) All interest that accrues from investment of money in the fund,
unless specifically appropriated by the general assembly. Interest
that is appropriated from the fund by the general assembly may
not be considered in determining the maximum amount of
expenditures, transfers, or distributions under subsection (e).
(g) (c) The fund shall be administered by the budget agency.
Notwithstanding IC 5-13, the treasurer of state shall invest the money
in the fund not currently needed to meet the obligations of the fund in
the same manner as money is invested by the public employees
retirement fund under IC 5-10.3-5. The treasurer of state may contract
with investment management professionals, investment advisors, and
legal counsel to assist in the investment of the fund and may pay the
state expenses incurred under those contracts from the fund. Interest
that accrues from these investments shall be deposited in the fund.
Money in the fund at the end of the state fiscal year does not revert to
the state general fund.
(h) (d) The state general fund is not liable for payment of a shortfall
in expenditures, transfers, or distributions from the Indiana tobacco
master settlement agreement fund or any other fund due to a delay,
reduction, or cancellation of payments scheduled to be received by the
state under the master settlement agreement or for any other reason.
Unless otherwise provided by statute, if such a shortfall occurs in any
state fiscal year, the budget agency shall make the full transfer to the
regional health facilities construction account and then reduce all
remaining expenditures, transfers, and distributions affected by the
shortfall shall be reduced proportionately.
SECTION 2. IC 4-12-8.5-3, AS ADDED BY P.L.291-2001,
SECTION 72, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 3. (a) The regional health care construction
account is established for the purpose of providing funding for state
psychiatric hospitals and developmental centers, regional health
centers, or other health facilities designed to provide crisis treatment,
rehabilitation, or intervention for adults or children with mental illness,
developmental disabilities, addictions, or other medical or
rehabilitative needs. The account consists of:
(1) amounts, if any, that any statute requires to be distributed to
the account from the Indiana tobacco master settlement
agreement fund;
(2) appropriations to the account from other sources; and
(3) grants, gifts, and donations intended for deposit in the
account.
(b) Fourteen million dollars ($14,000,000) shall be transferred
during state fiscal years 2001-2002 and 2002-2003 from the Indiana
tobacco master settlement fund to the account.
(c) (b) The budget agency shall administer the account. Money in
the account at the end of a state fiscal year does not revert to the state
general fund but remains available for expenditure.
(d) (c) Money in the account may be used for:
(1) the construction, equipping, renovation, demolition,
refurbishing, or alteration of existing or new state hospitals,
regional health centers, or other health facilities; or
(2) lease rentals to the state office building commission or other
public or private providers of such facilities.
in section 6(a) of this chapter in any type of health care setting
in Indiana for at least two (2) years following graduation;
(3) meet any other minimum criteria established by the
commission; and
(4) demonstrate a financial need for the scholarship.
(b) To qualify for a scholarship renewal from the fund, a health
professions student must:
(1) comply with the criteria set forth in subsection (a);
(2) maintain at least the cumulative grade point average:
(A) that is required by an approved institution of higher
learning for admission to the approved institution of
higher learning; or
(B) equivalent to 2.0 on a 4.0 grading scale, as established
by the approved institution of higher learning, if the
institution's program for health professions described in
section 6 of this chapter does not require a certain
minimum cumulative grade point average; and
(3) demonstrate a continuing financial need for the
scholarship.
Sec. 9. (a) The commission shall maintain complete and accurate
records in implementing the program, including the following:
(1) Scholarships awarded under this chapter.
(2) The number of individuals who fulfilled the agreement
described under section 8(a)(2) of this chapter.
(3) The number of individuals who did not fulfill the
agreement described under section 8(a)(2) of this chapter.
(b) Each eligible institution shall provide the commission with
information concerning the following:
(1) The awarding of scholarships under this chapter.
(2) The academic progress made by each recipient of a
scholarship under this chapter.
(3) Other pertinent information requested by the commission.
Sec. 10. The commission shall adopt rules under IC 4-22-2
necessary to carry out this chapter, including rules governing the
enforcement of the agreements under section 8(a)(2) of this
chapter.
SECTION 6. IC 25-22.5-2-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 7. The board shall do
the following:
(1) Adopt rules and forms necessary to implement this article that
concern, but are not limited to, the following areas:
(A) Qualification by education, residence, citizenship,
training, and character for admission to an examination for
licensure or by endorsement for licensure.
(B) The examination for licensure.
(C) The license or permit.
(D) Fees for examination, permit, licensure, and registration.
(E) Reinstatement of licenses and permits.
(F) Payment of costs in disciplinary proceedings conducted by
the board.
(2) Administer oaths in matters relating to the discharge of its
official duties.
(3) Enforce this article and assign service bureau personnel duties
as may be necessary in the discharge of the board's duty.
(4) Maintain, through the service bureau, full and complete
records of all applicants for licensure or permit and of all licenses
and permits issued.
(5) Make available, upon request, the complete schedule of
minimum requirements for licensure or permit.
(6) Issue, at the board's discretion, a temporary permit to an
applicant for the interim from the date of application until the
next regular meeting of the board.
(7) Issue an unlimited license, a limited license, or a temporary
medical permit, depending upon the qualifications of the
applicant, to any applicant who successfully fulfills all of the
requirements of this article.
(8) Adopt rules establishing standards for the competent practice
of medicine, osteopathic medicine, or any other form of practice
regulated by a limited license or permit issued under this article.
(9) Adopt rules regarding the appropriate prescribing of Schedule
III or Schedule IV controlled substances for the purpose of weight
reduction or to control obesity.
(10) Adopt rules identifying training programs for
nonlicensed allied health care professions that qualify for
annual scholarships under IC 20-12-22.2.
SECTION 7. [EFFECTIVE JULY 1, 2003] (a) The definitions set
forth in HEA 1001-2003, SECTION 1, apply throughout this
SECTION.
(b) The following sums are appropriated for the periods
designated from the Indiana tobacco master settlement agreement
fund (IC 4-12-1-14.3):
FY 2003-FY 2004 2004-2005
FOR THE INDIANA HEALTH CARE ADVISORY BOARD
Children's Health Insurance Program
Total Operating
Expense 23,800,000 26,200,000
FOR THE TOBACCO USE PREVENTION AND
CESSATION BOARD
TOBACCO USE PREVENTION AND CESSATION
PROGRAM
Total Operating
Expense 32,000,000 32,000,000
FOR THE STATE BUDGET AGENCY
INDIANA PRESCRIPTION DRUG PROGRAM
Total Operating
Expense 8,000,000 8,000,000
With the approval of the governor and the budget agency, the
above appropriations for the Indiana prescription drug
program may be augmented for each fiscal year from the
Indiana tobacco master settlement agreement fund to an
amount not to exceed in total, together with the above specific
amounts, $20,000,000.
FOR THE STATE DEPARTMENT OF HEALTH
COMMUNITY HEALTH CENTERS
Total Operating
Expense 15,000,000 15,000,000
LOCAL HEALTH MAINTENANCE FUND
Total Operating
Expense 1,400,000 1,400,000
The above appropriations for the local health maintenance
fund are in addition to and not in lieu of the appropriation
provided for this purpose in IC 6-7-1-30.5 or any other law.
LOCAL HEALTH DEPARTMENT ACCOUNT
Total Operating
Expense 3,000,000 3,000,000
The foregoing appropriations for the local health department
account are statutory distributions pursuant to IC 4-12-7.
FOR THE FAMILY AND SOCIAL SERVICES
ADMINISTRATION
DIVISION OF DISABILITY, AGING, AND
REHABILITATIVE SERVICES ADMINISTRATION
Total Operating
Expense 3,000,000 3,000,000
The foregoing appropriations for the division of disability,
aging, and rehabilitative services are appropriated for the
home health providers to increase the salaries of direct care
workers.
DEVELOPMENTALLY DISABLED CLIENT SERVICES
Total Operating
Expense 21,300,000 21,300,000
The foregoing appropriations for developmentally disabled
client services are in addition to and not in lieu of any other
appropriations for developmentally disabled client services.
FOR THE STATE STUDENT ASSISTANCE COMMISSION
NURSING SCHOLARSHIP PROGRAM
Total Operating
Expense 1,000,000 1,000,000
The above appropriations for the nursing scholarship program
are in addition to and not in lieu of any other appropriations
for the program. The state student assistance commission shall
use twenty-five percent (25%) of the above appropriations for
the nursing scholarship program to encourage and promote
qualified minority individuals to pursue a career in nursing in
accredited schools in Indiana.
HEALTH PROFESSIONS SCHOLARSHIP PROGRAM
Total Operating
Expense 1,000,000 1,000,000
The state student assistance commission shall use twenty-five
percent (25%) of the above appropriations for the health
professions scholarship program to encourage and promote
qualified minority individuals to pursue a career in health
professions in accredited schools in Indiana.
FOR THE COMMISSION ON HISPANIC/LATINO AFFAIRS
Total Operating
Expense 125,000 125,000
The above appropriations are in addition to any funding for
the commission derived from funds appropriated to the
department of workforce development.
(c) There is appropriated to the budget agency two million nine
hundred thousand dollars ($2,900,000) from the Indiana tobacco
master settlement agreement fund for its use in carrying out the
purposes of the regional health facilities construction account
(IC 4-12-8.5) during the period beginning July 1, 2004, and ending
June 30, 2005.
(d) The following provisions apply if the Indiana tobacco master
settlement agreement fund contains insufficient money to make the
appropriations made by subsections (b) and (c) for any state fiscal
year:
waiver for Phase II of the Indiana prescription drug program
established under IC 12-10-16 that would amend the waiver to
allow the program to provide services to an individual whose
family income does not exceed one hundred eighty-five percent
(185%) of the federal income poverty level for the same size family.
(c) The office may not implement the amendment to the waiver
until the office files an affidavit with the governor attesting that the
amendment to the federal waiver applied for under this SECTION
is in effect. The office shall file the affidavit under this subsection
not later than five (5) days after the office is notified that the
amendment to the waiver is approved.
(d) If the office receives approval to amend the waiver as set
forth in subsection (b) of this SECTION from the United States
Department of Health and Human Services and the governor
receives the affidavit filed under subsection (c), the office shall
implement the amendment to the waiver not more than thirty (30)
days after the governor receives the affidavit.
(e) The office may adopt rules under IC 4-22-2 necessary to
implement this SECTION.
(f) This SECTION expires December 31, 2008.