HOUSE BILL No. 1398
DIGEST OF INTRODUCED BILL
Synopsis: Funding of minority health initiatives. Establishes the
minority health initiatives fund, consisting of money from the sale of
cigarette tax stamps, to further minority health initiatives. Reduces the
amount of the discount given distributors who purchase cigarette tax
Effective: July 1, 2003.
January 14, 2003, read first time and referred to Committee on Ways and Means.
First Regular Session 113th General Assembly (2003)
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HOUSE BILL No. 1398
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-7-1-17; (03)IN1398.1.1. -->
, AS AMENDED BY P.L.192-2002(ss),
SECTION 136, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 17. (a) Distributors who hold
certificates and retailers shall be agents of the state in the collection of
the taxes imposed by this chapter and the amount of the tax levied,
assessed, and imposed by this chapter on cigarettes sold, exchanged,
bartered, furnished, given away, or otherwise disposed of by
distributors or to retailers. Distributors who hold certificates shall be
agents of the department to affix the required stamps and shall be
entitled to purchase the stamps from the department at a discount of
two-tenths seventeen-hundredths percent (1.2%) (1.17%) of
the amount of the tax stamps purchased, as compensation for their
labor and expense.
(b) The department may permit distributors who hold certificates
and who are admitted to do business in Indiana to pay for revenue
stamps within thirty (30) days after the date of purchase. However, the
privilege is extended upon the express condition that:
(1) except as provided in subsection (c), a bond or letter of credit
satisfactory to the department, in an amount not less than the sales
price of the stamps, is filed with the department; and
(2) proof of payment is made of all local property, state income,
and excise taxes for which any such distributor may be liable. The
bond or letter of credit, conditioned to secure payment for the
stamps, shall be executed by the distributor as principal and by a
corporation duly authorized to engage in business as a surety
company or financial institution in Indiana.
(1) there is an increase in the amount of the tax imposed upon
cigarettes under this chapter; and
(2) a distributor has at least five (5) consecutive years of good
credit standing with the state as of the effective date of the tax
increase described in subdivision (1);
the amount of the bond required by subsection (b)(1) remains the same
as before the increase in the tax on cigarettes took effect.
SOURCE: IC 6-7-1-28.1; (03)IN1398.1.2. -->
, AS AMENDED BY P.L.192-2002(ss),
SECTION 137, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 28.1. (a) An amount equal to
three-hundredths percent (0.03%) of the amount of the tax stamps
sold under section 14 of this chapter shall be deposited in the
minority health initiatives fund established by
(b) After the amount described in subsection (a) is deposited in
the minority health initiatives fund,
fees, fines, or penalties collected under this chapter shall be deposited
in the following manner:
(1) Six and six-tenths percent (6.6%) of the money shall be
deposited in a fund to be known as the cigarette tax fund.
(2) Ninety-four hundredths percent (0.94%) of the money shall be
deposited in a fund to be known as the mental health centers fund.
(3) Eighty-three and ninety-seven hundredths percent (83.97%)
of the money shall be deposited in the state general fund.
(4) Eight and forty-nine hundredths percent (8.49%) of the money
shall be deposited into the pension relief fund established in
The money in the cigarette tax fund, the mental health centers fund, or
the pension relief fund at the end of a fiscal year does not revert to the
state general fund. However, if in any fiscal year, the amount allocated
to a fund under subdivision (1) or (2) is less than the amount received
in fiscal year 1977, then that fund shall be credited with the difference
between the amount allocated and the amount received in fiscal year
1977, and the allocation for the fiscal year to the fund under
subdivision (3) shall be reduced by the amount of that difference.
SOURCE: IC 16-46-11-2; (03)IN1398.1.3. -->
IS ADDED TO THE INDIANA CODE
AS A NEW
SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2003]: Sec. 2. (a) The minority health initiatives fund is
established for purposes of carrying out section 1 of this chapter.
The fund consists of the following:
(1) Money deposited in the fund under
(2) Money appropriated by the general assembly.
(3) Money received from any other source.
(b) The state department shall administer the fund. The state
department shall transfer money in the fund to the Indiana
Minority Health Coalition for purposes of carrying out section 1 of
(c) The expenses of administering the fund shall be paid from
money in the fund. There is annually appropriated to the state
department money in the minority health initiatives fund for the
department's use in carrying out this section.
(d) 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 other public money may be invested.
(e) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.