HB 1149-2_ Filed 02/27/2012, 10:17 Delph
that Engrossed House Bill 1149 be amended to read as follows:
Delete the title and insert the following:
A BILL FOR AN ACT to amend the Indiana Code concerning
alcohol and tobacco and to make an appropriation.
SOURCE: Page 1, line 1; (12)MO114924.1. -->
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
SOURCE: IC 5-10-8-8.5; (12)MO114924.1. -->
"SECTION 1. IC 5-10-8-8.5, AS ADDED BY P.L.182-2009(ss),
SECTION 68, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 8.5. (a) The retiree health benefit trust fund is
established to provide funding for a retiree health benefit plan
developed under IC 5-10-8.5.
(b) The trust fund shall be administered by the budget agency. The
expenses of administering the trust fund shall be paid from money in
the trust fund. The trust fund consists of:
cigarette tax revenues
deposited in the fund under IC 6-7-1-28.1(7) and other
appropriations from the general assembly;
or designated for deposit in the trust fund by the
general assembly; and
transfers to the trust fund under IC 4-12-1.
(c) The treasurer of state shall invest the money in the trust fund not
currently needed to meet the obligations of the trust fund in the same
manner as other public money may be invested.
(d) The trust fund is considered a trust fund for purposes of
IC 4-9.1-1-7. Money may not be transferred, assigned, or otherwise
removed from the trust fund by the state board of finance, the budget
agency, or any other state agency.
(e) The trust fund shall be established and administered in a manner
that complies with Internal Revenue Code requirements concerning
health reimbursement arrangement (HRA) trusts. Contributions by the
state to the trust fund are irrevocable. All assets held in the trust fund
must be held for the exclusive benefit of participants of the retiree
health benefit plan developed under IC 5-10-8.5 and their beneficiaries.
All assets in the trust fund:
(1) are dedicated exclusively to providing benefits to participants
of the plan and their beneficiaries according to the terms of the
(2) are exempt from levy, sale, garnishment, attachment, or other
(f) Money in the trust fund does not revert to the state general fund
at the end of any state fiscal year.
(g) The money in the trust fund is appropriated to the budget agency
for providing the retiree health benefit plan developed under
SOURCE: IC 6-7-1-12; (12)MO114924.2. -->
SECTION 2. IC 6-7-1-12, AS AMENDED BY P.L.218-2007,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 12. (a) The following taxes are imposed, and shall
be collected and paid as provided in this chapter, upon the sale,
exchange, bartering, furnishing, giving away, or otherwise disposing of
cigarettes within the state of Indiana:
(1) On cigarettes weighing not more than three (3) pounds per
thousand (1,000), a tax at the rate of
four two and nine seven
hundred seventy-five thousandths cents ($0.04975) ($0.02775)
per individual cigarette.
(2) On cigarettes weighing more than three (3) pounds per
thousand (1,000), a tax at the rate of
six three and six thousand
eight hundred twelve thousandths eighty-one ten-thousandths
cents ($0.06612) ($0.036881) per individual cigarette, except that
if any cigarettes weighing more than three (3) pounds per
thousand (1,000) shall be more than six and one-half (6 1/2)
inches in length, they shall be taxable at the rate provided in
subdivision (1), counting each two and three-fourths (2 3/4)
inches (or fraction thereof) as a separate cigarette.
(b) Upon all cigarette papers, wrappers, or tubes, made or prepared
for the purpose of making cigarettes, which are sold, exchanged,
bartered, given away, or otherwise disposed of within the state of
Indiana (other than to a manufacturer of cigarettes for use by him in the
manufacture of cigarettes), the following taxes are imposed, and shall
be collected and paid as provided in this chapter:
(1) On fifty (50) papers or less, a tax of one-half cent ($0.005).
(2) On more than fifty (50) papers but not more than one hundred
(100) papers, a tax of one cent ($0.01).
(3) On more than one hundred (100) papers, one-half cent
($0.005) for each fifty (50) papers or fractional part thereof.
(4) On tubes, one cent ($0.01) for each fifty (50) tubes or
fractional part thereof.
SOURCE: IC 6-7-1-17; (12)MO114924.3. -->
SECTION 3. IC 6-7-1-17, AS AMENDED BY P.L.131-2008,
SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: 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 one and
two-tenths eight hundredths cents ($0.012) ($0.0108) per individual
package of cigarettes 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;
(2) proof of payment is made of all property taxes, excise taxes,
and listed taxes (as defined in IC 6-8.1-1-1) for which any such
distributor may be liable; and
(3) payment for the revenue stamps must be made by electronic
funds transfer (as defined in IC 4-8.1-2-7).
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.
(c) If a distributor has at least five (5) consecutive years of good
credit standing with the state, the distributor shall not be required to
post a bond or letter of credit under subsection (b).
SOURCE: IC 6-7-1-28.1; (12)MO114924.4. -->
SECTION 4. IC 6-7-1-28.1, AS AMENDED BY P.L.229-2011,
SECTION 95, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 28.1. The taxes, registration fees, fines, or
penalties collected under this chapter shall be deposited in the
twenty-two hundredths six-tenths
of the money shall be deposited in a fund to be
known as the cigarette tax fund.
Six-tenths Ninety-four hundredths
of the money shall be deposited in a fund to be known as the
mental health centers fund.
The following amount Eighty-three and ninety-seven
hundredths percent (83.97%)
of the money shall be deposited
in the state general fund.
(A) After June 30, 2011, and before July 1, 2013, sixty and
twenty-four hundredths percent (60.24%).
(B) After June 30, 2013, fifty-four and five-tenths percent
Five Eight and forty-three forty-nine hundredths percent
(5.43%) (8.49%) of the money shall be deposited into the pension
relief fund established in IC 5-10.3-11.
(5) Twenty-seven and five hundredths percent (27.05%) of the
money shall be deposited in the Indiana check-up plan trust fund
established by IC 12-15-44.2-17.
(6) Two and forty-six hundredths percent (2.46%) of the money
shall be deposited in the state general fund for the purpose of
paying appropriations for Medicaid_Current Obligations, for
(7) The following amount of the money shall be deposited in the
state retiree health benefit trust fund established by IC 5-10-8-8.5
(A) Before July 1, 2011, five and seventy-four hundredths
(B) After June 30, 2011, and before July 1, 2013, zero percent
(C) After June 30, 2013, five and seventy-four hundredths
The money in the cigarette tax fund, the mental health centers fund,
Indiana check-up plan trust 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. Money deposited under subdivisions (6) through (7)
may not be used for any purpose other than the purpose stated in the
SOURCE: IC 6-7-2-7; (12)MO114924.5. -->
SECTION 5. IC 6-7-2-7, AS AMENDED BY P.L.172-2011,
SECTION 83, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 7. (a) A tax is imposed on the distribution of
tobacco products in Indiana at the rate of:
twenty-four eighteen percent (24%) (18%) of the wholesale
price of tobacco products other than moist snuff; or
(2) for moist snuff, forty cents ($0.40) per ounce, and a
proportionate tax at the same rate on all fractional parts of an
ounce. If the tax calculated for a fractional part of an ounce
carried to the third decimal place results in the numeral in the
third decimal place being greater than four (4), the amount of the
tax shall be rounded to the next additional cent.
(b) The distributor of the tobacco products is liable for the tax
imposed under subsection (a). The tax is imposed at the time the
(1) brings or causes tobacco products to be brought into Indiana
(2) manufactures tobacco products in Indiana for distribution; or
(3) transports tobacco products to retail dealers in Indiana for
resale by those retail dealers.
(c) The Indiana general assembly finds that the tax rate on
smokeless tobacco should reflect the relative risk between such
products and cigarettes.
SOURCE: IC 6-7-2-17; (12)MO114924.6. -->
SECTION 6. IC 6-7-2-17, AS AMENDED BY P.L.234-2007,
SECTION 202, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 17. The department shall deposit
twenty-five percent (25%) of the taxes, registration fees, fines, or
penalties all revenue collected under this chapter in the affordable
housing and community development fund established by IC 5-20-4-7.
The remainder of the taxes, registration fees, fines, or penalties
collected under this chapter shall be deposited as provided in
SOURCE: Page 7, line 12; (12)MO114924.7. -->
Page 7, between lines 12 and 13, begin a new paragraph and insert:
SOURCE: IC 12-7-2-140.5; (12)MO114924.8. -->
"SECTION 8. IC 12-7-2-140.5 IS REPEALED [EFFECTIVE UPON
Sec. 140.5. "Plan", for purposes of IC 12-15-44.2, has the
meaning set forth in IC 12-15-44.2-1.
SOURCE: IC 12-7-2-144.3; (12)MO114924.9. -->
SECTION 9. IC 12-7-2-144.3 IS REPEALED [EFFECTIVE JULY
Sec. 144.3. "Preventative care services", for purposes of
IC 12-15-44.2, has the meaning set forth in IC 12-15-44.2-2.".
SOURCE: Page 7, line 15; (12)MO114924.7. -->
Page 7, between lines 15 and 16, begin a new paragraph and insert:
SOURCE: IC 12-15-1.3-14; (12)MO114924.11. -->
"SECTION 11. IC 12-15-1.3-14, AS ADDED BY P.L.220-2011,
SECTION 264, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 14. (a) The office shall apply
to the United States Department of Health and Human Services for
approval of a Section 1115 demonstration waiver or a Medicaid state
plan amendment to develop and implement
the following: (1) a health
insurance coverage program to cover individuals who meet the
(A) (1) The individual is at least eighteen (18) years of age and
less than sixty-five (65) years of age.
(B) (2) The individual is a United States citizen and has been a
resident of Indiana for at least twelve (12) months.
(C) (3) The individual has an annual household income of not
more than two hundred percent (200%) of the federal income
(D) (4) The individual is not eligible for health insurance
coverage through the individual's employer.
(E) (5) The individual has been without health insurance coverage
for at least six (6) months or is without health insurance coverage
because of a change in employment.
(2) A premium assistance program described in IC 12-15-44.2-20.
(b) The office shall include in the waiver application or state plan
amendment a request to fund the program in part by using:
(1) enhanced federal financial participation; and
(2) hospital care for the indigent dollars, upper payment limit
dollars, or disproportionate share hospital dollars.
(c) The office may not implement the waiver or state plan
amendment until the office:
(1) files an affidavit with the governor attesting that the federal
waiver or amendment applied for under this section is in effect;
(2) has sufficient funding for the program.
The office shall file the affidavit under this subsection not later than
five (5) days after the office is notified that the waiver or amendment
(d) The office may adopt rules under IC 4-22-2 necessary to
implement this section.
(e) This section expires December 31, 2013.
SOURCE: IC 12-15-44.2; (12)MO114924.12. -->
SECTION 12. IC 12-15-44.2 IS REPEALED [EFFECTIVE JULY
1, 2012]. (Indiana Check-Up Plan).".
SOURCE: Page 8, line 38; (12)MO114924.8. -->
Page 8, after line 38, begin a new paragraph and insert:
SOURCE: IC 27-8-10-5.1; (12)MO114924.19. -->
"SECTION 19. IC 27-8-10-5.1, AS AMENDED BY P.L.229-2011,
SECTION 253, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 5.1. (a) A person is not eligible for
an association policy if the person is eligible for any of the coverage
described in subdivisions (1) and (2). A person other than a federally
eligible individual may not apply for an association policy unless the
person has applied for:
(1) Medicaid; and
(2) coverage under the
preexisting condition insurance plan
program established by the Secretary of Health and Human
Services under Section 1101 of Title I of the federal Patient
Protection and Affordable Care Act (P.L. 111-148);
Indiana check-up plan under IC 12-15-44.2;
not more than sixty (60) days before applying for the association
(b) Except as provided in subsection (c), a person is not eligible for
an association policy if, at the effective date of coverage, the person has
or is eligible for coverage under any insurance plan that equals or
exceeds the minimum requirements for accident and sickness insurance
policies issued in Indiana as set forth in IC 27. However, an offer of
coverage described in IC 27-8-5-2.5(e) (expired July 1, 2007, and
removed), IC 27-8-5-2.7, IC 27-8-5-19.2(e) (expired July 1, 2007, and
repealed), or IC 27-8-5-19.3 does not affect an individual's eligibility
for an association policy under this subsection. Coverage under any
association policy is in excess of, and may not duplicate, coverage
under any other form of health insurance.
(c) Except as provided in IC 27-13-16-4 and subsection (a), a person
is eligible for an association policy upon a showing that:
(1) the person has been rejected by one (1) carrier for coverage
under any insurance plan that equals or exceeds the minimum
requirements for accident and sickness insurance policies issued
in Indiana, as set forth in IC 27, without material underwriting
(2) an insurer has refused to issue insurance except at a rate
exceeding the association plan rate; or
(3) the person is a federally eligible individual.
For the purposes of this subsection, eligibility for Medicare coverage
does not disqualify a person who is less than sixty-five (65) years of
age from eligibility for an association policy.
(d) Coverage under an association policy terminates as follows:
(1) On the first date on which an insured is no longer a resident of
(2) On the date on which an insured requests cancellation of the
(3) On the date of the death of an insured.
(4) At the end of the policy period for which the premium has
(5) On the first date on which the insured no longer meets the
eligibility requirements under this section.
(e) An association policy must provide that coverage of a dependent
unmarried child terminates when the child becomes nineteen (19) years
of age (or twenty-five (25) years of age if the child is enrolled full time
in an accredited educational institution). The policy must also provide
in substance that attainment of the limiting age does not operate to
terminate a dependent unmarried child's coverage while the dependent
is and continues to be both:
(1) incapable of self-sustaining employment by reason of mental
retardation or mental or physical disability; and
(2) chiefly dependent upon the person in whose name the contract
is issued for support and maintenance.
However, proof of such incapacity and dependency must be furnished
to the carrier within one hundred twenty (120) days of the child's
attainment of the limiting age, and subsequently as may be required by
the carrier, but not more frequently than annually after the two (2) year
period following the child's attainment of the limiting age.
(f) An association policy that provides coverage for a family
member of the person in whose name the contract is issued must, as to
the family member's coverage, also provide that the health insurance
benefits applicable for children are payable with respect to a newly
born child of the person in whose name the contract is issued from the
moment of birth. The coverage for newly born children must consist of
coverage of injury or illness, including the necessary care and treatment
of medically diagnosed congenital defects and birth abnormalities. If
payment of a specific premium is required to provide coverage for the
child, the contract may require that notification of the birth of a child
and payment of the required premium must be furnished to the carrier
within thirty-one (31) days after the date of birth in order to have the
coverage continued beyond the thirty-one (31) day period.
(g) Except as provided in subsection (h), an association policy may
contain provisions under which coverage is excluded during a period
of three (3) months following the effective date of coverage as to a
given covered individual for preexisting conditions, as long as medical
advice or treatment was recommended or received within a period of
three (3) months before the effective date of coverage. This subsection
may not be construed to prohibit preexisting condition provisions in an
insurance policy that are more favorable to the insured.
(h) If a person applies for an association policy within six (6)
months after termination of the person's coverage under a health
insurance arrangement and the person meets the eligibility
requirements of subsection (c), then an association policy may not
contain provisions under which:
(1) coverage as to a given individual is delayed to a date after the
effective date or excluded from the policy; or
(2) coverage as to a given condition is denied;
on the basis of a preexisting health condition. This subsection may not
be construed to prohibit preexisting condition provisions in an
insurance policy that are more favorable to the insured.
(i) For purposes of this section, coverage under a health insurance
arrangement includes, but is not limited to, coverage pursuant to the
Consolidated Omnibus Budget Reconciliation Act of 1985.
SOURCE: IC 27-8-10.1; (12)MO114924.20. -->
SECTION 20. IC 27-8-10.1 IS REPEALED [EFFECTIVE JULY 1,
2012]. (High Risk Indiana Check-Up Plan Participants).
SOURCE: ; (12)MO114924.21. -->
SECTION 21. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION, "plan" refers to:
(1) the Indiana check-up plan established by IC 12-15-44.2-3
(before its repeal by this act); or
(2) a health insurance plan similar to the plan specified in
subdivision (1) that the state continues to operate under a
federal waiver after the repeal of IC 12-15-44.2 by this act.
(b) The office of the secretary of family and social services shall
do the following concerning termination of the plan:
(1) Submit a request to the United States Department of
Health and Human Services to terminate the plan waiver.
(2) Develop and implement a procedure for the orderly
termination of the plan.
(c) Money held in the Indiana check-up plan trust fund
established under IC 12-15-44.2-17 (before its repeal by this act)
shall be paid into the Medicaid account of the state general fund
promptly after the repeal of IC 12-15-44.2-17 by this act.
(d) The amount transferred to the Medicaid account of the state
general fund under subsection (c) is appropriated to the office of
the secretary of family and social services from the Medicaid
account of the state general fund for its use in paying claims under
the plan that remain unpaid on or accrue after the effective date of
this act beginning on the effective date of this act and ending June
(e) This SECTION expires June 30, 2013.
SOURCE: ; (12)MO114924.22. -->
SECTION 22. An emergency is declared for this act.
Renumber all SECTIONS consecutively.
(Reference is to EHB 1149 as printed February 24, 2012.)