78S40427 DLF/CLG-D

By:  Naishtat                                                     H.B. No. 47 


A BILL TO BE ENTITLED
AN ACT
relating to the increases in the tax on cigarettes and to the allocation of that increase to health and human services programs; making appropriations. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. CIGARETTE TAX
SECTION 1.01. Section 154.021(b), Tax Code, is amended to read as follows: (b) The tax rates are: (1) $70.50 [$20.50] per thousand on cigarettes weighing three pounds or less per thousand; and (2) the rate provided by Subdivision (1) plus $2.10 per thousand on cigarettes weighing more than three pounds per thousand. SECTION 1.02. Section 154.603, Tax Code, is amended to read as follows: Sec. 154.603. DISPOSITION OF REVENUE. (a) After the deductions for the purposes provided by Section 154.602 [of this code], the revenue remaining of the first $2 of tax received per 1,000 cigarettes for cigarettes weighing three pounds or less per thousand and the first $4.10 per 1,000 cigarettes of the tax received for cigarettes weighing more than three pounds per thousand is allocated: (1) 18.75 percent to the foundation school fund; and (2) 81.25 percent to the general revenue fund. (b) The revenue remaining after the deductions for the purposes provided by Section 154.602 [of this code] and allocation under Subsection (a) of the next $27.50 of tax received per 1,000 cigarettes for cigarettes weighing three pounds or less per thousand and the next $27.50 per 1,000 cigarettes of the tax received for cigarettes weighing more than three pounds per thousand [this section] is allocated to the general revenue fund. (c) The revenue remaining after the deductions for the purposes provided by Section 154.602 and allocation under Subsections (a) and (b) shall be deposited as follows: (1) the next $2.50 of tax received per 1,000 cigarettes weighing three pounds or less per thousand and the next $2.50 per 1,000 cigarettes of the tax received for cigarettes weighing more than three pounds per thousand shall be allocated to the tobacco cessation account established under Section 161.303, Health and Safety Code; and (2) the remaining revenue shall be allocated to the general revenue fund to be appropriated only for health and human services. (d) Notwithstanding Subsection (c), for the fiscal biennium that began September 1, 2003, the revenue remaining after the deductions for the purposes provided by Section 154.602 and allocation under Subsections (a) and (b) shall be deposited as follows: (1) the next $2.50 of tax received per 1,000 cigarettes weighing three pounds or less per thousand and the next $2.50 per 1,000 cigarettes of the tax received for cigarettes weighing more than three pounds per thousand shall be allocated to the credit of the tobacco cessation account established under Section 161.303, Health and Safety Code; and (2) the remaining revenue shall be allocated to the general revenue fund and may be appropriated only for: (A) the child health care plan program under Chapter 62, Health and Safety Code; (B) the medical assistance program under Chapter 32, Human Resources Code; (C) the in-home and family support program under Chapter 535, Health and Safety Code; (D) the children with special health care needs program under Chapter 35, Health and Safety Code; (E) community care programs; (F) community mental health services; (G) community care waiver programs; and (H) HIV & STD education and services. (e) Subsection (d) and this subsection expire September 1, 2005.
ARTICLE 2. RESTORATION OF STATE CHILD HEALTH PLAN
SECTION 2.01. Subchapter A, Chapter 62, Health and Safety Code, is amended by adding Section 62.0025 to read as follows: Sec. 62.0025. NET FAMILY INCOME. In this chapter, net family income means the amount of income established for a family after reduction for offsets for expenses such as child care and work-related expenses. Offsets for expenses shall be computed using the same standards applicable to the child health plan in the state fiscal year beginning September 1, 2002. SECTION 2.02. Section 62.101(b), Health and Safety Code, is amended to read as follows: (b) The commission shall establish income eligibility levels consistent with Title XXI, Social Security Act (42 U.S.C. Section 1397aa et seq.), as amended, and any other applicable law or regulations, and subject to the availability of appropriated money, so that a child who is younger than 19 years of age and whose net [gross] family income is at or below 200 percent of the federal poverty level is eligible for health benefits coverage under the program. [In addition, the commission may establish eligibility standards regarding the amount and types of allowable assets for a family whose gross family income is above 150 percent of the federal poverty level.] SECTION 2.03. Section 62.151, Health and Safety Code, is amended by adding Subsection (g) to read as follows: (g) The covered benefits provided under the child health plan must include vision benefits and dental benefits that, at minimum, are equivalent to the vision and dental benefits provided under the state employees group benefits program provided by Chapter 1551, Insurance Code. SECTION 2.04. Section 62.153(b), Health and Safety Code, is amended to read as follows: (b) Cost-sharing [Subject to Subsection (d), cost-sharing] provisions adopted under this section shall ensure that families with higher levels of income are required to pay progressively higher percentages of the cost of the plan. SECTION 2.05. The section heading of Section 62.154, Health and Safety Code, is amended to read as follows: Sec. 62.154. [WAITING PERIOD;] CROWD OUT. SECTION 2.06. Sections 62.154(a) and (d), Health and Safety Code, are amended to read as follows: (a) To the extent permitted under Title XXI of the Social Security Act (42 U.S.C. Section 1397aa et seq.), as amended, and any other applicable law or regulations, the child health plan must include a waiting period and [. The child health plan] may include copayments and other provisions intended to discourage: (1) employers and other persons from electing to discontinue offering coverage for children under employee or other group health benefit plans; and (2) individuals with access to adequate health benefit plan coverage, other than coverage under the child health plan, from electing not to obtain or to discontinue that coverage for a child. (d) The waiting period required by Subsection (a) must: (1) extend for a period of 90 days after the last date on which the applicant was covered under a health benefits plan; and (2) apply to a child who was covered by a health benefits plan at any time during the 90 days before the date of application for coverage under the child health plan[: [(1) the first day of the month in which the applicant is enrolled under the child health plan, if the date of enrollment is on or before the 15th day of the month; or [(2) the first day of the month after which the applicant is enrolled under the child health plan, if the date of enrollment is after the 15th day of the month]. SECTION 2.07. The following laws are repealed: (1) Section 62.002(4), Health and Safety Code; and (2) Section 62.153(d), Health and Safety Code. SECTION 2.08. If before implementing any provision of this article a state agency determines that a waiver or authorization from a federal agency is necessary for implementation of that provision, the agency affected by the provision shall request the waiver or authorization and may delay implementing that provision until the waiver or authorization is granted.
ARTICLE 3. RESTORATION OF CERTAIN MEDICAL ASSISTANCE BENEFITS
SECTION 3.01. Section 31.0032(d), Human Resources Code, is amended to read as follows: (d) This section does not prohibit the Texas Workforce Commission, the Health and Human Services Commission, or any health and human services agency, as defined by Section 531.001, Government Code, from providing medical assistance, child care, or any other related social or support services for an individual who is eligible for financial assistance but to whom that assistance is not paid because of the individual's failure to cooperate. SECTION 3.02. Section 32.024(i), Human Resources Code, as amended by Chapters 198 and 1251, Acts of the 78th Legislature, Regular Session, 2003, is reenacted and amended to read as follows: (i) The department in its adoption of rules shall establish a medically needy program that serves pregnant women, children, and caretakers who have high medical expenses[, subject to availability of appropriated funds]. SECTION 3.03. Section 32.024(w), Human Resources Code, is amended to read as follows: (w) The department shall set a personal needs allowance of not less than $60 [$45] a month for a resident of a convalescent or nursing home or related institution licensed under Chapter 242, Health and Safety Code, personal care facility, ICF-MR facility, or other similar long-term care facility who receives medical assistance. The department may send the personal needs allowance directly to a resident who receives Supplemental Security Income (SSI) (42 U.S.C. Section 1381 et seq.). This subsection does not apply to a resident who is participating in a medical assistance waiver program administered by the department. SECTION 3.04. Section 32.027, Human Resources Code, is amended by adding Subsection (l) to read as follows: (l) The department shall assure that a recipient of medical assistance under this chapter may select a licensed podiatrist to perform any foot health care service or procedure covered under the medical assistance program if the podiatrist is authorized by law to perform the service or procedure. This subsection shall be liberally construed. SECTION 3.05. The following laws are repealed: (1) Section 32.027(b), Human Resources Code; and (2) Section 31.0032(c), Human Resources Code.
ARTICLE 4. TOBACCO CESSATION
SECTION 4.01. Subchapter O, Chapter 161, Health and Safety Code, is amended by adding Section 161.303 to read as follows: Sec. 161.303. TOBACCO CESSATION ACCOUNT. The tobacco cessation account is an account in the general revenue fund composed of amounts allocated to the account under Section 154.603, Tax Code, other money transferred to the fund at the direction of the legislature, and gifts and grants contributed to the fund. Money in the fund may be appropriated only to the department for programs to reduce the use of cigarettes and tobacco products in this state, including: (1) smoking cessation programs; (2) enforcement of Subchapters H, K, and N, or other laws relating to distribution of cigarettes or tobacco products to minors or use of cigarettes or tobacco products by minors; (3) public awareness programs relating to use of cigarettes and tobacco products, including general educational programs and programs directed toward youth; and (4) specific programs for communities traditionally targeted, by advertising and other means, by companies that sell cigarettes or tobacco products. SECTION 4.02. The heading of Subchapter O, Chapter 161, Health and Safety Code, is amended to read as follows:
SUBCHAPTER O. CERTAIN TOBACCO-RELATED PROGRAMS [PREVENTION OF TOBACCO USE BY MINORS]
ARTICLE 5. APPROPRIATION
SECTION 5.01. In addition to other amounts appropriated to the Health and Human Services Commission for all or part of the state fiscal biennium beginning September 1, 2003, the amount of $130 million is appropriated out of the children's health insurance program account in the general revenue fund for the state fiscal biennium beginning September 1, 2003, to the Health and Human Services Commission to restore benefits under and eligibility for the state child health program to the levels provided during the fiscal year beginning September 1, 2002, consistent with the changes in law made by Article 2 of this Act. SECTION 5.02. In addition to other amounts appropriated to the Texas Department of Health for all or part of the state fiscal biennium beginning September 1, 2003, the total amount of money deposited to the credit of the tobacco cessation account under Section 161.303, Health and Safety Code, as added by this Act, is appropriated out of that account for the state fiscal biennium beginning September 1, 2003, to the Texas Department of Health for the purposes specified in that section. SECTION 5.03. In addition to other amounts appropriated to the Texas Department of Human Services for all or part of the state fiscal biennium beginning September 1, 2003, the following amounts are appropriated out of the general revenue fund to the Texas Department of Human Services for the state fiscal biennium beginning September 1, 2003: (1) $123 million to restore the number of clients and hours assumed in the community care programs to fiscal year 2003 levels; (2) $32 million to restore the number of slots for Community Care Waiver Programs to fiscal year 2003 levels; and (3) $8.1 million to restore the personal needs allowance to not less than $60 a month for a resident of a convalescent or nursing home, personal care facility, ICF-MR facility, or other similar long-term care facility who receives such an allowance under the state Medicaid program. SECTION 5.04. In addition to other amounts appropriated to the Health and Human Services Commission for all or part of the state fiscal biennium beginning September 1, 2003, the following amounts are appropriated out of the general revenue fund to the Health and Human Services Commission for the state fiscal biennium beginning September 1, 2003: (1) $124 million to reimburse Medicaid providers for the fiscal year beginning September 1, 2004, at the partially restored rate at which, under the applicable budget execution order adopted by the governor and Legislative Budget Board acting under Chapter 317, Government Code, and Section 11.28, Article IX, Chapter 1330, Acts of the 78th Legislature, Regular Session, 2003 (the General Appropriations Act), as amended by Chapters 8 and 10, Acts of the 78th Legislature, 3rd Called Session, 2003, the providers are reimbursed under the state Medicaid program during the fiscal year beginning September 1, 2003; (2) $28.6 million to restore the Medically Needy Program to assist approximately 10,000 Texans each month in paying health care expenses; (3) $27.4 million to restore Medicaid coverage for approximately 8,300 pregnant women on an average monthly basis; (4) $27.1 million to restore the following optional benefits for adult Medicaid recipients to fiscal year 2003 levels: mental health benefits and benefits for eyeglasses, hearing aids, and podiatric care; and (5) $17.5 million to restore Medicaid benefits for adult recipients of Temporary Assistance for Needy Families. SECTION 5.05. In addition to other amounts appropriated to the Texas Department of Mental Health and Mental Retardation for all or part of the state fiscal biennium beginning September 1, 2003, the following amounts are appropriated out of the general revenue fund to the Texas Department of Mental Health and Mental Retardation for the state fiscal biennium beginning September 1, 2003: (1) $36.6 million for community mental health services; and (2) $17.3 million to restore In-Home and Family Support Program services to assist more than 2,946 Texans in living independently. SECTION 5.06. In addition to other amounts appropriated to the Texas Department of Health for all or part of the state fiscal biennium beginning September 1, 2003, the following amounts are appropriated out of the general revenue fund to the Texas Department of Health for the state fiscal biennium beginning September 1, 2003: (1) $14.9 million to restore HIV & STD Education and Services to the levels provided during the fiscal year beginning September 1, 2002; and (2) $6.6 million to provide services to additional chronically ill and disabled children who are eligible and on the waiting list for the Children with Special Health Care Needs Program. SECTION 5.07. Rider 37 following the appropriations to the Texas Department of Human Services on page II-77, Chapter 1330, Acts of the 78th Legislature, Regular Session, 2003 (the General Appropriations Act), is amended to read as follows: 37. Community Care Waiver Slots. It is the intent of the Legislature that the Department of Human Services will not expand the base number of appropriated waiver slots through Rider 28 transfers. Clients utilizing Rider 28 shall remain funded separately through transfers from the Nursing Facility strategy, and those slots shall not count against the total appropriated community care slots. Rider 28 funding through the nursing facility strategy shall be maintained for those clients as long as the individual client remains in the transferred slot. When a Rider 28 client leaves a waiver program, any remaining funding for the biennium shall remain in the nursing facility strategy. [If the department determines available revenue within community care strategies requires a reduction in the base number of slots for waiver programs, the department shall utilize attrition to meet appropriated levels.]
ARTICLE 6. EFFECTIVE DATE
SECTION 6.01. This Act takes effect on the first day of the first month immediately following the first day on which this Act may take effect as provided by Section 39, Article III, Texas Constitution.