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SENATE TRANSPORTATION & PUBLIC UTILITIES & TECHNOLOGY
STANDING COMMITTEE
WEDNESDAY, FEBRUARY 25, 2004, 4:00 P.M.
ROOM 403, STATE CAPITOL
Members Present: Sen. Sheldon Killpack, Chair
Sen. Dan Eastman
Sen. Karen Hale
Sen. Ed P. Mayne
Sen. Howard A. Stephenson
Sen. Carlene M. Walker
Members Excused: Sen. Bill Hickman
Sen. Peter C. Knudson
Staff Present: Stewart E Smith, Policy Analyst
Karen Allred, Secretary
Public Speakers Present: Michael Hales, Director, CHIP, Utah Department of Health
Karen Crompton, Executive Director, Voices for Utah Children
Pamela Silberman, Utah Issues
Judi Hilman, Research Director, Utah Issues
Kris Fausen, Co-director, Legislative Coalition for People with Disabilities
Jack Tanner, Executive Director, Healthcare Network
Kiric Olsen, CEO, Molina Healthcare
A list of visitors and a copy of handouts are filed with the committee minutes.
Committee Chair Killpack called the meeting to order at 4:45 p.m.
MOTION: Sen. Eastman moved to approve the minutes of February 20, 2004.
The motion passed unanimously with Sens. Stephenson and Hale absent for the vote.
1. S.B. 235 Retirement for Airport Police (R. Allen)
Sen. Allen explained the bill.
MOTION: Sen. Mayne moved to pass the bill out favorably.
The motion passed unanimously with Sen. Stephenson absent for the vote.
2. 1st Sub. H.B. 105 Continuing Education for Contractors (J. S. Adams)
Rep. Adams explained the bill.
MOTION: Sen. Mayne moved to pass the bill out favorably.
The motion passed unanimously with Sen. Stephenson absent for the vote.
3. H.B. 244 Amendments to Asset Testing for Medicaid (D. Hogue)
MOTION: Sen. Hale moved to adopt the following amendments:
1. Page 1, Line 1: After "TO" insert "AND FUNDING FOR"
2. Page 1, Line 11: After "guidelines" insert "and funds the removal of the asset test"
3. Page 1, Line 16: After "eligibility" delete "." and insert "; and
. increases the cigarette tax by 4 cents a pack."
4. Page 1, Line 21: After line 21 insert:
"AMENDS:
59-14-204, as last amended by Chapter 248, Laws of Utah 2002"
5. Page 2, Line 33: After line 33 insert:
"Section 2. Section 59-14-204 is amended to read:
59-14-204 . Tax basis -- Rate -- Future increase -- Restricted account -- Use of revenues.
(1) Except for cigarettes described under Section 59-14-210 , there is levied a tax upon the sale, use, or storage of cigarettes in the state.
(2) The rates of the tax levied under Subsection (1) are:
(a) [
(b) [
(3) The tax levied under Subsection (1) shall be paid by the manufacturer, jobber, distributor, wholesaler, retailer, user, or consumer.
(4) The tax rates specified in this section shall be increased by the commission by the same amount as any future reduction in the
federal excise tax on cigarettes.
(5) (a) There is created within the General Fund a restricted
account known as the "Cigarette Tax Restricted Account."
(b) Beginning on July 1, 1998, $250,000 of the revenues generated
by the increase in the cigarette tax under this section enacted
during the 1997 Annual General Session shall be annually
deposited into the account.
(c) The Department of Health shall expend the funds deposited in
the account under Subsection (5)(b) for a tobacco prevention and
control media campaign targeted towards children.
(d) The following revenue generated from the tax increase
imposed under Subsection (1) during the 2002 General Session
shall be deposited in the Cigarette Tax Restricted Account:
(i) 22% of the revenue to be annually appropriated to the
Department of Health for tobacco prevention, reduction, cessation,
and control programs;
(ii) 15% of the revenue to be annually appropriated to the
University of Utah Health Sciences Center for the Huntsman
Cancer Institute for cancer research; and
(iii) 21% of the revenue to be annually appropriated to the
University of Utah Health Sciences Center for medical education at
the University of Utah School of Medicine.
(e) Any balance remaining in the Cigarette Tax Restricted
Account at the end of the fiscal year shall be appropriated during
the next fiscal year for the purposes set forth in Subsections
(5)(d)(i) through (5)(d)(iii) in proportion to the amount of revenue
deposited into the account for each purpose.
(f) The Legislature shall give particular consideration to
appropriating any revenues resulting from the change in tax rates
under Subsection (2) adopted during the 2002 Annual General
Session and not otherwise appropriated pursuant to Subsection
(5)(d) to enhance Medicaid provider reimbursement rates and
medical coverage for the uninsured.
(g) Any program or entity that receives funding under Subsection
(5)(d) shall provide an annual report to the Health and Human
Services Interim Committee no later that September 1 of each year.
The report shall include:
(i) the amount funded;
(ii) the amount expended;
(iii) a description of the effectiveness of the program; and
(iv) if the program is a tobacco cessation program, the report
required in Section
63-97-401
.
(h) The revenue generated from the tax increase imposed under
Subsection (1) during the 2004 General Session shall be deposited
into the Cigarette Tax Restricted Account and shall be annually
appropriated to the Department of Health for the purpose of
eliminating the Medicaid asset test in compliance with Section
26-18-3.2
.
"
The motion passed unanimously with Sen. Stephenson absent for the vote.
Speaking in support of the bill were: Michael Hales, Director, CHIP, Utah Department of
Health; Karen Crompton, Executive Director, Voices for Utah Children; Pamela Silberman,
Utah Issues; Judi Hilman, Research Director, Utah Issues; Kris Fausen, Co-director,
Legislative Coalition for People with Disabilities; Jack Tanner, Executive Director,
Healthcare Network; and Kiric Olsen, CEO, Molina Healthcare.
MOTION: Sen. Hale moved to pass the bill out favorably as amended.
The motion passed with Sens. Killpack, Walker, Hale and Mayne voting in favor of the bill,
and Sens. Eastman and Stephenson voting in opposition.
MOTION:
Sen. Walker moved to adjourn.
The motion passed unanimously.
Chair Killpack adjourned the meeting at 5:35 p.m.
___________________________________
Sen. Sheldon L. Killpack, Committee Chair