05RS HB176

HB176

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HB 176 (BR 59) - T. Burch

     AN ACT relating to revenue and taxation, making an appropriation therefor, and declaring an emergency.
     Amend KRS 138.130 to add smokeless and other tobacco products to definitions; amend KRS 138.140 to establish a $.75 surtax on a pack of cigarettes and require the amount of surtax to be adjusted to the national weighted average of cigarette excise taxes every third year on June 1, define weighted average, and require the Revenue Cabinet to promulgate administrative regulations; establish a wholesale tax of 32% on smokeless and other tobacco products; require revenue to be deposited into the tobacco use prevention and health care fund; create a new section of KRS Chapter 138 to require retailers and wholesalers to file the inventory of all cigarette packages with tax stamps on May, 31, 2005, with the Revenue Cabinet and to pay the surtax on stamped and unstamped cigarette packs on that date; amend KRS 138.146 to specify no compensation for the new surtax and technical changes; amend KRS 138.165 to make for technical changes; amend KRS 138.195 to require written records on smokeless or other tobacco products, require payment of the wholesale tax by the 20th of each month, and require a tax return whether or not tax is due; create a new section of KRS Chapter 138 to hold corporate officers personally and individually liable for the surtax and wholesale tax and related interest and penalties; amend KRS 248.652 to specify that the Agricultural Diversification and Development Fund relates to the $.03 cigarette tax; amend KRS 438.335 to specify that the Department of Agriculture retains $.0005 of the $.03 cigarette tax; Amend KRS 438.337 to specify that the Department of Alcoholic Beverage Control retains $.0005 of the $.03 cigarette tax; create a new section of KRS Chapter 41 to establish the tobacco use prevention and health care fund from receipts of the new cigarette surtax and wholesale tax and appropriate 15% of the funds for smoking prevention and cessation and 85% for the Small Employer Health Reinsurance Program; create a new section of KRS 304-17A to define qualifying small employer and qualifying group health insurance contract; create a new section of KRS 304-17A to establish the Kentucky Small Employer Health Reinsurance Program and oversight board, specify membership, terms, duties; permit small employers to offer health insurance contracts to employees and require insurers to participate in the reinsurance program; create a new section of KRS 304-17A to specify benefits and covered services of health insurance contracts offered through the reinsurance program; require employer to pay 50% of the premium for covered employees and require coverage for employees earning $30,000 or less; specify premium rate calculations; create a new section of KRS 304-17A to establish the small employer stop loss fund to reimburse participating insurers for 50% of claims paid and specify conditions and limits of reimbursement; require administrative regulations by the board; permit pro-rata distribution of reimbursement if claims exceed funds available; require data, reports, and actuarial estimations; permit board to suspend enrollment if anticipated expenditures exceed funds available; require that the determination of premium rates factor in the availability of reimbursement from the small employer stop loss fund; permit the board to employ an organization to administer the stop loss fund and require annual reports to the Interim Joint Committees on Banking and Insurance and Appropriations and Revenue; permit the administrator to purchase stop loss insurance and reinsurance; permit expenditures up to 10% of the fund for awareness, outreach, and marketing. EMERGENCY, APPROPRIATION.

     Feb 1-introduced in House
     Feb 2-to Appropriations and Revenue (H)


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