SB0044 Summary

• Creates the Healthcare Provider Relief Fund as a special fund in the State treasury to reimburse providers under medical assistance, Children's Health Insurance Program, Covering All Kids Health Insurance Act, and pharmaceutical assistance programs, with funds protected from sweeps and administrative charges.

• Increases cigarette tax rates beginning September 1, 2009 (25 mills per cigarette) and September 1, 2010 (additional 25 mills per cigarette), with revenue directed to Tax Compliance and Administration Fund ($54,167 monthly) and Healthcare Provider Relief Fund (remainder).

• Amends the Cigarette Tax Act definition of cigarettes to clarify that wrappers must be made of material other than whole tobacco leaf, and establishes transition rules for distributors with existing stamped inventory.

• Amends the Cigarette Use Tax Act with identical tax rate increases (25 mills effective September 1, 2009 and 2010) and adds exemption for not-for-profit research institutions conducting tobacco health effect tests.

• Exempts not-for-profit research institutions testing tobacco health effects from both the use tax definition and distributor classification in both tax acts.