Bill Text: IL HB2914 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Creates the Healthy Eating Active Living (HEAL) Act. Imposes a tax on distributors of sugar-sweetened beverages in the State at the rate of $0.01 per ounce. Contains provisions concerning the distribution of the proceeds from the tax. Creates a multi-sector Advisory Council for Health and Wellness to govern the distribution of the proceeds. Amends the State Finance Act to create the Illinois Wellness Fund. Effective immediately.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB2914 Detail]

Download: Illinois-2017-HB2914-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB2914 Introduced , by Rep. Robyn Gabel SYNOPSIS AS INTRODUCED:
New Act
35 ILCS 1010/1-45
30 ILCS 105/5.878 new
Creates the Healthy Eating Active Living (HEAL) Act. Imposes a tax on distributors of sugar-sweetened beverages in the State at the rate of $0.01 per ounce. Contains provisions concerning the distribution of the proceeds from the tax. Creates a multi-sector Advisory Council for Health and Wellness to govern the distribution of the proceeds. Amends the State Finance Act to create the Illinois Wellness Fund. Effective immediately.
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A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Healthy Eating Active Living (HEAL) Act.
Section 5. Findings and purpose. The General Assembly finds
that:
Over the past 30 years, the obesity rate in the United
States has substantially increased. The prevalence of adult
obesity has more than doubled during that time. According to
statistics compiled by the Trust for America's Health, nearly
31% of Illinois' adult residents in 2015 were considered obese
(body mass index (BMI) of 30 and above) and the rate was even
higher among African American (40.7%) and Hispanic (36%)
residents.
For children, the increase in obesity has been even more
dramatic, with the obesity rate among children ages 6-11 more
than quadrupling over the last 4 decades. The State of Illinois
is not immune to the problem. Over 19% of Illinois children who
are 10 to 17 years of age are obese, the ninth worst rate in the
nation.
Obese children are at least twice as likely as non-obese
children to become obese adults. Research indicates that the

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likelihood of an obese child becoming an obese adult increases
with age; adolescents who are obese have a greater likelihood
of being obese in adulthood as compared to younger children.
The obesity epidemic has led to a dramatic increase in
obesity-related health conditions, such as type 2 diabetes,
asthma, and heart disease. These health conditions cost the
nation billions of dollars in health care costs and lost
productivity. Overweight and obesity account for $147 billion
in health care costs nationally, or 9% of all medical spending
per year. Obesity-related annual medical expenditures in the
State of Illinois are estimated at $6.3 billion dollars, with
over $1 billion of that as a cost to the State Medicaid
program.
Numerous studies have established a link between obesity
and consumption of sugar-sweetened beverages such as soft
drinks, energy drinks, sweet teas, and sports drinks. One study
found that just one sugary drink per day increased a child's
odds of becoming obese by 60%. Rigorous scientific studies show
that consuming sugary drinks leads to obesity and diabetes more
than any other food category. One meta analysis of 8 studies
examining the role of sugar-sweetened beverage consumption on
health found that consumption was significantly associated
with type 2 diabetes based on over 15,000 reported cases of
this condition. Additionally, consumption of sugar-sweetened
beverages has been linked to several diseases independent of a
person's weight status, including type 2 diabetes and heart

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disease, making sugary drinks especially harmful to a person's
health. A 2014 study showed that regular consumption of sugary
drinks (at least 7 drinks per week) was associated with an
increased risk for death from cardiovascular disease. Adults
who drink 1 to 2 servings of sugary drinks per day are 26% more
likely to develop type 2 diabetes than those who drink 0 to 1
per month. A 2015 study in the journal Circulation suggested
that sugar-sweetened beverages are linked to 25,000 American
deaths per year.
Research has found that sugary drinks have a unique and
harmful effect on health. Liquid calories don't trigger a
person's sense of feeling "full", and contribute to excess
calorie consumption without the person being aware.
Consumption of sugar-sweetened beverages has gone up over
500% in the last 50 years, and those beverages are now the
number one source of added sugar in the American diet (51% of
added sugars when considering soda, energy drinks, sports
drinks, fruit drinks, and sweetened teas). A study of a 5-year
period between 1999 and 2004 showed that children and
adolescents consumed 10-15% of their daily caloric intake from
sugar-sweetened beverages, which offer little or no
nutritional value and massive quantities of added sugars. For
example, a single 12-ounce can of soda contains the equivalent
of approximately 10 teaspoons of sugar; the American Heart
Association recommends that children over the age of 2 and
women consume no more than 6 teaspoons of added sugar per day

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and men consume no more than 9 teaspoons of added sugar per
day. The World Health Organization recommends limiting added
sugar intake to no more than 10% of an individual's total
energy intake. Teenagers and young adults drink more sugary
drinks than other age groups, and low-income persons consume
more sugary drinks in relation to their overall diet than those
with higher income.
In its adult and pediatric nutrition recommendations, the
American Heart Association recommends that no-calorie and
low-calorie beverages like water, diet soft drinks, fat free or
low fat milk, and other beverages that have 5 grams or less of
added caloric sweetener per 12 fluid ounces are better choices
than full calorie soft drinks, and Americans should limit the
amount of added sugars in the foods they eat. The U.S.D.A. 2010
Dietary Guidelines for Americans also recommends limiting
added sugars in the diet and reducing intake of sugar-sweetened
beverages.
The Institute of Medicine recommends a multi-pronged
approach to obesity prevention, including: integrating
physical activity opportunities into communities, making
healthy food and beverages available everywhere, adopting
policies and practices to reduce sugar-sweetened beverage
consumption, improving marketing and messaging to the public
regarding adopting a healthy lifestyle, expanding the role of
health care providers, insurers, and employers in obesity
prevention, and working to improve school health and wellness.

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Studies have shown that, when compared with more affluent
communities, low-income communities have less access to fresh,
affordable food, contain more fast food places in the
communities and near their schools, and have less access to
safe places to get physical activity, including access to fewer
adequate sidewalks. Additionally, the American Medical
Association adopted Clinical Practice Guidelines for the
treatment of pediatric overweight, which the American Academy
of Pediatrics has adopted and recommends to providers.
A study by researchers at the University of Chicago found
that a penny-per-ounce excise tax on sugar-sweetened beverages
in Illinois could result in a 23.5% reduction in
sugar-sweetened beverage consumption, 185,127 fewer obese
Illinoisans (a 9.3% reduction in youth obesity and 5.2%
reduction in adult obesity), 3,442 fewer incidences of
diabetes, and a $150.8 million reduction in obesity-related
healthcare costs in the first year. Another study found that
reducing obesity by 5% in Illinois could save Illinois $9
billion over the next 10 years. The World Health Organization
recommends that governments impose a tax on sugar-sweetened
beverages to address obesity. The tax is estimated to raise
over $600 million in the first year in Illinois.
It is the intent of the General Assembly, by adopting this
Act and creating an Illinois Wellness Fund to provide targeted
prevention initiatives in Illinois communities and additional
health and prevention funding to Medicaid, to diminish the

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human and economic costs of sugar-sweetened beverages,
obesity, and related chronic disease in the State of Illinois.
This Act is intended to create a dedicated revenue source for
programs designed to prevent and treat obesity and related
chronic diseases by creating and implementing expanded
opportunities for Illinoisans to be healthy, especially in
high-need communities, and to discourage excessive consumption
of sugar-sweetened beverages by increasing the price of these
products, thereby reducing the health and economic burden of
sugar-sweetened drinks in Illinois.
Section 10. Definitions. For purposes of this Act:
"Advisory Council" means the Advisory Council for Health
and Wellness established under Section 70.
"Bottle" means any closed or sealed container regardless of
size or shape, including, without limitation, those made of
glass, metal, paper, plastic, or any other material or
combination of materials.
"Bottled sugar-sweetened beverage" means any
sugar-sweetened beverage contained in a bottle that is ready
for consumption without further processing such as, without
limitation, dilution or carbonation.
"Caloric sweetener" means any caloric substance suitable
for human consumption which adds calories to the diet of a
person who consumes that substance, is used as an ingredient of
a beverage, syrup, or powder, and includes, without limitation,

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sucrose, fructose, glucose, fruit juice concentrate, or other
sugars. "Caloric sweetener" excludes non-caloric sweeteners.
"Consumer" means a person who purchases a sugar-sweetened
beverage for consumption and not for sale to another.
"Department" means the Department of Revenue.
"Distribute" means the act, by any person, including
manufacturers and wholesale dealers, of receiving, storing,
manufacturing, or bottling sugar-sweetened beverages, syrups,
or powders for sale to retailers doing business in the State,
whether or not that person also sells those products to
consumers.
"Distributor" means any person, including manufacturers
and wholesale dealers, who distributes bottled sugar-sweetened
beverages, syrups, or powders, for sale to retailers doing
business in the State, whether or not that person also sells
such products to consumers.
"Fund" means the Illinois Wellness Fund, established
pursuant to Section 55.
"High-need population" means a population or community,
defined geographically or as a group, designated as a high-need
population by the Department of Public Health by rule pursuant
to subsection (b) of Section 60 of this Act.
"Non-caloric sweetener" means any non-caloric substance
suitable for human consumption which does not add calories to
the diet of a person who consumes that substance, is used as an
ingredient of a beverage, syrup, or powder, and includes,

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without limitation, aspartame, saccharin, stevia, and
sucralose. "Non-caloric sweetener" excludes caloric
sweeteners.
"Person" means any natural person, partnership,
cooperative association, limited liability company,
corporation, personal representative, receiver, trustee,
assignee, or any other legal entity.
"Place of business" means any place where sugar-sweetened
beverages, syrups, or powders are manufactured or received for
sale in the State.
"Powders" means any solid mixture of ingredients used in
making, mixing, or compounding sugar-sweetened beverages by
mixing the powder with any one or more other ingredients,
including without limitation water, ice, syrup, simple syrup,
fruits, vegetables, fruit juice, vegetable juice, carbonation
or other gas. A powder which indicates on the label that it can
be mixed with water is subject to the tax. Notwithstanding any
other provision, a powder is not subject to the tax if the
label contains either or both of the following instructions:
(1) that the powder should not be mixed with water; or (ii)
that the powder is intended by the manufacturer to be mixed
only with alcohol or milk.
"Retailer" means any person who sells or otherwise
dispenses in the State a sugar-sweetened beverage to a consumer
whether or not that person is also a distributor as defined in
this Section.

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"Sale" means the transfer of title or possession for
valuable consideration regardless of the manner by which the
transfer is completed.
"Simple syrup" means a substance comprised of one or more
caloric sweeteners and water or ice.
"State" means the State of Illinois.
"Sugar-sweetened beverage" means any nonalcoholic
beverage, carbonated or noncarbonated, which is intended for
human consumption and contains more than 5 grams of caloric
sweetener per 12 fluid ounces. As used in this definition,
"nonalcoholic beverage" means any beverage that contains less
than one-half of one percent alcohol per volume. The term
"sugar-sweetened beverage" does not include:
(1) beverages sweetened solely with non-caloric
sweeteners;
(2) beverages sweetened with 5 grams or less of caloric
sweeteners per 12 fluid ounces;
(3) beverages consisting of 100% natural fruit or
vegetable juice with no caloric sweetener; for purposes of
this paragraph, "natural fruit juice" and "natural
vegetable juice" mean the original liquid resulting from
the pressing of fruits or vegetables, juice concentrate, or
the liquid resulting from the dilution with water of
dehydrated natural fruit juice or natural vegetable juice;
(4) beverages in which milk, or soy, rice, or similar
milk substitute, is the primary ingredient or the first

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listed ingredient on the label of the beverage; for
purposes of this Act, "milk" means natural liquid milk
regardless of animal or plant source or butterfat content,
natural milk concentrate, whether or not reconstituted,
regardless of animal or plant source or butterfat content,
or dehydrated natural milk, whether or not reconstituted
and regardless of animal or plant source or butterfat
content;
(5) coffee or tea without caloric sweetener;
(6) infant formula;
(7) medically necessary foods, as defined in the
federal Orphan Drug Act; and
(8) water without any caloric sweeteners.
"Syrup" means a liquid mixture of ingredients used in
making, mixing, or compounding sugar-sweetened beverages using
one or more other ingredients including, without limitation,
water, ice, a powder, simple syrup, fruits, vegetables, fruit
juice, vegetable juice, carbonation, or other gas. A syrup
which indicates on the label that it can be mixed with water is
subject to the tax. Notwithstanding any other provision, a
syrup is not subject to the tax if the label contains either or
both of the following instructions: (1) that the syrup should
not be mixed with water; or (ii) that the syrup is intended by
the manufacturer to be mixed only with alcohol or milk.
Section 15. Permit required.

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(a) Beginning May 1, 2017, every distributor doing business
in the State who wishes to engage in the business of selling
sugar-sweetened beverages, syrups, or powders subject to tax
under this Act shall file with the Department an application
for a permit to engage in such business. An application shall
be filed for each place of business owned and operated by the
distributor. An application for a permit shall be filed on
forms to be furnished by the Department for that purpose. Each
such application shall be signed and verified and shall state:
(1) the name and federal tax identification number of the
applicant; (2) the address of the applicant's principal place
of business; (3) the address of the principal place of business
from which the applicant engages in the business of
distributing sugar-sweetened beverages, syrups, or powders to
retailers in this State and the addresses of all other places
of business, if any (enumerating such addresses, if any, in a
separate list attached to and made a part of the application),
from which the applicant engages in the business of
distributing sugar-sweetened beverages, syrups, or powders to
retailers in this State; (4) the name and address of the person
or persons who will be responsible for filing returns and
payment of taxes due under this Act; (5) in the case of a
corporation, the name, title, and social security number of
each corporate officer; (6) in the case of a limited liability
company, the name, social security number, and FEIN number of
each manager and member; and (7) such other information as the

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Department may reasonably require. The application shall
contain an acceptance of responsibility signed by the person or
persons who will be responsible for filing returns and payment
of the taxes due under this Act.
(b) The Department may deny a permit to any applicant if a
person who is named as the owner, a partner, a manager or
member of a limited liability company, or a corporate officer
of the applicant on the application for the certificate of
registration, is or has been named as the owner, a partner, a
manager or member of a limited liability company, or a
corporate officer, on the application for the permit or
certificate of registration of a retailer under the Retailers'
Occupation Tax Act that is in default for moneys due under this
Act or any other tax or fee Act administered by the Department.
For purposes of this paragraph only, in determining whether a
person is in default for moneys due, the Department shall
include only amounts established as a final liability within
the 20 years prior to the date of the Department's notice of
denial of a certificate of registration. The Department, in its
discretion, may require that the application for permit be
submitted electronically.
(c) Upon receipt of an application and the annual permit
fee of $250, the Department may issue to the applicant, for the
place of business designated, a permit, authorizing the sale of
sugar-sweetened beverages, syrups, and powders in the State. No
distributor shall sell any sugar-sweetened beverage, syrup, or

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powders without first obtaining a permit to do so under this
Act. Permits issued pursuant to this Section shall expire one
year from the date of issuance and may be renewed annually.
Fees shall be deposited into the Tax Compliance and
Administration Fund.
(d) A permit may not be transferred or assigned from one
person to another, and a permit shall at all times be
prominently displayed in a distributor's place of business. The
Department may refuse to issue a permit to any person
previously convicted of violations of this Act under such
procedures as the Department may establish by rule.
(e) The Department may, in its discretion, issue the permit
electronically.
Section 20. Tax imposed.
(a) Beginning on May 1, 2017, there is imposed a tax on
every distributor for the privilege of selling the products
governed by this Act in the State. The tax shall be imposed at
the rate of $0.01 per ounce of bottled sugar-sweetened
beverages distributed to a retailer in the State. The tax on
syrup and powder distributed to a retailer in the State, either
as syrup or powder or as a sugar-sweetened beverage derived
from that syrup or powder, is equal to $0.01 per ounce for each
ounce of sugar-sweetened beverage produced from that syrup or
powder. For purposes of calculating the tax, the volume of
sugar-sweetened beverage produced from syrup or powder shall be

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the larger of (i) the largest volume resulting from use of the
syrup or powder according to any manufacturer's instructions or
(ii) the volume actually produced by the retailer. The taxes
imposed by this Section are in addition to any other taxes that
may apply to persons or products subject to this Act.
(b) If and only if the tax imposed under subsection (a), or
the application thereof to any person or circumstance, shall,
for any reason, be adjudged by a court of competent
jurisdiction to violate the Constitution of the United States
or the Constitution of the State of Illinois, or otherwise be
adjudged invalid, the following language shall be used to
replace subsection (a) for the purpose of arriving at
satisfactory implementation of the Act:
(1) The tax shall be imposed at the rate of $0.004 per
gram of caloric sweetener in bottled sugar-sweetened
beverages containing more than 5 grams of caloric sweetener
per 12 ounces of liquid (or 0.41 grams per ounce) sold or
transferred to a retailer in the State.
(2) The tax on syrup and powder sold or transferred to
a retailer in the State, either as syrup or powders or as a
sugar-sweetened beverage derived from that syrup or
powders, is equal to $0.004 per gram of caloric sweetener
in sugar-sweetened beverages that contains more than 5
grams of caloric sweetener per 12 ounces of liquid (or 0.41
grams per ounce) produced from that syrup or powder; for
purposes of calculating the tax, the volume of

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sugar-sweetened beverage produced from syrup or powders
shall be the larger of (i) the largest volume resulting
from use of the syrup or powder according to any
manufacturer's instructions or (ii) the volume actually
produced by the retailer.
(c) A retailer that sells bottled sugar-sweetened
beverages, syrups, or powders in the State to a consumer, on
which the tax imposed by this Section has not been paid by a
distributor, is liable for the tax imposed in subsection (a) or
(b), as applicable, at the time of sale to a consumer.
Section 30. Report of sales and tax remittances.
(a) Any distributor or retailer liable for the tax imposed
by this Act shall, on or before the twentieth day of each
calendar month, return to the Department a statement containing
its name and place of business, the quantity of sugar-sweetened
beverages, syrup, and powders subject to the tax imposed by
this Act sold or offered for sale in the month preceding the
month in which the report is due, and any other information
required by the Department, along with the tax due.
(b) If the taxpayer's average monthly tax liability to the
Department under this Act, was $20,000 or more during the
preceding 4 complete calendar quarters, he shall file a return
with the Department each month by the twentieth day of the next
month following the month during which such tax liability is
incurred and shall make payment to the Department on or before

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the 7th, 15th, 22nd, and last day of the month during which
such liability is incurred.
(c) The Department, in its discretion, may require that
returns be submitted and payments be made electronically.
Section 35. Records of distributors. Every distributor and
every retailer subject to this Act shall maintain for not less
than 4 years accurate books and records, showing all
transactions that gave rise, or may have given rise, to tax
liability under this Act. Such records are subject to
inspection by the Department at all reasonable times during
normal business hours.
Section 40. Exemptions. The following shall be exempt from
the tax imposed under this Act:
(1) Bottled sugar-sweetened beverages, syrups, and
powders sold by a distributor or a retailer expressly for
resale or consumption outside of the State.
(2) Bottled sugar-sweetened beverages, syrups, and
powders sold by a distributor to another distributor that
holds a permit issued under Section 15. For this exemption
to apply, the sales invoice shall clearly indicate that
this subsection applies to the sale.
(3) Bottled sugar-sweetened beverages, syrups, and
powders sold to a person who is both a distributor and a
retailer. For this exemption to apply, the tax shall be

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levied when the purchasing distributor-retailer resells
the product to a retailer or a consumer. This exemption
does not apply to any other sale to a retailer.
At no time shall the tax imposed under this Act be imposed
more than once per product sold.
Section 45. Penalties.
(a) Any distributor, retailer, or other person subject to
the provisions of this Act who fails to pay the entire amount
of tax imposed by this Act by the date that payment is due,
fails to submit a report or maintain records required by this
Act, does business in the State of Illinois without first
obtaining a permit as required by this Act, or violates any
other provision of this Act, or rules and regulations adopted
by the Department for the enforcement of this Act, shall be
guilty of a misdemeanor and shall also be liable for the
penalties set forth and incorporated by reference into this
Section.
(b) Incorporation by reference. All of the provisions of
Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
6c, 8, 9, 10, 11, 11a, and 12 of the Retailers' Occupation Tax
Act, and all applicable provisions of the Uniform Penalty and
Interest Act that are not inconsistent with this Act, apply to
distributors of sugar-sweetened beverages to the same extent as
if those provisions were included in this Act. References in
the incorporated Sections of the Retailers' Occupation Tax Act

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to retailers, to sellers, or to persons engaged in the business
of selling tangible personal property mean distributors and
retailers when used in this Act. References in the incorporated
Sections to sales of tangible personal property mean sales of
sugar-sweetened beverages, syrups, or powders when used in this
Act.
(c) In addition to any other penalty authorized by law, a
permit issued pursuant to Section 15 shall be suspended or
revoked if any court of competent jurisdiction determines, or
the Department finds based on a preponderance of the evidence,
after the permittee is afforded notice and an opportunity to be
heard, that the permittee, or any of the permittee's agents or
employees, has violated any of the requirements, conditions, or
prohibitions of this Act. For a first violation of this Act
within any 60-month period, the permit shall be suspended for
30 days. For a second violation of this Act within any 60-month
period, the permit shall be suspended for 90 days. For a third
violation of this Act within any 60-month period, the permit
shall be suspended for one year. For a fourth or subsequent
violation of this Act within any 60-month period, the license
shall be revoked.
(d) A decision of the Department under this Section is a
final administrative decision and is subject to review by the
Illinois Independent Tax Tribunal.
Section 50. Unpaid taxes a debt. The tax herein required to

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be paid by any person distributing sugar-sweetened beverages,
powders, or syrup for sale to a retailer in the State, and any
such tax required to be paid by that person shall constitute a
debt owed by that person to this State.
Section 55. Revenue distribution; establishment of
Illinois Wellness Fund. The Illinois Wellness Fund is hereby
created as a special fund in the State Treasury. All the moneys
collection by the Department pursuant to the taxes imposed by
Section 20 shall be deposited as follows; 2% shall be deposited
into the Tax Compliance and Administration Fund for the
administrative costs of the Department, and 98% shall be
deposited into the Illinois Wellness Fund. Of the moneys
deposited into the Illinois Wellness Fund on a monthly basis,
the following amounts shall remain in the fund and be used for
the purposes set forth in Section 60 of this Act:
(a)$4,167,000 until June 30, 2018;
(b)$6,250,000 from July 1, 2018 until June 30, 2019; and
(c)$8,334,000 after July 1 2019.
The remainder of the monthly balance shall be deposited
into the Healthcare Provider Relief Fund. Beginning July 1,
2019, those funds shall be used for the purposes set forth in
Section 65 of this Act.
Section 60. Expenditure of Illinois Wellness Fund for
community prevention and wellness initiatives.

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(a) The moneys remaining in the Illinois Wellness Fund
shall be used to support community prevention and wellness
initiatives, as follows:
(1) One-half of one percent (0.5%) shall be dedicated
to administration of the Fund by the Department of Public
Health, and an additional 0.5% shall be appropriated to the
Department of Public Health for the purpose of providing
administrative support to the Advisory Council and a
Healthy in All Policies coordinator.
(2) At least 1% but not more than 2% shall be dedicated
to evaluation of the impact of the Act on the health and
wellness of Illinoisans. Evaluation of the Act shall be
conducted by an independent evaluator selected by the
Department of Public Health in consultation with the
Advisory Council. Those funds may also be used to support
relevant surveillance systems to support tracking of the
impact of the Act. The evaluation shall encompass the
impact of the Illinois Wellness Fund and the tax on the
consumption of sugar-sweetened beverages and obesity
rates, among other indicators. The evaluation shall also
include a summary of how moneys in the Illinois Wellness
Fund were allocated to eligible entities and spent within
the Illinois Medicaid program. The evaluator shall report
annually to the Advisory Council on the progress and
results of the evaluation.
(3) Two percent shall be dedicated to eligible entities

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to provide technical assistance to and statewide
coordination of strategies and activities of recipients of
funding from the Fund, including, but not limited to,
training and education around obesity prevention best
practices, coordination of strategies across grantees, and
quality improvement for obesity prevention and treatment
initiatives.
(4) Twenty percent shall be allocated to local health
departments via a formula developed by the Illinois
Department of Public Health based on population and need.
These funds shall not supplant existing State funding. The
moneys allocated under this paragraph (4) shall be used for
the following activities and services:
(A) conducting evidence-based obesity and chronic
disease prevention efforts to achieve at least one of
the following goals: eliminating racial, ethnic, and
socioeconomic disparities in obesity and chronic
disease incidence; improving access to and consumption
of healthy, safe, and affordable foods; reducing
access to and consumption of calorie-dense,
nutrient-poor foods; encouraging physical activity and
decreasing sedentary behavior; raising awareness about
the importance of nutrition and physical activity for
the prevention of chronic diseases; supporting the
consumption of foods that are grown or produced
locally; supporting the use of evidence-based clinical

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preventive services; and promoting breastfeeding; and
(B) leading and coordinating the efforts of other
organizations in their jurisdictions that are engaged
in similar efforts to achieve these goals, whether
funded through this Act or otherwise.
(5) The remaining money shall be used to support the
prevention of obesity, diabetes, cardiovascular disease,
and cancer, as well as oral health improvements, and shall
not be used to supplant existing State funds. At least 50%
of the funds allocated under this item (5) shall be
allocated to eligible entities serving high-need
populations. The Department of Public Health shall adopt
rules to designate high-need populations. The rules shall
establish the poverty rate as the primary indicator of
need, and, to the extent data is available, rates of
obesity and nutrition and physical activity-related
chronic diseases, sugary drink consumption, and population
density as sub-indicators of need for prioritizing funds.
The Department shall use the most up-to-date and valid data
available. These prevention initiatives shall include, but
are not limited to, the following:
(A) funds to support school and early childhood
health and wellness, including increased access to
healthy foods, increased physical activity and
physical education, improved quality of physical
education, increased nutrition education, improved

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health, mental health, oral health, and social
services in schools, increased opportunities for home
economics courses (cooking and healthy grocery
shopping education) and school and early childhood
education facility improvements that support health;
(B) funds to support community nutrition and
access to healthy foods, including nutrition
education, healthy cooking programs, healthy vending
initiatives, healthy food procurement, education
regarding shopping for healthy foods, increased
support for breastfeeding promotion programs, and
increasing access to healthy foods, including through
reducing the prevalence and effects of food deserts;
(C) funds to support physical activity in
communities, including active transportation,
community walkability and bike-ability initiatives,
multi-use trails, joint-use agreements, safe routes to
schools programs, educational programs that promote
physical activity, physical activity in after school
programs, environmental changes that increase physical
activity; initiatives that create physically safe and
accessible areas for physical activity and play;
(D) funds to support worksite wellness, including
promotion of nutrition, physical activity and
preventive services in worksites, workplace policies,
and environmental changes that support employee

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wellness;
(E) funds to support local food systems, including
promotion of, access to, and consumption of local
foods, farm-to-school and farm-to-institution
programs, community gardens, urban agriculture
projects, community-supported agriculture programs,
farmers markets and double-value coupons programs for
SNAP recipients at farmers markets, food hubs,
beginning farmer training programs, and farm stands;
and
(F) funds to support oral health improvement,
including increased access to oral health education,
dental sealants for children, and use of community
prevention and health education strategies that reduce
risk factors for oral and pharyngeal cancers.
(b) All moneys in the Illinois Wellness Fund, spent in
accordance with this Section, shall be expended only for the
purposes expressed in this Act and shall be used only to
supplement existing levels of service and not to supplant
current federal, State, or local funding for existing levels of
services as provided in fiscal year 2014. Entities that are
eligible to receive moneys from this Section include:
(1) community-based health improvement coalitions,
including, but not limited to:
(A) schools and early childhood education centers;
(B) non-profit community-based organizations;

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(C) Federally Qualified Health Centers, community
health centers, and organizations which operate a
school-based health center certified by the Illinois
Department of Public Health;
(D) non-profit hospitals and health systems,
particularly safety net hospitals;
(E) Illinois farms producing primarily fruits,
vegetables, and tree nuts for direct human consumption
by Illinois residents;
(F) faith-based organizations;
(G) policy, research, or training institutes or
centers; and
(H) local public health, planning, and
transportation departments, and local park and school
districts; and
(2) individual non-profit community-based
organizations, including faith-based organizations,
working to improve health, as determined by the Advisory
Council;
(3) units of local government, including local public
health departments, local planning and transportation
departments, local school districts, and local park
districts;
(4) statewide or regional non-profit organizations,
including those with local chapters, members, or
affiliates; and

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(5) non-profit universities, public universities, and
institutions of higher learning.
(c) The Department of Public Health shall distribute the
moneys under this Section via grants to eligible entities
within 120 days after the start of each fiscal year including:
(1) allocation of funds for staff and resources needed
to administer the Fund and Advisory Council, including a
Health in All Policies Coordinator;
(2) distribution of funds allocated to local health
departments via formula as described in Section 60; and
(3) distribution of the remaining funds to eligible
entities as recommended by the Advisory Council for Health
and Wellness based on a request for proposal process; at
least half of the funds shall be dedicated to entities
serving high-need communities.
Funds may be distributed as multi-year grants.
Section 65. Expenditures of the Illinois Wellness Fund for
the Illinois Medicaid Program. Beginning July 1, 2019, the
moneys collected in the Illinois Wellness Fund and deposited
into the Healthcare Provider Relief Fund shall be expended by
the Department of Healthcare and Family Services for expanded
prevention and obesity treatment services for Medicaid
beneficiaries. The Department shall seek all required
amendments to the existing State Plan. The Department of
Healthcare and Family Services shall submit a report at the end

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of each State fiscal year to the Advisory Council on the
expanded services provided along with the savings and costs
associated with these services to the Medicaid program. The
Department of Healthcare and Family Services shall cover the
following prevention and obesity treatment services for all
Medicaid beneficiaries:
(1) all services recommended for pediatric prevention,
assessment and treatment of overweight and obesity set
forth by the American Academy of Pediatrics (clinical
practice guidelines) and those recommended by the U.S.
Preventive Services Task Force Grade B Recommendation to
screen for obesity in children and adolescents, including
clinical pediatric weight management treatment programs;
Medicaid benefits must follow these recommendations and
reimbursement rates must be set at a level that ensures
appropriate access to services outlined in the
recommendations;
(2) community-based, evidence-based lifestyle change
physical activity and nutrition programs, diabetes and
other health-behavior focused chronic disease
self-management and chronic disease prevention programs
for children and adults, including, but not limited to,
participation in the evidence-based Diabetes Prevention
Program, MEND program, Chronic Disease Self-Management
Program, and Diabetes Self-Management Program;
(3) evidence-based diabetes education programs;

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(4) medical nutrition therapy, care coordination,
weight management programs, diabetes education and
multi-disciplinary obesity treatment programs for
overweight and obese children and adults, including
coverage for services from dieticians, social workers,
psychologists, and pharmacists; and
(5) dental prevention services, including routine oral
health screenings, cleanings, and oral health maintenance
services for adults.
Section 70. Illinois Wellness Fund governance.
(a) The Illinois Wellness Fund shall be governed by a
multi-sector Advisory Council for Health and Wellness, with
administration by the Department of Public Health and
Department of Healthcare and Family Services as described
below. The Advisory Council for Health and Wellness shall be
established by December 31, 2017 and be comprised of:
(1) one ex officio representative from each of the
following Departments: the Department of Public Health,
the Department of Human Services, the State Board of
Education, the Department on Aging, the Department of
Healthcare and Family Services, the Department of
Transportation, and the Department of Agriculture,
appointed by the Director or Secretary of the respective
Department;
(2) one obesity prevention advocate representing a

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statewide coalition working on reducing obesity through
policy, systems, and environmental changes, appointed by
the Governor;
(3) one person representing primary or secondary
education, or both, appointed by the Governor;
(4) one representative of a statewide organization
focusing on chronic disease prevention, appointed by the
Governor;
(5) one representative of an organization or coalition
focusing on active transportation, appointed by the
Governor;
(6) one representative of an organization or coalition
focusing on employer wellness initiatives, appointed by
the Governor;
(7) one person representing access to healthy foods
initiatives, appointed by the Governor;
(8) one person representing community-based obesity
prevention programs, appointed by the Governor;
(9) one representative of an association representing
hospitals across the State, appointed by the Governor;
(10) one person representing public health
departments, appointed by the Governor;
(11) one representative of an association representing
public health practitioners, appointed by the Governor;
(12) one representative of an organization
representing pediatricians in the State, appointed by the

HB2914 - 30 - LRB100 09641 HLH 19810 b
Governor;
(13) one representative of an organization
representing primary care providers in the State,
appointed by the Governor;
(14) one person representing community based healthy
eating-active living coalitions, appointed by the
Governor;
(15) one person representing communities of color or
communities that are disproportionately impacted by
obesity, appointed by the Governor;
(16) one person representing faith-based
organizations, appointed by the Governor;
(17) one person representing an organization working
in behavioral health, appointed by the Governor;
(18) one person representing the general public,
appointed by the Governor; and
(19) four members of the General Assembly, one
appointed by each of the following: the Speaker and
Minority Leader of the Illinois House of Representatives
and the President and Minority Leader of the Illinois
Senate; the members appointed by the Speaker and the
President of the Senate shall serve as co-chairs of the
Advisory Council.
(b) The public members of the Advisory Council for Health
and Wellness shall serve 4-year terms, and may be reappointed
for consecutive terms. Members whose terms expire shall

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continue to serve until their successors are appointed and
qualified. The legislative members of the Advisory Council for
Health and Wellness shall serve 2-year terms that correspond to
each General Assembly, except that the incumbent shall continue
to serve until reappointed or replaced.
(c) The Advisory Council for Health and Wellness shall have
the following powers and duties:
(1) to make recommendations to Department of Public
Health on fund allocation categories every 3 years based on
the State's current conditions and needs related to
nutrition and physical activity-related chronic disease
prevention and the results of the Act evaluation report;
(2) to develop and implement a request for proposal
(RFP) process for allocating the Illinois Wellness Fund
moneys via grants to eligible entities across the State
each year (or via multi-year grants);
(3) oversight of the request for proposals process,
including advising on the selection of eligible entities to
receive funds and submission of funding recommendations to
the Department of Public Health for funding for eligible
entities for initiatives as described in Section 60 within
120 days of the start of the fiscal year;
(4) to advise on the selection of evaluators and
provide input on the evaluation design, goals, and methods
at least annually, and to receive and review progress
reports on the evaluation;

HB2914 - 32 - LRB100 09641 HLH 19810 b
(5) to annually receive and review the evaluation
progress report and Medicaid services, costs, and savings
report related to this Act; and
(6) to submit a report to the General Assembly every 3
years on the allocation of the funds and summary results of
the impact evaluation of the Illinois Wellness Fund and the
tax imposed under this Act.
Section 75. Rulemaking. No later than August 31, 2017, the
Department of Public Health shall adopt rules for the
distribution of Illinois Wellness Fund moneys for community
prevention, pursuant to Section 60. No later than August 31,
2017, the Department of Healthcare and Family Services shall
adopt rules for the allocation and distribution of Wellness
Fund moneys to support prevention in the Medicaid program
pursuant to Section 65. No later than April 30, 2017, the
Department of Revenue shall adopt rules to implement the
provisions of this Act related to the implementation,
collection, and deposition of the tax, so that taxes will be
collected beginning May 1, 2017.
Section 97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
Section 200. The Illinois Independent Tax Tribunal Act of
2012 is amended by changing Section 1-45 as follows:

HB2914 - 33 - LRB100 09641 HLH 19810 b
(35 ILCS 1010/1-45)
Sec. 1-45. Jurisdiction of the Tax Tribunal.
(a) Except as provided by the Constitution of the United
States, the Constitution of the State of Illinois, or any
statutes of this State, including, but not limited to, the
State Officers and Employees Money Disposition Act, the Tax
Tribunal shall have original jurisdiction over all
determinations of the Department reflected on a Notice of
Deficiency, Notice of Tax Liability, Notice of Claim Denial, or
Notice of Penalty Liability issued under the Illinois Income
Tax Act, the Use Tax Act, the Service Use Tax Act, the Service
Occupation Tax Act, the Retailers' Occupation Tax Act, the
Cigarette Tax Act, the Cigarette Use Tax Act, the Tobacco
Products Tax Act of 1995, the Hotel Operators' Occupation Tax
Act, the Motor Fuel Tax Law, the Automobile Renting Occupation
and Use Tax Act, the Coin-Operated Amusement Device and
Redemption Machine Tax Act, the Gas Revenue Tax Act, the Water
Company Invested Capital Tax Act, the Telecommunications
Excise Tax Act, the Telecommunications Infrastructure
Maintenance Fee Act, the Public Utilities Revenue Act, the
Electricity Excise Tax Law, the Aircraft Use Tax Law, the
Watercraft Use Tax Law, the Gas Use Tax Law, or the Uniform
Penalty and Interest Act, or the Healthy Eating Active Living
(HEAL) Act. Except with respect to the Healthy Eating Active
Living (HEAL) Act, jurisdiction Jurisdiction of the Tax

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Tribunal is limited to Notices of Tax Liability, Notices of
Deficiency, Notices of Claim Denial, and Notices of Penalty
Liability where the amount at issue in a notice, or the
aggregate amount at issue in multiple notices issued for the
same tax year or audit period, exceeds $15,000, exclusive of
penalties and interest. In notices solely asserting either an
interest or penalty assessment, or both, the Tax Tribunal shall
have jurisdiction over cases where the combined total of all
penalties or interest assessed exceeds $15,000.
(b) Except as otherwise permitted by this Act and by the
Constitution of the State of Illinois or otherwise by State
law, including, but not limited to, the State Officers and
Employees Money Disposition Act, no person shall contest any
matter within the jurisdiction of the Tax Tribunal in any
action, suit, or proceeding in the circuit court or any other
court of the State. If a person attempts to do so, then such
action, suit, or proceeding shall be dismissed without
prejudice. The improper commencement of any action, suit, or
proceeding does not extend the time period for commencing a
proceeding in the Tax Tribunal.
(c) The Tax Tribunal may require the taxpayer to post a
bond equal to 25% of the liability at issue (1) upon motion of
the Department and a showing that (A) the taxpayer's action is
frivolous or legally insufficient or (B) the taxpayer is acting
primarily for the purpose of delaying the collection of tax or
prejudicing the ability ultimately to collect the tax, or (2)

HB2914 - 35 - LRB100 09641 HLH 19810 b
if, at any time during the proceedings, it is determined by the
Tax Tribunal that the taxpayer is not pursuing the resolution
of the case with due diligence. If the Tax Tribunal finds in a
particular case that the taxpayer cannot procure and furnish a
satisfactory surety or sureties for the kind of bond required
herein, the Tax Tribunal may relieve the taxpayer of the
obligation of filing such bond, if, upon the timely application
for a lien in lieu thereof and accompanying proof therein
submitted, the Tax Tribunal is satisfied that any such lien
imposed would operate to secure the assessment in the manner
and to the degree as would a bond. The Tax Tribunal shall adopt
rules for the procedures to be used in securing a bond or lien
under this Section.
(d) If, with or after the filing of a timely petition, the
taxpayer pays all or part of the tax or other amount in issue
before the Tax Tribunal has rendered a decision, the Tax
Tribunal shall treat the taxpayer's petition as a protest of a
denial of claim for refund of the amount so paid upon a written
motion filed by the taxpayer.
(e) The Tax Tribunal shall not have jurisdiction to review:
(1) any assessment made under the Property Tax Code;
(2) any decisions relating to the issuance or denial of
an exemption ruling for any entity claiming exemption from
any tax imposed under the Property Tax Code or any State
tax administered by the Department;
(3) a notice of proposed tax liability, notice of

HB2914 - 36 - LRB100 09641 HLH 19810 b
proposed deficiency, or any other notice of proposed
assessment or notice of intent to take some action;
(4) any action or determination of the Department
regarding tax liabilities that have become finalized by
law, including but not limited to the issuance of liens,
levies, and revocations, suspensions, or denials of
licenses or certificates of registration or any other
collection activities;
(5) any proceedings of the Department's informal
administrative appeals function; and
(6) any challenge to an administrative subpoena issued
by the Department.
(f) The Tax Tribunal shall decide questions regarding the
constitutionality of statutes and rules adopted by the
Department as applied to the taxpayer, but shall not have the
power to declare a statute or rule unconstitutional or
otherwise invalid on its face. A taxpayer challenging the
constitutionality of a statute or rule on its face may present
such challenge to the Tax Tribunal for the sole purpose of
making a record for review by the Illinois Appellate Court.
Failure to raise a constitutional issue regarding the
application of a statute or regulations to the taxpayer shall
not preclude the taxpayer or the Department from raising those
issues at the appellate court level.
(Source: P.A. 97-1129, eff. 8-28-12; 98-463, eff. 8-16-13.)

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Section 990. The State Finance Act is amended by adding
Section 5.878 as follows:
(30 ILCS 105/5.878 new)
Sec. 5.878. The Illinois Wellness Fund.
Section 999. Effective date. This Act takes effect upon
becoming law.