Bill Text: IL HB5690 | 2013-2014 | 98th General Assembly | Amended

Bill Title: Creates the Sugar-Sweetened Beverages, Syrups, and Powder Tax Law. Imposes a tax on distributors of bottled sugar-sweetened beverages, syrups, or powders. Provides that the tax is imposed at the rate of $0.01 per ounce of bottled sugar-sweetened beverages sold or offered for sale to a retailer for sale in the State to a consumer. Provides that the distributor shall add the amount of the tax to the price of sugar-sweetened beverages sold to a retailer, and the retailer shall pass the amount of the tax through to the consumer. Requires those distributors to obtain permits. Contains provisions concerning the distribution of the proceeds. Effective January 1, 2015.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB5690 Detail]

Download: Illinois-2013-HB5690-Amended.html

Rep. Robyn Gabel

Filed: 3/19/2014

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2 AMENDMENT NO. ______. Amend House Bill 5690 by replacing
3everything after the enacting clause with the following:
4 "Section 1. Short title. This Act may be cited as the
5Healthy Eating, Active Living (HEAL) Act.
6 Section 5. Findings and purpose. The General Assembly finds
8 Over the past 30 years, the obesity rate in the United
9States has substantially increased. The prevalence of adult
10obesity has more than doubled during that time. According to
11statistics compiled by the Centers for Disease Control, nearly
1228% of Illinois' adult residents in 2012 were considered obese
13(body mass index (BMI) of 30 and above) and the rate was even
14higher among African American (40.5%) and Hispanic (31.2%)
16 For children, the increase in obesity has been even more

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1dramatic, with the obesity rate among children ages 6-11 more
2than quadrupling over the last four decades. The State of
3Illinois is not immune to the problem. 21% of Illinois children
4(age 0-17 years) are obese, the fourth worst rate in the
6 Obese children are at least twice as likely as non-obese
7children to become obese adults. Research indicates that the
8likelihood of an obese child becoming an obese adult increases
9with age; adolescents who are obese have a greater likelihood
10of being obese in adulthood, as compared to younger children.
11 The obesity epidemic has led to a dramatic increase in
12obesity-related health conditions, such as type 2 diabetes,
13asthma, and heart disease. These health conditions costs the
14nation billions of dollars in health care costs and lost
15productivity. Obesity and weight-related health conditions
16account for $147 billion in health care costs nationally, or 9
17percent of all medical spending, per year. Obesity-related
18annual medical expenditures in the State of Illinois are
19estimated at $3.4 billion in 2003 dollars. Almost 60% of these
20costs are paid by public funds through Medicare and Medicaid.
21 Numerous studies have established a link between obesity
22and consumption of sugar-sweetened beverages such as soft
23drinks, energy drinks, sweet teas and sports drinks. One
24meta-analysis of eight studies examining the role of
25sugar-sweetened beverage consumption on health found that
26consumption was significantly associated with type 2 diabetes

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1based on over 15,000 reported cases of this condition. Some
2studies have shown increased risk for heart disease independent
3of weight status, suggesting that sugar-sweetened beverages
4are unhealthy even for people who otherwise maintain a normal
6 Sugar-sweetened beverages are the number one source of
7added sugar in the American diet (46% of added sugars). A study
8of a five-year period between 1999 and 2004 showed that
9children and adolescents consumed 10-15% of their daily caloric
10intake from sugar-sweetened beverages, which offer little or no
11nutritional value and massive quantities of added sugars. For
12example, a single 12-ounce can of soda contains the equivalent
13of approximately 10 teaspoons of sugar; the American Heart
14Association recommends that women consume no more than 6
15teaspoons of added sugar per day, men consume no more than 9
16teaspoons of added sugar per day, and children consume no more
17than 4 teaspoons of added sugar a day.
18 A study found that a penny-per-ounce excise tax on
19sugar-sweetened beverages in Illinois would result in a 23.5%
20reduction in sugar-sweetened beverage consumption, 185,127
21fewer obese Illinoisans, a 9.3% reduction in youth obesity, a
225.2% reduction in adult obesity, 3,442 fewer incidences of
23diabetes, and a $150.8 million reduction in obesity-related
24healthcare costs.
25 It is the intent of the Legislature, by adopting this Act,
26creating the Illinois Wellness Fund, and providing targeted

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1prevention and additional health care funding to Medicaid, to
2diminish the human and economic costs of obesity in the State
3of Illinois. This Act is intended to discourage excessive
4consumption of sugar-sweetened beverages by increasing the
5price of these products and to create a dedicated revenue
6source for programs designed to prevent and treat obesity and
7for the State Medicaid program to reduce the burden of related
8health conditions.
9 Section 10. Definitions. For purposes of this Act:
10 "Advisory Board" means the Board established under Section
12 "Bottle" means any closed or sealed container regardless of
13size or shape, including, without limitation, those made of
14glass, metal, paper, plastic, or any other material or
15combination of materials.
16 "Bottled sugar-sweetened beverage" means any
17sugar-sweetened beverage contained in a bottle that is ready
18for consumption without further processing such as, without
19limitation, dilution or carbonation.
20 "Caloric sweetener" means any caloric substance suitable
21for human consumption that humans perceive as sweet and
22includes, without limitation, sucrose, fructose, glucose,
23fruit juice concentrate, or other sugars. "Caloric sweetener"
24excludes non-caloric sweeteners. For purposes of this
25definition, "caloric" means a substance which adds calories to

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1the diet of a person who consumes that substance.
2 "Consumer" means a person who purchases a sugar-sweetened
3beverage for consumption and not for sale to another.
4 "Council" means the Council of State Agencies established
5under Section 70.
6 "Department" means the Department of Revenue.
7 "Distributor" means any person, including manufacturers
8and wholesale dealers, who receives, stores, manufactures,
9bottles, or distributes bottled sugar-sweetened beverages,
10syrup, or powders, for sale to retailers doing business in the
11State, whether or not that person also sells such products to
13 "Fund" means the Illinois Wellness Fund established
14pursuant to Section 60.
15 "Non-caloric sweetener" means any non-caloric substance
16suitable for human consumption that humans perceive as sweet
17and includes, without limitation, aspartame, saccharin,
18stevia, and sucralose. "Non-caloric sweetener" excludes
19caloric sweeteners. For purposes of this definition,
20"non-caloric" means a substance that contains fewer than 5
21calories per serving.
22 "Person" means any natural person, partnership,
23cooperative association, limited liability company,
24corporation, personal representative, receiver, trustee,
25assignee, or any other legal entity.
26 "Place of business" means any place where sugar-sweetened

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1beverages, syrups, or powders are manufactured or received for
2sale in the state.
3 "Powders" means any solid mixture of ingredients used in
4making, mixing, or compounding sugar-sweetened beverages by
5mixing the powder with any one or more other ingredients,
6including without limitation water, ice, syrup, simple syrup,
7fruits, vegetables, fruit juice, vegetable juice, carbonation
8or other gas.
9 "Retailer" means any person who sells or otherwise
10dispenses in the State a sugar-sweetened beverage to a consumer
11whether or not that person is also a distributor as defined in
12this Section.
13 "Sale" means the transfer of title or possession for
14valuable consideration regardless of the manner by which the
15transfer is completed.
16 "State" means the State of Illinois.
17 "Sugar-sweetened beverage" means any nonalcoholic
18beverage, carbonated or noncarbonated, which is intended for
19human consumption and contains any added caloric sweetener. As
20used in this definition, "nonalcoholic beverage" means any
21beverage that contains less than one-half of one percent
22alcohol per volume. The term "sugar-sweetened beverage" does
23not include:
24 (1) beverages sweetened solely with non-caloric
25 sweeteners;
26 (2) beverages consisting of 100% natural fruit or

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1 vegetable juice with no added caloric sweetener; for
2 purposes of this paragraph, "natural fruit juice" and
3 "natural vegetable juice" mean the original liquid
4 resulting from the pressing of fruits or vegetables, or the
5 liquid resulting from the dilution of dehydrated natural
6 fruit juice or natural vegetable juice;
7 (3) beverages in which milk, or soy, rice, or similar
8 milk substitute, is the primary ingredient or the first
9 listed ingredient on the label of the beverage; for
10 purposes of this Act, "milk" means natural liquid milk
11 regardless of animal or plant source or butterfat content,
12 natural milk concentrate, whether or not reconstituted,
13 regardless of animal or plant source or butterfat content,
14 or dehydrated natural milk, whether or not reconstituted
15 and regardless of animal or plant source or butterfat
16 content;
17 (4) coffee or tea without added caloric sweetener;
18 (5) infant formula;
19 (6) medically necessary foods, as defined in the
20 federal Orphan Drug Act; and
21 (7) water without any caloric sweeteners.
22 "Syrup" means a liquid mixture of ingredients used in
23making, mixing, or compounding sugar-sweetened beverages using
24one or more other ingredients including, without limitation,
25water, ice, a powder, simple syrup, fruits, vegetables, fruit
26juice, vegetable juice, carbonation, or other gas.

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1 Section 15. Permit required.
2 (a) Every distributor doing business in the State shall
3file with the Department an application for a permit to engage
4in such business, for each place of business owned and operated
5by the distributor before the sooner of January 1, 2015 or a
6distributor's first acts which constitute the doing of business
7in the State. An application for a permit shall be filed on
8forms to be furnished by the Department for that purpose. An
9application must be subscribed and sworn to by a person with
10legal authority to bind the business. The application shall
11identify the owners of the applicant, the applicant's mailing
12address, the place of business to which the permit shall apply,
13and the nature of the business in which engaged, and any other
14information the Department may require for the enforcement of
15this Act.
16 (b) Upon receipt of an application and any permit fee
17hereafter provided for, the Department may issue to the
18applicant, for the place of business designated, a
19non-assignable permit, authorizing the sale of sugar-sweetened
20beverages, syrups, and powders in the State. No distributor
21shall sell any sugar-sweetened beverage, syrup, or powders
22without first obtaining a permit to do so under this Act.
23Permits issued pursuant to this Section shall expire on January
2431 of each year and may be renewed annually.
25 (c) A permit may not be transferred from one person to

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1another, and a permit shall at all times be prominently
2displayed in a distributor's place of business. The Department
3may refuse to issue a permit to any Person previously convicted
4of violations of this Act under such procedures as the
5Department may establish by regulation.
6 Section 20. Tax imposed.
7 (a) There is hereby imposed an excise tax on every
8distributor for the privilege of selling the products governed
9by this Act in the State, calculated as follows:
10 (1) $0.01 per ounce of bottled sugar-sweetened
11 beverages sold or offered for sale to a retailer for sale
12 in the State to a consumer.
13 (2) The tax on syrup and powders sold or offered for
14 sale to a retailer for sale in the State to a consumer,
15 either as syrup or powders or as a sugar-sweetened beverage
16 derived from that syrup or powder, is equal to $0.01 per
17 ounce for each ounce of sugar-sweetened beverage produced
18 from that syrup or powder; for purposes of calculating the
19 tax, the volume of sugar-sweetened beverage produced from
20 syrup or powders shall be the larger of (i) the largest
21 volume resulting from use of the syrup or powders according
22 to any manufacturer's instructions or (ii) the volume
23 actually produced by the retailer, as reasonably
24 determined by the Department.
25 (3) The tax amounts set forth in this Section shall be

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1 adjusted annually by the Department in proportion with the
2 Consumer Price Index: All Urban Consumers for All Items for
3 the Midwest Statistical Area, as reported by the United
4 States Bureau of Labor Statistics or any successor to that
5 index.
6 (b) A retailer that sells bottled sugar-sweetened
7beverages, syrups, or powders in the State to a consumer, on
8which the tax imposed by this Section has not been paid by a
9distributor, is liable for the tax imposed in subsection (a) at
10the time of sale to a consumer.
11 (c) The taxes imposed by this Section are in addition to
12any other taxes that may apply to persons or products subject
13to this Act.
14 Section 25. Pass-through of the tax. A distributor shall
15add the amount of taxes levied by this Act to the price of
16sugar-sweetened beverages sold to a retailer, and the retailer
17shall pass the amount of the tax through to the consumer as a
18component of the final retail purchase price. The amount of the
19taxes may be stated separately on all invoices, signs, sales or
20delivery slips, bills, and statements that advertise or
21indicate the price of those beverages.
22 Section 30. Report of sales and tax remittances.
23 (a) Any distributor or retailer liable for the tax imposed
24by this Act shall, on or before the last day of March, June,

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1September, and December of each year, return to the Department
2under oath of a person with legal authority to bind the
3distributor or retailer, a statement containing its name and
4place of business, the quantity of sugar-sweetened beverages,
5syrup, and powders subject to the excise tax imposed by this
6Act sold or offered for sale in the 3 months immediately
7preceding the month in which the report is due, and any other
8information required by the Department, along with the tax due.
9 (b) The Department shall deposit the proceeds of the tax
10into the Illinois Wellness Fund as described in Section 60.
11 Section 35. Records of distributors. Every distributor and
12every retailer subject to this Act shall maintain for not less
13than 2 years accurate records, showing all transactions that
14gave rise, or may have given rise, to tax liability under this
15Act. Such records are subject to inspection by the Department
16at all reasonable times during normal business hours.
17 Section 40. Exemptions. The following shall be exempt from
18the tax imposed by Section 20:
19 (1) Bottled sugar-sweetened beverages, syrups, and
20 powders sold by a distributor or a retailer expressly for
21 resale or consumption outside of the State.
22 (2) Bottled sugar-sweetened beverages, syrups, and
23 powders sold by a distributor to another distributor that
24 holds a permit issued under Section 15, if the sales

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1 invoice clearly indicates that the sale is exempt. If the
2 sale is to a person who is both a distributor and a
3 retailer, the sale shall also be tax exempt and the tax
4 shall be paid when the purchasing distributor-retailer
5 resells the product to a retailer or a consumer. This
6 exemption does not apply to any other sale to a retailer.
7 Section 45. Penalties.
8 (a) Any distributor, retailer, or other person subject to
9the provisions of this Act who fails to pay the entire amount
10of tax imposed by this Act by the date that payment is due,
11fails to submit a report or maintain records required by this
12Act, does business in the State of Illinois without first
13obtaining a permit as required by this Act, or violates any
14other provision of this Act, or rules and regulations adopted
15by the Department for the enforcement of this Act, shall be
16guilty of a misdemeanor and shall also be liable for the
17penalties set forth and incorporated by reference into this
19 (b) Incorporation by reference. All of the provisions of
20Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 6, 6a,
216b, 6c, 8, 9, 10, 11, 11a, and 12 of the Retailers' Occupation
22Tax Act, and all applicable provisions of the Uniform Penalty
23and Interest Act that are not inconsistent with this Act, apply
24to Distributors of Sugar-Sweetened Beverages to the same extent
25as if those provisions were included in this Act. References in

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1the incorporated sections of the Retailers' Occupation Tax Act
2to retailers, to sellers, or to persons engaged in the business
3of selling tangible personal property mean Distributors and/or
4Retailers when used in this Act. References in the incorporated
5Sections to sales of tangible personal property mean sales of
6sugar-sweetened beverages, syrups, and powders when used in
7this Act.
8 (c) In addition to any other penalty authorized by law, a
9permit issued pursuant to Section 15 shall be suspended or
10revoked if any court of competent jurisdiction determines, or
11the Department finds based on a preponderance of the evidence,
12after the permittee is afforded notice and an opportunity to be
13heard, that the permittee, or any of the permittee's agents or
14employees, has violated any of the requirements, conditions, or
15prohibitions of this chapter.
16 (1) For a first violation of this Act within any
17 60-month period, the permit shall be suspended for 30 days.
18 (2) For a second violation of this Act within any
19 60-month period, the permit shall be suspended for 90 days.
20 (3) For a third violation of this Act within any
21 60-month period, the permit shall be suspended for one
22 year.
23 (4) For a fourth or subsequent violation of this Act
24 within any 60-month period, the license shall be revoked.
25 (d) A decision of the Department under this Section is a
26final administrative decision and is subject to review under

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1the Administrative Review Law.
2 Section 50. Unpaid taxes a debt. All taxes and penalties
3imposed under the provisions of this Act remaining due and
4unpaid shall constitute a debt to the State, which may be
5collected from the person owing same by suit or otherwise.
6 Section 55. Records of Department. At the end of each
7month, the State Auditor General shall check the books and
8records of the Department and its accounts with any bank or
9banks, and shall verify the amounts collected pursuant to this
10Act and paid into the Illinois Wellness Fund within the State
11treasury. Any duty herein required of the State Auditor General
12may be performed by any duly trained clerk in his office,
13designated by the State Auditor General for that purpose.
14 Section 60. Revenue distribution and establishment of
15Illinois Wellness Fund. The Illinois Wellness Fund is hereby
16created as a special fund in the State treasury. All of the
17moneys collected pursuant to the taxes imposed by Section 20
18shall be deposited into the Illinois Wellness Fund. After
19administrative costs have been deducted, 50% of the moneys
20shall be allocated as provided in Section 65, and 50% of the
21moneys shall be allocated as provided in Section 75. All costs
22to implement this Act shall be paid from the Illinois Wellness
23Fund prior to the distribution of the funds as described in

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1this Section.
2 Section 65. Governance and expenditure of Illinois
3Wellness Fund.
4 (a) Except as otherwise provided in subsection (b), 50% of
5the moneys in the Illinois Wellness Fund shall be used as
7 (1) Up to 4% of the moneys each year shall be dedicated
8 to administration of the Fund by the Office of the
9 Governor, the Illinois Department of Public Health, the
10 State Board of Education, and the Council of Agencies.
11 (2) At least 3% but not more than 5% of the moneys
12 collected into the Fund shall be dedicated to evaluation of
13 the impact of the Act on the health and wellness of
14 Illinoisans. Evaluation of the Act shall be conducted by an
15 independent evaluator selected by the Department of Public
16 Health in consultation with the Council and Advisory Board.
17 The evaluation shall encompass the impact of the Wellness
18 Fund and the effect of the tax on the consumption of
19 sugar-sweetened beverages and obesity rates, among other
20 indicators. The evaluator shall report annually to the
21 Council of State Agencies and the Advisory Board on the
22 progress and results of the evaluation.
23 (3) At least 3% but not more than 5% of the moneys
24 collected into the Fund shall be dedicated to providing
25 technical assistance to and statewide coordination of

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1 strategies and activities of recipients of funding from the
2 Fund.
3 (4) The remainder of the moneys in the Fund shall be
4 used to support the prevention of obesity, diabetes and
5 cardiovascular disease, and cancer, and for oral health
6 improvements, including, but not limited to, the following
7 programs:
8 (A) school health and wellness, including
9 increased consumption of healthy foods, increased
10 physical activity and physical education, improved
11 quality of physical education, increased health
12 education, improved health, mental health, oral
13 health, and social services in schools, and school
14 facility improvements that support health;
15 (B) public health leadership and infrastructure
16 for obesity and chronic disease prevention; this
17 funding shall support leadership, coordination,
18 technical assistance, quality improvement, and
19 training for programs or coalitions led by health
20 departments, associations, or institutes that use
21 educational, environmental, policy, and other
22 evidence-based public health approaches that achieve
23 the following goals: eliminating racial, ethnic, and
24 socioeconomic disparities in obesity and chronic
25 diseases; improving access to and consumption of
26 healthy, safe, and affordable foods; reducing access

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1 to and consumption of calorie-dense, nutrient-poor
2 foods; encouraging physical activity; decreasing
3 sedentary behavior; raising awareness about the
4 importance of nutrition and physical activity to
5 chronic disease prevention, including diabetes,
6 cardiovascular disease, and cancer prevention
7 education; supporting local food systems production
8 and distribution; supporting clinical preventive
9 services;
10 (C) oral health improvement, including increased
11 access to oral health education, dental sealants for
12 children, and use of community prevention and health
13 education strategies that reduce risk factors for oral
14 and pharyngeal cancers;
15 (D) community nutrition and access to healthy
16 foods, including nutrition education, healthy cooking
17 programs, healthy vending, healthy food procurement,
18 education regarding shopping for healthy foods, and
19 increasing access to healthy foods;
20 (E) physical activity in communities, including
21 active transportation, community walkability and
22 bike-ability initiatives, multi-use trails, joint-use
23 agreements, safe routes to schools, educational
24 programs that promote physical activity, and
25 environmental changes that increase physical activity;
26 (F) worksite wellness, including promotion of

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1 nutrition, physical activity and preventive services
2 in worksites, workplace policies and environmental
3 changes that support employee wellness;
4 (G) local food systems, including promotion of
5 access to and consumption of local foods,
6 farm-to-school and farm-to-institution programs,
7 healthy food procurement, community gardens, urban
8 agriculture projects, community-supported agriculture
9 programs, farmers markets, food hubs, beginning farmer
10 training programs, and farm stands; and
11 (H) regional public health hubs as described in the
12 Illinois Alliance for Health State Healthcare
13 Innovations Plan.
14 (b) In the first 3 years after the Fund is established, 50%
15of the moneys in the Illinois Wellness Fund shall be allocated
16as follows:
17 (1) 10% for administration, evaluation and technical
18 support of the Fund, as provided in item (1) of subsection
19 (a);
20 (2) 20% for school health and wellness;
21 (3) 20% for public health leadership and
22 infrastructure for obesity and chronic disease prevention;
23 (4) 10% for oral health;
24 (5) 10% for community nutrition and access to healthy
25 foods;
26 (6) 10% for physical activity in communities;

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1 (7) 10% for local food systems;
2 (8) 5% for worksite wellness; and
3 (9) 5% for regional health hubs.
4 (c) All moneys in the Illinois Wellness Fund allocated in
5accordance with this Section shall be expended only for the
6purposes expressed in this Act and shall be used only to
7supplement existing levels of service and not to supplant
8current federal, State, or local funding for existing levels of
9services as provided in fiscal year 2014.
10 (d) Entities that are eligible to receive moneys from the
11Fund under this Section include:
12 (1) units of local government, including school
13 districts, and State governments or governmental
14 departments;
15 (2) non-profit organizations;
16 (3) schools;
17 (4) federally Qualified Health Centers, community
18 health centers, and organizations which operate a
19 school-based health center certified by the Illinois
20 Department of Public Health;
21 (5) hospitals;
22 (6) Illinois farms producing primarily fruits,
23 vegetables and tree nuts for direct human consumption by
24 Illinois residents; and
25 (7) policy, research, or training institutes or
26 centers.

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1 Section 70. Illinois Wellness Fund; governance.
2 (a) The Illinois Wellness Fund shall be governed by a
3Council of State Agencies with input from a multi-sector
4Advisory Board. The Council of State Agencies shall be
5comprised of one representative from each of the following
6Departments: the Department of Public Health, the Department of
7Human Services, State Board of Education, the Department of
8Healthcare and Family Services, the Department on Aging, the
9Department of Transportation, and the Department of
11 (b) The Council's functions shall include:
12 (1) distribution of the Illinois Wellness Fund moneys
13 pursuant to Section 65 to eligible entities each year,
14 including:
15 (A) allocation of funds for staff and resources to
16 State agencies responsible for administering the
17 Wellness Fund, including a Health in All Policies
18 Coordinator to support the Council of State Agencies
19 and Advisory Board;
20 (B) selection of and allocation to eligible
21 entities, including organizations, associations, and
22 universities, that provide technical assistance to
23 request for proposal grantees and evaluation of the
24 impact of the Act;
25 (C) distribution of one-half of the funds

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1 allocated for public health leadership and
2 infrastructure under Section 65 directly to Local
3 Health Departments via an allocation formula developed
4 by the Department of Public Health for the purpose of
5 providing local coordination of Illinois Wellness Fund
6 grantees within their jurisdiction, if any, and for
7 local leadership of educational, environmental,
8 policy, and other evidence-based public health
9 approaches;
10 (D) distribution of the remaining funds to
11 eligible entities as recommended by the Advisory Board
12 based on a request for proposal process or processes;
13 and
14 (E) to advise on the selection of evaluators and
15 provide input on the evaluation design, goals, and
16 methods, at least annually receive and review a
17 progress report on the results of the evaluation;
18 (2) distribution of Illinois Wellness Fund moneys to
19 the Illinois Medicaid program pursuant to Section 75; and
20 (3) submission of a report to the General Assembly
21 every 3 years on the allocation of the funds and summary
22 results of the impact evaluation of the Illinois Wellness
23 Fund under Section 65 of this Act and the tax.
24 (c) The multi-sector Advisory Board shall include the
25following members:
26 (1) one obesity prevention advocate appointed by a

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1 statewide coalition working on reducing obesity through
2 policy, systems, and environmental changes;
3 (2) one school superintendent appointed by an
4 association representing school administrators;
5 (3) one physical education or health teacher appointed
6 by an association representing physical education and
7 health teachers;
8 (4) one oral health advocate appointed by a statewide
9 coalition working to promote oral health;
10 (5) one person appointed by a statewide organization
11 focusing on chronic disease prevention;
12 (6) one person appointed by an organization or
13 coalition focusing on active transportation;
14 (7) one person appointed by an organization or
15 coalition representing employer wellness initiatives;
16 (8) one person appointed by an organization or
17 coalition promoting healthy foods initiatives;
18 (9) one person appointed by a community-based obesity
19 prevention program;
20 (10) one person appointed by an association
21 representing hospitals across the State;
22 (11) 2 people appointed by associations representing
23 health departments; one person shall be appointed from the
24 southern region of the State, and one person shall be
25 appointed from the northern region of the State;
26 (12) one person appointed by an association

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1 representing public health practitioners;
2 (13) one pediatrician appointed by an organization
3 representing pediatricians in the State;
4 (14) one dietitian appointed by an association
5 representing dietitians in the State;
6 (15) 2 people appointed by a community-based healthy
7 eating and active living coalition;
8 (16) 2 people representing communities of color or
9 communities that are disproportionately impacted by
10 obesity, appointed by the Governor; and
11 (17) 4 State legislators, one appointed by each of the
12 following: the Speaker and Minority Leader of the Illinois
13 House of Representatives and the President and Minority
14 Leader of the Illinois Senate.
15 (d) The Advisory Board's functions shall include:
16 (1) to review and make recommendations to the Council
17 of Agencies and Office of the Governor on the Fund
18 allocation formula every 3 years based on an assessment of
19 the State's current conditions and needs related to chronic
20 disease prevention; the allocation formula may include
21 funds for expanding existing wellness programs, policies,
22 and initiatives, and funds for starting new programs,
23 policies, or initiative;
24 (2) development and implementation of a request for
25 proposal process for allocating the Illinois Wellness Fund
26 moneys via grants across the State each year; the Advisory

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1 Board shall make funding recommendations to the Council of
2 Agencies for distribution of the funds; and
3 (3) to annually receive and review the evaluation
4 progress report.
5 Section 75. Expenditures for the Illinois Medicaid
6Program. Fifty percent of all moneys collected from the tax
7shall be allocated from the Illinois Wellness Fund to the
8Illinois Medicaid program by means of a Medicaid Fund. The
9Department of Healthcare and Family Services shall seek
10permission to amend the Medicaid State Plan to maximize the
11federal match, as needed. The Medicaid Fund shall be designated
12to include payment for the following services:
13 (1) restoring adult dental services and expanding
14 dental services for children and adults, including
15 expansion of prevention services;
16 (2) providing payments for medical nutrition therapy,
17 care coordination, weight management programs, and other
18 evidence-based multi-disciplinary obesity treatment
19 programs for overweight and obese patients, including
20 coverage for services from dietitians, social workers,
21 psychologists, and pharmacists;
22 (3) providing payment for non-licensed community
23 providers providing evidence-based physical activity and
24 nutrition programs for obese children and adults and
25 diabetes and other health-behavior focused chronic disease

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1 self-management and chronic disease prevention programs
2 for children and adults, including, but not limited to,
3 participation in the evidence-based Diabetes Prevention
4 Program, Chronic Disease Self-Management Program, MEND
5 program, and Diabetes Self-Management Program;
6 (4) funding coverage for all US Preventive Services
7 Task Force A & B Recommendations;
8 (5) supporting and expanding language access services
9 for Medicaid recipients; and
10 (6) funding activities of the State Healthcare
11 Innovations Plan and Path to Transformation for Medicaid.
12 Any remaining funds may be used for existing services and
13purposes of the Illinois Medicaid program.
14 Section 80. Rulemaking. The Department of Public Health,
15the State Board of Education, the Department of Healthcare and
16Family Services, and the Department of Revenue may adopt rules
17to implement the provisions of this Act.
18 Section 97. Severability. The provisions of this Act are
19severable under Section 1.31 of the Statute on Statutes.
20 Section 99. Effective date. This Act takes effect January
211, 2015.".