Bill Text: NJ A5053 | 2016-2017 | Regular Session | Introduced


Bill Title: "TrumpCare Nullification Act"; establishes "Affordable Health Care Fund" and State replacement taxes to replace federal taxes and funding provided under Affordable Care Act.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-06-26 - Introduced, Referred to Assembly Health and Senior Services Committee [A5053 Detail]

Download: New_Jersey-2016-A5053-Introduced.html

ASSEMBLY, No. 5053

STATE OF NEW JERSEY

217th LEGISLATURE

INTRODUCED JUNE 26, 2017

 


 

Sponsored by:

Assemblyman  JAMEL C. HOLLEY

District 20 (Union)

 

 

 

 

SYNOPSIS

     "TrumpCare Nullification Act"; establishes "Affordable Health Care Fund" and State replacement taxes to replace federal taxes and funding provided under Affordable Care Act.

 

CURRENT VERSION OF TEXT

     As introduced.

 


An Act concerning funding for Medicaid services, designated as the TrumpCare Nullification Act, and supplementing Titles 30 and 54 of the Revised Statutes.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    a.  There is established in the Department of the Treasury a special, nonlapsing fund to be known as the "Affordable Health Care Fund."  The fund shall be administered by the State Treasurer and shall be comprised of revenues collected pursuant to section 2 of this act, such additional amounts as are appropriated by the Legislature, and any return on investment of money deposited in the fund.

     b.    All funds deposited in the fund shall be dedicated for the purpose of providing health care coverage under the Medicaid program for individuals who meet the eligibility criteria under sections 1902(a)(10)(A)(i)(VIII) of the federal Social Security Act (42 U.S.C. s.1396a) or as otherwise provided pursuant to the "Patient Protection and Affordable Care Act," Pub.L.111-148, as amended by the "Health Care and Education Reconciliation Act of 2010," Pub.L.111-152, and any regulations adopted pursuant thereto as were in effect on January 1, 2017.

 

     2.    a.  There are hereby imposed State replacement taxes for the federal taxes imposed pursuant to the following sections of the "Patient Protection and Affordable Care Act," Pub.L.111-148, as amended by the "Health Care and Education Reconciliation Act of 2010," Pub.L.111-152:

     (1)   Section 1402 (26 U.S.C. s.1411);

     (2)   Section 9008;

     (3)   Section 9010;

     (4)   Section 9015 (26 U.S.C. s.3101(b)(2)); and

     (5)   Section 10907 (26 U.S.C. s.5000B).

     b.    No State replacement tax under subsection a. of this section shall be imposed except in the event that the federal tax to be replaced is reduced, allowed to expire, or repealed by enactment of federal legislation on or after January 1, 2017.

     c.     Upon enactment of any federal legislation that reduces, allows to expire, or repeals any of the provisions of federal law described in subsection a. of this section, the State Treasurer shall, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), immediately act to develop rules and regulations to administer State taxes that are to be imposed upon the same taxpayers, at the same rates, and in substantially the same fashion as the federal taxes to be replaced, subject to the jurisdictional limits of the taxation power of the State of New Jersey.  A State replacement tax imposed under this section shall take effect on the same date that the replaced federal tax is reduced, allowed to expire, or repealed.

     d.    All revenue collected pursuant to this section shall be deposited in the "Affordable Health Care Fund" established pursuant to section 1 of this act.

 

     3.    The State Treasurer shall, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt any rules and regulations as necessary to carry out the provisions section 2 of this act.

 

     4.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill, designated as the "TrumpCare Nullification Act," provides for the State replacement of several federal taxes imposed under the federal Affordable Care Act (ACA), in the event that those taxes are reduced, allowed to expire, or repealed by enactment of federal legislation.  The revenues collected from the new State taxes will be dedicated to maintaining the Medicaid expansion established through under the ACA.  All of the taxes identified in the bill for replacement would be repealed under the "American Health Care Act," as that legislation was passed by the U.S. House of Representatives in May 2017.

     The specific federal taxes to be replaced by State taxes under the bill are:

·The net investment income tax under 26 U.S.C. s.1411;

·The tax on manufacture and importation of prescription medications under section 9008 of the ACA;

·The health insurance providers' fee under section 9010 of the ACA;

·The additional 0.9 percent payroll tax on high-income households under 26 U.S.C. s.3101(b)(2); and

·The indoor tanning tax under 26 U.S.C. s.5000B.

     Under the bill, no State replacement tax will be imposed except in the event that the federal tax to be replaced is reduced, allowed to expire, or repealed by enactment of federal legislation on or after January 1, 2017.

     Upon enactment of any federal legislation that reduces, allows to expire, or repeals any of the listed federal taxes, the State Treasurer will be required to immediately act to develop rules and regulations to administer State taxes that are to be imposed upon the same taxpayers, at the same rates, and in substantially the same fashion as the federal taxes to be replaced, subject to the jurisdictional limits of the taxation power of the State of New Jersey.  A State replacement tax will take effect on the same date that the replaced federal tax is reduced, allowed to expire, or repealed.

     All revenue collected under the bill will be deposited in the "Affordable Health Care Fund," established pursuant to the bill.  All funds deposited in the fund are dedicated for the purpose of providing health care coverage under the Medicaid program for individuals who meet the eligibility criteria for the ACA Medicaid expansion (generally, adults whose household income is under 138 percent of the federal poverty level).  There are currently approximately 550,000 New Jersey residents receiving Medicaid coverage under the ACA expansion, whose coverage costs would be eligible for significantly less federal funding if the "American Health Care Act" or similar federal legislation is enacted.

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