I 

113TH CONGRESS 

1ST SESSION H. R. 1578 

To amend section 1101 of the Patient Protection and Affordable Care Act 

to provide additional funds to permit additional individuals to enroll 

under the preexisting condition insurance program and expand eligibility, 

to be funded through a temporary increase in the cigarette tax, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 16, 2013 

Mr. PALLONE (for himself, Mr. WAXMAN, Mr. TONKO, Ms. SCHAKOWSKY, Mr. 

GENE GREEN of Texas, Mr. RUSH, Ms. MATSUI, Mrs. CAPPS, and Mrs. 

CHRISTENSEN) introduced the following bill; which was referred to the 

Committee on Energy and Commerce, and in addition to the Committee 

on Ways and Means, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To amend section 1101 of the Patient Protection and Affordable Care Act to provide additional funds to permit additional individuals to enroll under the preexisting condition insurance program and expand eligibility, to be 

funded through a temporary increase in the cigarette 

tax, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. EXTENSION OF FUNDING FOR REOPENING EN2 ROLLMENT UNDER THE PREEXISTING CONDI3 TION INSURANCE PROGRAM. 

4 (a) IN GENERAL.—Subsection (g)(1) of section 1101 

5 of the Patient Protection and Affordable Care Act (42 

6 U.S.C. 18001) is amended by striking ‘‘Such funds’’ and 

7 inserting the following: ‘‘In addition to the funds appro8 priated under the previous sentence, there is appropriated 

9 to the Secretary, out of any moneys in the Treasury not 

10 otherwise appropriated, $2,800,000,000 to pay claims 

11 (and administrative costs) described in such sentence. 

12 Funds appropriated under this paragraph’’. 

13 (b) REOPENING PROGRAM ENROLLMENT.—The Sec14 retary of Health and Human Services shall resume taking 

15 applications for participation under the temporary high16 risk health insurance program under such section 1101, 

17 but only to the extent consistent with the limitation im18 posed under subsection (g)(4) of such section. 

19 (c) CONSTRUCTION.—Nothing in this section shall be 

20 construed as changing the application of subsection (g)(3) 

21 of such section (relating to termination of authority). 

22 SEC. 2. IMMEDIATE ACCESS TO HEALTH CARE FOR SICK 

23 AMERICANS. 

24 (a) IN GENERAL.—Section 1101(d) of the Patient 

25 Protection and Affordable Care Act (42 U.S.C. 18001(d)) 

26 is amended— 


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1 (1) in paragraph (1), by adding at the end 

2 ‘‘and’’; 

3 (2) by striking paragraph (2); and 

4 (3) by redesignating paragraph (3) as para5 graph (2). 

6 (b) EFFECTIVE DATE.—The amendments made by 

7 subsection (a) shall apply with respect to individuals ap8 plying for coverage through the high risk insurance pool 

9 program on or after the date of the enactment of this Act. 

10 SEC. 3. INCREASE IN RATE OF EXCISE TAX ON CIGARETTES. 

11 (a) IN GENERAL.—Section 5701(b)(1) of the Internal 

12 Revenue Code of 1986 is amended by inserting ‘‘($52.33 

13 per thousand in the case of cigarettes removed after De14 cember 31, 2013 and before January 1, 2024)’’ after 

15 ‘‘$50.33 per thousand’’. 

16 (b) FLOOR STOCKS TAXES.— 

17 (1) IMPOSITION OF TAX.—On cigarettes de18 scribed in section 5701(b)(1) of the Internal Rev19 enue Code of 1986 manufactured in or imported into 

20 the United States which are removed before January 

21 1, 2014, and held on such date for sale by any per22 son, there is hereby imposed a tax in an amount 

23 equal to the excess of— 


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1 (A) the tax which would be imposed under 

2 section 5701 of such Code on the article if the 

3 article had been removed on such date, over 

4 (B) the prior tax (if any) imposed under 

5 section 5701 of such Code on such article. 

6 (2) CREDIT AGAINST TAX.—Each person shall 

7 be allowed as a credit against the taxes imposed by 

8 paragraph (1) an amount equal to $500. Such credit 

9 shall not exceed the amount of taxes imposed by 

10 paragraph (1) on January 1, 2014, for which such 

11 person is liable. 

12 (3) LIABILITY FOR TAX AND METHOD OF PAY13 MENT.— 

14 (A) LIABILITY FOR TAX.—A person hold15 ing cigarettes referred to in paragraph (1) on 

16 January 1, 2014, to which any tax imposed by 

17 paragraph (1) applies shall be liable for such 

18 tax. 

19 (B) METHOD OF PAYMENT.—The tax im20 posed by paragraph (1) shall be paid in such 

21 manner as the Secretary shall prescribe by reg22 ulations. 

23 (C) TIME FOR PAYMENT.—The tax im24 posed by paragraph (1) shall be paid on or be25 fore May 1, 2014. 


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1 (4) ARTICLES IN FOREIGN TRADE ZONES.— 

2 Notwithstanding the Act of June 18, 1934 (com3 monly known as the Foreign Trade Zone Act, 48 

4 Stat. 998, 19 U.S.C. 81a et seq.) or any other provi5 sion of law, any article which is located in a foreign 

6 trade zone on July 1, 2013, shall be subject to the 

7 tax imposed by paragraph (1) if— 

8 (A) internal revenue taxes have been deter9 mined, or customs duties liquidated, with re10 spect to such article before such date pursuant 

11 to a request made under the 1st proviso of sec12 tion 3(a) of such Act, or 

13 (B) such article is held on such date under 

14 the supervision of an officer of the United 

15 States Customs and Border Protection of the 

16 Department of Homeland Security pursuant to 

17 the 2d proviso of such section 3(a). 

18 (5) DEFINITIONS.—For purposes of this sub19 section— 

20 (A) IN GENERAL.—Any term used in this 

21 subsection which is also used in section 5702 of 

22 the Internal Revenue Code of 1986 shall have 

23 the same meaning as such term has in such 

24 section. 


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1 (B) SECRETARY.—The term ‘‘Secretary’’ 

2 means the Secretary of the Treasury or the 

3 Secretary’s delegate. 

4 (6) CONTROLLED GROUPS.—Rules similar to 

5 the rules of section 5061(e)(3) of such Code shall 

6 apply for purposes of this subsection. 

7 (7) OTHER LAWS APPLICABLE.—All provisions 

8 of law, including penalties, applicable with respect to 

9 the taxes imposed by section 5701 of such Code 

10 shall, insofar as applicable and not inconsistent with 

11 the provisions of this subsection, apply to the floor 

12 stocks taxes imposed by paragraph (1), to the same 

13 extent as if such taxes were imposed by such section 

14 5701. The Secretary may treat any person who bore 

15 the ultimate burden of the tax imposed by para16 graph (1) as the person to whom a credit or refund 

17 under such provisions may be allowed or made. 

18 (c) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to articles removed (as defined in 

20 section 5702(j) of the Internal Revenue Code of 1986) 

21 after December 31, 2013. 

Æ 


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