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 Afford-
able Care Act to provide additional funds to permit addi-
tional individuals to enroll under the preexisting condi-
tion insurance program and expand eligibility, to be 
funded through a temporary increase in the cigarette 
tax, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. EXTENSION OF FUNDING FOR REOPENING EN-
ROLLMENT UNDER THE PREEXISTING CONDI-
TION INSURANCE PROGRAM. 
(a) IN GENERAL.—Subsection (g)(1) of section 1101 
of the Patient Protection and Affordable Care Act (42 
U.S.C. 18001) is amended by striking ‘‘Such funds’’ and 
inserting the following: ‘‘In addition to the funds appro-
priated under the previous sentence, there is appropriated 
to the Secretary, out of any moneys in the Treasury not 
otherwise appropriated, $2,800,000,000 to pay claims 
(and administrative costs) described in such sentence. 
Funds appropriated under this paragraph’’. 
(b) REOPENING PROGRAM ENROLLMENT.—The Sec-
retary of Health and Human Services shall resume taking 
applications for participation under the temporary high- 
risk health insurance program under such section 1101, 
but only to the extent consistent with the limitation im-
posed under subsection (g)(4) of such section. 
(c) CONSTRUCTION.—Nothing in this section shall be 
construed as changing the application of subsection (g)(3) 
of such section (relating to termination of authority). 
SEC. 2. IMMEDIATE ACCESS TO HEALTH CARE FOR SICK 
AMERICANS. 
(a) IN GENERAL.—Section 1101(d) of the Patient 
Protection and Affordable Care Act (42 U.S.C. 18001(d)) 
is amended— 
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(1) in paragraph (1), by adding at the end 
‘‘and’’; 
(2) by striking paragraph (2); and 
(3) by redesignating paragraph (3) as para-
graph (2). 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply with respect to individuals ap-
plying for coverage through the high risk insurance pool 
program on or after the date of the enactment of this Act. 
SEC. 3. INCREASE IN RATE OF EXCISE TAX ON CIGARETTES. 
(a) IN GENERAL.—Section 5701(b)(1) of the Internal 
Revenue Code of 1986 is amended by inserting ‘‘($52.33 
per thousand in the case of cigarettes removed after De-
cember 31, 2013 and before January 1, 2024)’’ after 
‘‘$50.33 per thousand’’. 
(b) FLOOR STOCKS TAXES.— 
(1) IMPOSITION
OF
TAX.—On cigarettes de-
scribed in section 5701(b)(1) of the Internal Rev-
enue Code of 1986 manufactured in or imported into 
the United States which are removed before January 
1, 2014, and held on such date for sale by any per-
son, there is hereby imposed a tax in an amount 
equal to the excess of— 
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(A) the tax which would be imposed under 
section 5701 of such Code on the article if the 
article had been removed on such date, over 
(B) the prior tax (if any) imposed under 
section 5701 of such Code on such article. 
(2) CREDIT AGAINST TAX.—Each person shall 
be allowed as a credit against the taxes imposed by 
paragraph (1) an amount equal to $500. Such credit 
shall not exceed the amount of taxes imposed by 
paragraph (1) on January 1, 2014, for which such 
person is liable. 
(3) LIABILITY FOR TAX AND METHOD OF PAY-
MENT.— 
(A) LIABILITY FOR TAX.—A person hold-
ing cigarettes referred to in paragraph (1) on 
January 1, 2014, to which any tax imposed by 
paragraph (1) applies shall be liable for such 
tax. 
(B) METHOD OF PAYMENT.—The tax im-
posed by paragraph (1) shall be paid in such 
manner as the Secretary shall prescribe by reg-
ulations. 
(C) TIME
FOR
PAYMENT.—The tax im-
posed by paragraph (1) shall be paid on or be-
fore May 1, 2014. 
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(4) ARTICLES
IN
FOREIGN
TRADE
ZONES.— 
Notwithstanding the Act of June 18, 1934 (com-
monly known as the Foreign Trade Zone Act, 48 
Stat. 998, 19 U.S.C. 81a et seq.) or any other provi-
sion of law, any article which is located in a foreign 
trade zone on July 1, 2013, shall be subject to the 
tax imposed by paragraph (1) if— 
(A) internal revenue taxes have been deter-
mined, or customs duties liquidated, with re-
spect to such article before such date pursuant 
to a request made under the 1st proviso of sec-
tion 3(a) of such Act, or 
(B) such article is held on such date under 
the supervision of an officer of the United 
States Customs and Border Protection of the 
Department of Homeland Security pursuant to 
the 2d proviso of such section 3(a). 
(5) DEFINITIONS.—For purposes of this sub-
section— 
(A) IN GENERAL.—Any term used in this 
subsection which is also used in section 5702 of 
the Internal Revenue Code of 1986 shall have 
the same meaning as such term has in such 
section. 
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(B) SECRETARY.—The term ‘‘Secretary’’ 
means the Secretary of the Treasury or the 
Secretary’s delegate. 
(6) CONTROLLED
GROUPS.—Rules similar to 
the rules of section 5061(e)(3) of such Code shall 
apply for purposes of this subsection. 
(7) OTHER LAWS APPLICABLE.—All provisions 
of law, including penalties, applicable with respect to 
the taxes imposed by section 5701 of such Code 
shall, insofar as applicable and not inconsistent with 
the provisions of this subsection, apply to the floor 
stocks taxes imposed by paragraph (1), to the same 
extent as if such taxes were imposed by such section 
5701. The Secretary may treat any person who bore 
the ultimate burden of the tax imposed by para-
graph (1) as the person to whom a credit or refund 
under such provisions may be allowed or made. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to articles removed (as defined in 
section 5702(j) of the Internal Revenue Code of 1986) 
after December 31, 2013. 
Æ 
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