H. B. 2153


(By Delegate Mezzatesta)
[Introduced January 13, 2003; referred to the
Committee on Health and Human Resources then Finance.]
A BILL to amend and reenact section four-e, article twenty-one, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended; to amend and reenact section six, article five-p, chapter sixteen of said code; and to further amend said article five-p, by adding thereto a new section, designated section ten-a, all relating to the "senior citizens prescription drug subsidy program"; enumerating criteria to be used in determining eligibility to participate; requiring the bureau for senior services to administer the program; requiring transfer of those funds into a special account for the program; naming the account; increasing the rate at the maximum level of taxation for personal income by three percent and providing that the income derived from this increase shall be placed in a special account and used for the "senior citizens prescription drug subsidy program".

Be it enacted by the Legislature of West Virginia:
That section four-e, article twenty-one, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; that section six, article five- p, chapter sixteen of said code be amended and reenacted; and that said article five-p be further amended by adding thereto a new section, designated section ten-a, all to read as follows:
CHAPTER 11. TAXATION.

PART I. GENERAL.

ARTICLE 21. PERSONAL INCOME TAX.
§11-21-4e. Rate of tax -- Taxable years beginning on or after January 1, 1987.

(a) (Rate of tax on individuals (except married individuals filing separate returns,) individuals filing joint returns, heads of households, estates and trusts.) -- The tax imposed by section three of this article on the West Virginia taxable income of every individual (except married individuals filing separate returns); every individual who is a head of a household in the determination of his or her federal income tax for the taxable year; every husband and wife who file a joint return under this article; every individual who is entitled to file his or her federal income tax return for the taxable year as a surviving spouse; and every estate and trust shall be determined in accordance with the following table:
If the West Virginia
taxable income is:The tax is:

Not over $10,0003% of the taxable income

Over $l0,000 but not$300.00 plus 4% of excess
over $25,000over $10,000

Over $25,000 but not$900.00 plus 4.5% of excess
over $40,000over $25,000

Over $40,000 but not$1,575.00 plus 6% of excess
over $60,000over $40,000

Over $60,000 $2,775.00 plus 6.5% of excess
over $60,000

(b) (Rate of tax on married individuals filing separate returns.) -- In the case of husband and wife filing separate returns under this article for the taxable year, the tax imposed by section three of this article on the West Virginia taxable income of each spouse shall be determined in accordance with the following table:
If the West Virginia
taxable income is:The tax is:

Not over $5,0003% of the taxable income

Over $5,000 but not$l50.00 plus 4% of excess
over $l2,500over $5,000

Over $l2,500 but not$450.00 plus 4.5% of
over $20,000excess over $l2,500

Over $20,000 but not$787.50 plus 6% of excess
over $30,000over $20,000

Over $30,000$l,387.50 plus 6.5% of
excess over $30,000

(c) Applicability of this section. -- The provisions of this section, as amended by this act, shall be applicable in determining the rate of tax imposed by this article for all taxable years beginning after the thirty-first day of December, one thousand nine hundred eighty-six, and shall be in lieu of the rates of tax specified in section four-d of this article.
(d) Beginning the first day of April, two thousand three, the tax rate for the excess of income over thirty thousand dollars shall be nine and one-half percent. The increase collected on personal income tax generated by this amendment to this section (three percent) shall be deposited in a special account hereby created in the treasury, named the "Senior Citizen's Drug Prescription Assistance Fund" and, subject to appropriation by the Legislature, used by the senior citizen's prescription drug subsidy program to subsidize, within the funds available, the cost of prescription drugs for eligible persons over the age of sixty-five in accordance with the provisions of section ten-a, article five-p, chapter sixteen of this code.
CHAPTER 16. PUBLIC HEALTH.

ARTICLE 5P. SENIOR SERVICES.
§16-5P-6. Powers and duties generally.
The commissioner shall be the executive and administrative head of the bureau and shall have has the power and duty to:
(a) Exercise general supervision of the bureau;
(b) Propose legislative rules for the effective and expeditious performance and discharge of the duties and responsibilities placed upon the commissioner by law;
(c) Conduct and coordinate studies of the problems of encountered by the state's older people citizens;
(d) Encourage and promote the establishment of local programs and services for the aging;
(e) Conduct public education programs of public education on the problems of the related to aging;
(f) Review state programs for the aging, and annually make recommendations to the governor and the Legislature;
(g) Encourage and assist governmental and private agencies to coordinate effective efforts on behalf of the aging;
(h) Coordinate statewide local and voluntary efforts to serve the aging and develop programs at the local level;
(i) Supervise fiscal management and responsibilities of the bureau;
(j) Keep an accurate and complete record of all bureau proceedings, record and file all bonds and contracts and assume responsibility for the custody and preservation of all papers and documents of the bureau;
(k) Submit an annual report to the governor on the condition, operation and functioning of the bureau;
(l) Invoke any legal or special remedy for the enforcement of orders or the provisions of this chapter;
(m) Standardize administration, expedite bureau business, revise rules and promote the efficiency of the service;
(n) Provide a program of continuing professional, technical and specialized instruction for the personnel of the bureau and local service providers; and
(o) Receive on behalf of the state any grant or gift and accept the same, so that the title shall pass to the state. All moneys from grants or gifts shall be deposited with the state treasurer in a special fund and shall be used for the purposes set forth in the grant or gift; and
(p) Administer the program provided for in section ten-a of this article by subsidizing, within the funds available, the cost of prescription drugs for eligible persons over the age of sixty-five.
§16-5P-10a. Senior citizens prescription drug subsidy program. (a) There is hereby created a senior citizens prescription drug subsidy program, which shall be administered by the bureau of senior services in accordance with the provisions of this section and within the funding made available through the provisions of section ten, article twenty-two-a, chapter twenty-nine of this code and any appropriations: Provided, That the provisions of this section shall not be construed to require legislative appropriations. The program shall be designed to provide a subsidy for prescription medications purchased by eligible citizens over the age of sixty-five: Provided, however, That the otherwise eligible citizen does not qualify for other third-party reimbursement for prescription drugs. Funds administered as reimbursement for prescription drugs under the provisions of this section may be paid directly to qualified pharmaceutical providers, or the eligible citizen, upon proof of purchase.
(b) The bureau shall propose legislative rules in accordance with the provisions of article three, chapter twenty-nine-a of this code, to accomplish the following:
(1) Establish eligibility guidelines for program participation based on income and the need for the prescription drugs;
(2) Develop criteria, which is to be applied uniformly, to determine which pharmaceutical providers may participate in the program;
(3) Determine the percentage of subsidy to be provided based on the cost of the particular prescription drug, the availability of an equivalent generic prescription drug, and the amount of funds available in the account;
(4) Develop criteria, which is to be applied uniformly, to determine the circumstances in which a pharmaceutical provider or eligible person would be declared ineligible;
(5) Develop a system to verify that the prescription drug has actually been dispensed to the eligible person; and
(6) Maintain a registry of companies and organizations that provide free medications, and make this information available to consumers through all local senior programs.




NOTE: The purpose of this bill is to create the "Senior Citizens Prescription Drug Subsidy Program." Provisions of the bill include: (1) Enumerating criteria to be used in determining eligibility to benefit from the program; (2) requiring the bureau of senior citizens to administer the program; and (3) providing for an increase in the tax rate for personal income tax at the maximum level by three percent and that the income generated by this individual income tax increase be placed in a special account and used to fund the program.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

§10-5P-10a is new; therefore, strike-throughs and underscoring have been omitted.