SENATE, No. 582

STATE OF NEW JERSEY

INTRODUCED JANUARY 29, 1996

By Senators RICE, CODEY, O'Connor, Girgenti, Kenny, Adler, Lynch, Sacco, Lipman and Bryant

An Act dedicating a portion of the sales and use tax for the cost of uncompensated care in hospitals in the State, supplementing P.L.1992, c.160 (C.26:2H-18.51 et seq.), and making an appropriation therefor.

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

    1. Notwithstanding any other provision of law to the contrary, there shall be deposited annually in the Health Care Subsidy Fund established pursuant to section 8 of P.L.1992, c.160 (C.26:2H-18.58), the amount equivalent to 9.2% of the revenue collected by the State for State purposes in the prior fiscal year from the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).

    2. There is appropriated from the General Fund, from the revenues collected for State purposes by the State from the sales and use tax, the amount of $200,000,000 for deposit in the Health Care Subsidy Fund established pursuant to section 8 of P.L.1992, c.160 (C.26:2H-18.58).

    3. Sections 2 and 3 of this act shall take effect immediately and section 1 shall take effect July 1, 1996.

STATEMENT

    This bill dedicates sales and use tax collections equal to 55/100 of one cent of the six cent sales and use tax for deposit in the Health Care Subsidy Fund. The deposit of this share of the State sales and use tax will provide a stable source of annual funding for the Health Care Subsidy Fund. That fund provides moneys to hospitals for uncompensated care costs. The bill appropriates $200,000,000 to the Health Care Subsidy Fund from sales and use tax collections to pay for uncompensated care costs of hospitals during the second half of State fiscal year 1996. The current source of funds for the Health Care Subsidy Fund expired on December 31, 1995. The $200,000,000 appropriation amount is approximately one-half of the amount that may be anticipated for annual deposit in the Health Care Subsidy Fund commencing with fiscal year 1997.

Dedicates 55/100 of one cent of the State sales and use tax for the Health Care Subsidy Fund, appropriates $200,000,000 to the fund.