,i #aacth ,,congress #b;d ,session ,h4 ,r4 #ebgi ,,in ,,the ,,house ,,of ,,representatives ,july #cj1 #bjad ,ms4 ,de,lauro 7for herself1 ,mr4 ,moran1 and ,ms4 ,norton7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,energy and ,commerce1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to impose an excise tax on sugar-sweetened beverages1 to dedicate the revenues from such tax to the prevention1 treatment1 and research of diet-related health conditions in priority populations1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,sugar-,sweetened ,beverages ,tax ,act of #bjad or as the ,,sweet ,act 4 #b4 ,findings and purposes 7a7 ,findings ,the ,congress finds that3 7#a7 ,the prevalence of obesity in the ,united ,states has increased dramatically over the past #cj years4 ,from the #aifjs to the late #aigjs1 the prevalence was relatively constant1 with about #ae percent of the population classified as obese4 ,after the #aigjs1 these rates began to climb4 ,according to the ,centers for ,disease ,control and ,prevention1 by #bjab more than one-third 7#cd4i percent7 of adults and #ag percent of youth in the ,united ,states were obese4 ,although no group has escaped the epidemic1 low income people and communities of color are disproportionately affected4 ,in #bjab1 nearly half 7#dg4h percent7 of ,african-,american adults were obese and #db4e percent of ,hispanic adults were obese4 7#b7 ,the percentage of children who are overweight has also increased dramatically in recent decades4 ,after being relatively constant from the #aifjs to the #aigjs1 the prevalence of overweight children has more than tripled among children between #f and #aa years of age and nearly quadrupled among those between #ab and #ai years of age4 ,despite significant public and private investment1 childhood obesity rates remain high4 ,overall1 obesity among our ,nation's young people1 aged #b-ai years1 has not changed significantly since #bjjd and remains at about #ag percent--equaling #ab4e million children and adolescents4 7#c7 ,there are significant racial and age disparities in obesity prevalence among children and adolescents4 ,in #bjaa-bjab1 obesity prevalence was higher among ,hispanics 7#bb4d percent7 and non-,hispanic black youth 7#bj4b percent7 than non-,hispanic white youth 7#ad4a percent74 ,the prevalence of obesity was lower in non-,hispanic ,asian youth 7#h4f percent7 than in youth who were non-,hispanic white1 non-,hispanic black1 or ,hispanic4 7#d7 ,overweight and obesity are responsible for an estimated #aij billion in health care costs nationally1 or approximately #e to #aj percent of all medical spending--with over #bj percent of these costs paid publicly through the ,medicare and ,medicaid programs4 ,the medical costs for people who are obese are dramatically higher 7#b1gda per year7 than those of normal weight4 7#e7 ,the obesity epidemic is of particular concern because obesity increases the risk of diabetes1 heart disease1 certain types of cancer1 arthritis1 asthma1 and breathing problems4 ,depending on their level of obesity1 from #fj percent to over #hj percent of obese adults have type #b diabetes1 high blood cholesterol1 high blood pressure1 or other related conditions4 ,according to the ,,cdc1 nearly #fj percent of overweight children have at least one risk factor for heart disease4 7#f7 ,overweight and obesity increase the risk for several types of common cancers1 including postmenopausal breast1 colorectal1 endometrial1 kidney1 pancreatic1 esophageal1 and gall bladder cancer4 ,up to one in four of all cancer cases and one in three cancer deaths are due to poor nutrition1 physical inactivity1 and overweight and obesity4 7#g7 ,there is overwhelming evidence of the link between the consumption of sugar-sweetened beverages1 such as non-diet soft drinks1 energy drinks1 sweet teas1 and sports drinks1 and obesity and diabetes4 ,adults who drink one sugar-sweetened beverage or more per day are #bg percent more likely to be overweight or obese1 regardless of income or ethnicity4 ,after six months1 daily consumption of one liter of sugar-sweetened beverages increases fat deposits in the liver by #aej percent1 which directly contributes to both diabetes and heart disease4 7#h7 ,according to nutrition experts1 sugar-sweetened beverages1 such as soft drinks1 energy drinks1 sweet teas1 and sport drinks1 offer little or no nutritional value1 but massive quantities of added sugars4 ,a #bj-ounce bottle of soda contains about #af teaspoons of sugars4 ,yet1 the ,american ,heart ,association recommends that ,americans consume no more than six to nine teaspoons of sugar per day4 7#i7 ,the #bjaj ,dietary ,guidelines stated that almost one-half of the added sugars ,americans consume come from sugar-sweetened beverages1 with the average ,american drinking nearly #de gallons of sugar-sweetened beverages a year1 the equivalent of #ci pounds of extra sugar every year4 7#aj7 ,though sugar-sweetened beverage consumption is declining modestly as people learn about their harmful health effects1 ,americans are still consuming twice as much of these products as they did in the #aigjs4 ,five percent of ,americans consume at least #efg kcal from sugar drinks on any given day--equal to more than four #ab-ounce cans of soft drink4 ,according to the ,national ,center for ,health ,statistics1 one-third of calories from added sugars 7#cc percent7 consumed in the ,united ,states were from beverages4 ,in children and adolescents1 #dj percent of the calories from added sugars came from beverages4 ,children and adolescents consume #aj to #ae percent of their total daily caloric intake from sugar-sweetened beverages4 7#aa7 ,in a study of more than #ej1jjj female nurses1 women who increased their sugar-sweetened beverage consumption from no more than one per week to at least one per day gained an average of #aj pounds over four years4 ,research also shows a significant link between sugar-sweetened beverage consumption and weight gain in children4 ,in a randomized double-blind controlled trial of roughly #fdj children1 those who were given one #h-ounce serving sugar-sweetened beverage a day gained more weight and body fat over #aa_/b years than those who got one #h-ounce serving of a sugar-free beverage4 7#ab7 ,sugar-sweetened beverages are a unique contributor to excess caloric consumption4 ,a large body of research shows that calories from sugar-sweetened beverages do not satisfy hunger the way calories from solid food or fat or protein-containing beverages such as those containing milk and plant-based proteins4 ,as a result1 sugar-sweetened beverages tend to add to the calories people consume rather than replace calories from other foods and beverages4 7#ac7 ,overweight children have a much greater chance of being obese as adults1 with all the health risks that entails4 7#ad7 ,type #b diabetes1 previously only seen among adults1 is now increasing among children4 ,data show that almost a quarter of teens now have either diabetes or prediabetes4 ,if the current trends are not reversed1 it is predicted that one in three children and nearly one-half of ,latino and ,african-,american children born in the year #bjjj will develop type #b diabetes in their lifetime4 7#ae7 ,people who consume an average amount of added sugar equivalent to one #bj-ounce soda per day are #cj percent more likely to die from a heart attack over #ae years4 ,people who consume the added sugar equivalent of at least #b-c #bj-ounce sodas per day are #b4ge times more likely to die from a heart attack4 7#af7 ,tooth decay 7dental caries7 is the single most common chronic childhood disease1 experienced by more than one-fourth of ,united ,states children aged #b-e years and half of those aged #ab-ae years4 ,about half of all children and two-thirds of adolescents aged #ab-ai years from lower-income families have had decay4 ,according to the ,american ,academy of ,pediatric ,dentistry1 children who frequently or excessively consume beverages high in sugar are at increased risk for dental caries4 ,untreated dental caries can lead to pain1 infection1 tooth loss1 and in severe cases1 even death4 ,it can slow normal growth and development by restricting nutritional intake4 ,children who are missing teeth may have chewing problems that limit their food choices and result in nutritionally inadequate diets4 7b7 ,purposes ,it is the intent of the ,congress1 by adopting the ,sugar-,sweetened ,beverages ,tax ,act 7also known as the ,,sweet ,act71 to diminish the human and economic costs of diabetes1 obesity1 dental caries1 and other diet-related health conditions4 ,this ,act is intended to discourage excessive consumption of sugar-sweetened beverages by increasing the price of these products and by creating a dedicated revenue source for programs and research designed to reduce the human and economic costs of diabetes1 obesity1 dental caries1 and other diet-related health conditions in priority populations4 #c4 ,excise tax on certain sugar-sweetened beverages 7a7 ,in general ,subchapter ,d of chapter #cb of the ,internal ,revenue ,code of #aihf is amended by inserting after part ,i the following new part3 ,,ii ,sugar-sweetened beverages ,sec4 #daga4 ,imposition of tax4 ,sec4 #dagb4 ,definitions4 ,sec4 #dagc4 ,special rules4 #daga4 ,imposition of tax 7a7 ,in general ,there is hereby imposed a tax on the sale or transfer of any specified sugar-sweetened beverage product by the manufacturer1 producer1 or importer thereof4 7b7 ,rate of tax ,the rate of tax imposed under subsection 7a7 shall be equal to one cent per #d4b grams of caloric sweetener contained in such specified sugar-sweetened beverage product4 7c7 ,persons liable for tax ,the manufacturer1 producer1 or importer referred to in subsection 7a7 shall be liable for the tax imposed by such subsection4 #dagb4 ,definitions 7a7 ,specified sugar-,sweetened beverage product ,for purposes of this part-- 7#a7 ,in general ,for purposes of this part1 the term specified sugar-sweetened beverage product means-- 7,a7 any liquid intended for human consumption which contains a caloric sweetener1 and 7,b7 any liquid1 or solid mixture of ingredients1 which-- 7i7 contains a caloric sweetener1 and 7ii7 is intended for use as an ingredient in a liquid described in subparagraph 7,a74 7#b7 ,exceptions ,the following shall not be treated as liquids described in paragraph 7#a77;,a73 7,a7 ,any liquid the primary ingredients of which are milk or soy1 rice1 or similar plant-based milk substitute4 7,b7 ,any liquid composed entirely of one or more of the following3 7i7 ,the original liquid resulting from the pressing of fruit or vegetables4 7ii7 ,the liquid resulting from the reconstitution of fruit or vegetable juice concentrate4 7iii7 ,the liquid resulting from the restoration of water to dehydrated fruit or vegetable juice4 7,c7 ,infant formula4 7,d7 ,any liquid products manufactured for use as-- 7i7 an oral nutritional therapy for persons who cannot absorb or metabolize dietary nutrients from food or beverages1 7ii7 a source of necessary nutrition used due to a medical condition1 or 7iii7 an oral electrolyte solution for infants and children formulated to prevent dehydration due to illness4 7,e7 ,any liquid with respect to which tax is imposed under chapter #ea 7relating to distilled spirits1 wines1 and beer7 or under section #gfeb by reason of the tax imposed under chapter #ea being imposed on like articles of domestic manufacture4 7b7 ,caloric sweetener ,for purposes of this part1 the term caloric sweetener means monosaccharides1 disaccharides1 and high-fructose corn syrup4 #dagc4 ,special rules 7a7 ,sweetener taxed only once ,in the case of any specified sugar-sweetened beverage product which is manufactured or produced by including one or more other specified sugar-sweetened beverage products1 no tax shall be imposed under this section on any caloric sweetener contained in the resulting specified sugar-sweetened beverage product if tax was previously imposed under this section on such caloric sweetener when contained in the specified sugar-sweetened beverage product so included4 7b7 ,inflation adjustment ,in the case of any sale after ,december #ca1 #bjae1 the one cent amount in section #daga7;b7 shall be increased by an amount equal to-- 7#a7 such amount1 multiplied by 7#b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which such sale occurs1 determined by substituting calendar year #bjad for calendar year #aiib in subparagraph 7,b7 thereof4 ,any increase determined under this subsection shall be rounded to the nearest multiple of one-tenth of a cent4 4 7b7 ,conforming amendments 7#a7 ,section #dbba7;a7 is amended by adding at the end the following3 ,paragraphs 7#a71 7#d71 7#e71 and 7#f7 shall not apply to the tax imposed under section #daga44 7#b7 ,the table of parts for subchapter ,d of chapter #cb of such ,code is amended by inserting after the item relating to part ,i the following new item3 ,part ,,ii--,sugar-,sweetened beverages 4 7c7 ,revenues used for prevention1 treatment1 and research of diet-,related health conditions in priority populations 7#a7 ,transfer to ,prevention and ,public ,health ,fund ,there are hereby appropriated to the ,prevention and ,public ,health ,fund created under section #djjb of the ,patient ,protection and ,affordable ,care ,act 7in addition to any other amounts appropriated to such ,fund7 amounts equivalent to taxes received in the ,treasury under part ,,ii of subchapter ,d of chapter #cb4 ,rules similar to the rules of section #ifja of the ,internal ,revenue ,code of #aihf shall apply with respect to amounts appropriated under this paragraph4 7#b7 ,restriction on use of funds ,notwithstanding subsections 7c7 and 7d7 of section #djjb of the ,patient ,protection and ,affordable ,care ,act1 amounts appropriated to the ,prevention and ,public ,health ,fund under paragraph 7#a7 may be transferred to accounts in the ,department of ,health and ,human ,services only for the purpose of making expenditures for programs and research designed to reduce the human and economic costs of diabetes1 obesity1 dental caries1 and other diet-related health conditions in priority populations 7within the meaning of section #ija7;c7 of the ,public ,health ,service ,act74 7d7 ,effective date 7#a7 ,in general ,except as provided in paragraph 7#b71 the amendments made by this section shall take effect on the date of the enactment of this ,act4 7#b7 ,excise tax ,the amendments made by subsections 7a7 and 7b7 shall apply to sales after the date of the enactment of this ,act4