Esta ley crea el "Fondo Especial de Estabilización de la Reforma de Salud" en el Departamento de Hacienda, financiado con parte de los impuestos sobre cigarrillos y bebidas alcohólicas. El fondo será administrado por el Secretario del Departamento de Salud para ayudar a cubrir los costos de la reforma de salud.
(Approved August 7, 2002)
To create, in the books of the Department of the Treasury, a special fund denominated the "Special Health Reform Stabilization Fund" to be nurtured from part of the collections from the tax on cigarettes and alcoholic beverages, to be administered by the Secretary of the Department of Health, in order to help cover the costs of the health reform.
Health problems have always been of great concern for the people, health professionals, and most of all, for the Government of the Commonwealth of Puerto Rico. Throughout the years, and due to this concern, finding a solution for these problems has been given the highest priority and substantial resources have been devoted to it.
At the end of the past administration, the Health Reform had resulted in a deficit estimated in 1.2 billion dollars, financed with non-recurrent funds. The operational deficit of the Health Reform has been financed through several loans granted by the Government Development Bank.
On the other hand, the difficult financial situation suffered by our government during the last fiscal year is known by all. This situation began with the financial disaster caused by the insufficiency of funds, which exceeded five hundred million dollars, inherited from the past administration. At the same time, the persisting financial deceleration, together with the events that occurred in New York City, significantly
affected the structural gap between the income and the recurrent expenses legislated on, and approved by the past administration.
Although the present administration has taken extraordinary steps to expedite and strengthen the local economy and to promote the use and consumption of goods and services, they have not been enough. The measures we need to approve should not only balance the budget for the next fiscal year, but should also guarantee the financial solvency and the good credit of the Commonwealth of Puerto Rico. Therefore, we must reevaluate the measures taken, as well as to seek other alternatives to consign funds to the public treasury, always taking into account, and affecting in the least way possible, the good quality of like that our people deserve.
At this time, the Government of the Commonwealth of Puerto Rico deems it necessary to create a special fund and denominate it as the "Special Health Reform Stabilization Fund". This fund shall be nurtured with part of the collections from the excise tax on cigarettes and alcoholic beverages, and shall be administered by the Secretary of the Department of Health.
Section 1.- A special fund denominated the "Special Health Reform Stabilization Fund" is hereby created in the books of the Department of the Treasury. This special fund shall be administered by the Secretary of the Department of Health.
Section 2.- The deposits to this "Special Health Reform Stabilization Fund" shall be made from part of the collections received as of July 1, 2002, from the excise tax on cigarettes fixed by Section 2009, and on distilled spirits, wine, and beer established in Sections 4002 and 4023 of Act No. 120 of October 31, 1994, as amended, known as the Puerto Rico Internal Revenue Code of 1994, itemized as follows:
Cigarettes under Section 2009 $2.00 per each hundred or fraction of one hundred (100) cigarettes
Distilled Spirits under Section 4002
(a) (1) $8.54 on each gallon measure
(b) (2) $4.12 on each gallon measure
Wines under Section 4002
(b) (1) $0.45 cents per each gallon measure
(b) (2) $3.10 per each gallon measure
(b) (3) $0.17 cents for each gallon measure
(b) (4) $1.13 per each gallon measure
(b) (5)(A) $3.75 per each gallon measure
(b) (5)(B) $1.50 per each gallon measure
(b) (5)(C) $0.60 cents per each gallon measure
Beers under Section 4002
(c) (1) $0.30 cents for each gallon measure
(c) (2) $1.35 per each gallon measure
(c) (3) $1.37 per each gallon measure
Beers, Malt Extracts and other Similar Products under Section 4023 $0.84 cents per each gallon measure
Section 2.- This Act shall take effect immediately after its approval.
I hereby certify to the Secretary of State that the following Act No. 112 (S.B. 1319) of the $\underline{3}^{ ext {rd }}$ Session of the $\underline{14}^{ ext {th }}$ Legislature of Puerto Rico:
AN ACT to create, in the books of the Department of the Treasury, a special fund denominated the "Special Health Reform Stabilization Fund" to be nurtured from part of the collections from the tax on cigarettes and alcoholic beverages, to be administered by the Secretary of the Department of Health, in order to help cover the costs of the health reform, has been translated from Spanish to English and that the English version is correct.
In San Juan, Puerto Rico, today $18^{ ext {th }}$ of October of 2002.
Elba Rosa Rodríguez-Fuentes Director