H. B. 2617
(By Delegates Michael, Doyle, Anderson,
Frederick and Cann)
[Introduced February 23, 2005; referred to the
Committee on Finance.]
A BILL to amend and reenact §4-11A-1, §4-11A-2 and §4-11A-3 of the
Code of West Virginia, 1931, as amended, all relating to
legislative appropriation of tobacco settlement funds and
strategic contribution funds.
Be it enacted by the Legislature of West Virginia:
That §4-11A-1, §4-11A-2 and §4-11A-3 of the Code of West
Virginia, 1931, as amended, be amended and reenacted, all to read
as follows:
ARTICLE 11A. LEGISLATIVE APPROPRIATION OF TOBACCO SETTLEMENT
FUNDS; CREATION OF TOBACCO SETTLEMENT FINANCE
AUTHORITY.
§4-11A-1. Legislative findings and purpose.
(a) On the twenty-third day of November, one thousand nine
hundred ninety-eight, tobacco product manufacturers entered into a
settlement agreement with the State. This "master settlement agreement" releases those manufacturers from past, present and
specific future claims against them in return for payment of annual
sums of money to the State, obligates the manufacturers to change
their advertising and marketing practices, and requires the
establishment by the manufacturers of a national foundation for the
interests of public health.
(b) The revenues received pursuant to the master settlement
agreement,
including the strategic contribution fund, are directly
related to the past, present and future costs incurred by the
State for the treatment of tobacco-related illnesses. The purpose
of this article is to preserve the revenues received from the
settlement.
(c) The receipt of funds in accordance with the master
settlement agreement,
including the strategic contribution fund,
shall be deposited only in accordance with the provisions of this
article.
(d) West Virginia receives
approximately seventy million
dollars in revenue each year under the terms of the master
settlement agreement with the tobacco manufacturers. The revenue
is used to fund programs of vital importance to the people of West
Virginia, and the Legislature finds that it is in the best interest
of the people of this State to protect these revenues.
Additionally the State will receive the strategic contribution
funds established in the tobacco settlement fund beginning in two thousand eight and continuing through two thousand seventeen and
the Legislature finds that it is in the best interest of the people
of this State to protect these revenues also.
§4-11A-2. Receipt of settlement funds and required deposit in West
Virginia Tobacco Settlement Medical Trust Fund.
(a) The Legislature finds and declares that certain dedicated
revenues should be preserved in trust for the purpose of
stabilizing the state's health related programs and delivery
systems. It further finds and declares that
certain of these
dedicated revenues should
also be preserved in trust for the
purpose of educating the public about the health risks associated
with tobacco usage and
for the establishment of a program designed
to reduce and stop the use of tobacco by the citizens of this State
and in particular by teenagers.
(b) There is hereby created a special account in the state
treasury, designated the "West Virginia Tobacco Settlement Medical
Trust Fund", which shall be an interest-bearing account and may be
invested in the manner permitted by
section nine article six,
chapter twelve of this code, with the interest income a proper
credit to the fund. Unless contrary to federal law, fifty percent
of all revenues received pursuant to the master settlement
agreement,
including the strategic contribution fund, shall be
deposited in this fund. Funds paid into the account may also be
derived from the following sources:
(1) All interest or return on investment accruing to the
fund;
(2) Any gifts, grants, bequests, transfers or donations which
may be received from any governmental entity or unit or any person,
firm, foundation or corporation;
and
(3) Any appropriations by the Legislature which may be made
for this purpose;
and
(4) Any funds or accrued interest remaining in the Board of
Risk and Insurance Management Physicians' Mutual Insurance Company
Account created pursuant to section seven, article twenty-f,
chapter thirty-three of this code on or after the first day of
July, two thousand five.
(c) The moneys from the principal in the trust fund may not be
expended for any purpose, except that on the first day of April,
two thousand three, the treasurer shall transfer to the Board of
Risk and Insurance Management Physicians' Mutual Insurance Company
Account created by section seven, article twenty-f, chapter
thirty-three of this code, twenty-four million dollars from the
West Virginia Tobacco Settlement Medical Trust Fund for use as the
initial capital and surplus of the Physicians' Mutual Insurance
Company created pursuant to article twenty-f, chapter thirty-three
of this code. The remaining moneys in the trust fund resulting from
interest earned on the moneys in the fund and the return on
investments of the moneys in the fund shall be available only upon appropriation by the Legislature as part of the state budget and
expended in accordance with the provisions of section three of this
article.
§4-11A-3. Receipt of settlement funds and required deposit in the
West Virginia Tobacco Settlement Fund
.
(a) There is hereby created in the State Treasury a special
revenue account, designated the "Tobacco Settlement Fund", which
shall be an interest bearing account and may be invested in the
manner permitted by the provisions of article six, chapter twelve
of this code, with the interest income a proper credit to the fund.
Unless contrary to federal law, fifty percent of all revenues
received pursuant to the master settlement agreement,
including the
strategic contribution fund, shall be deposited in this fund.
These funds shall be available only upon appropriation by the
Legislature as part of the state budget.
Provided, That for the
fiscal year two thousand, the first five million dollars received
into the fund shall be transferred to the public employees
insurance reserve fund created in article two, chapter five-a of
this code
(b) Appropriations from the Tobacco Settlement Fund
and the
strategic contribution fund are limited to expenditures for the
following purposes:
(1) Reserve funds for continued support of the programs
offered by the Public Employees Insurance Agency established in article sixteen, chapter five of this code;
(2) Funding for expansion of the federal state medicaid
program as authorized by the Legislature or mandated by the federal
government;
(3) Funding for public health programs, services and agencies;
and
(4) Funding for any state-owned or operated health facilities.
(c) Notwithstanding the provisions of section two, article
two, chapter twelve of this code, moneys within the Tobacco
Settlement Trust Fund may not be redesignated for any purpose
other than those set forth in this section.
NOTE: The purpose of this bill is to add language regarding
the "strategic contribution fund" to
§4-11A-1, §4-11A-2 and
§4-11A-3
of the West Virginia Code.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.