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Introduced Version House Bill 2617 History

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hb2617 intr
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.
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