H. B. 3031
(By Leach, Compton, Ashley, Thompson, Fleischauer, Laird and Miller)
(Originating in the Committee on Finance)
[March 3, 1999]

A BILL to amend chapter four of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new article, designated article eleven-a, all relating to appropriations of tobacco settlement money; creating a trust fund for the deposit of tobacco settlement moneys; and authorizing certain expenditures only upon legislative appropriation.

Be it enacted by the Legislature of West Virginia:
That chapter four of the code of West Virginia, one thousand nine hundred and thirty-one, as amended, be amended by adding thereto a new article, designated article eleven-a, to read as follows:
ARTICLE 11A. LEGISLATIVE APPROPRIATION OF TOBACCO SETTLEMENT FUNDS.
§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 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.
(c) The revenues received pursuant to the master settlement agreement are directly related to the past, present and future costs incurred by the state for the treatment of tobacco related illnesses.
§4-11A-2. Receipt of settlement funds and required deposit in state treasury.
Unless contrary to federal law, all revenues received pursuant to the master settlement agreement shall be deposited in 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. 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.
§4-11A-3.Authorized appropriations.
(a) Appropriations from the tobacco settlement 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.
(b) Notwithstanding the provision 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.