HOUSE CONCURRENT RESOLUTION NO. 22

(By Delegates Compton, Douglas, Leach, Martin,

Michael and Facemyer)



Requesting the Congress of the United States to enact legislation amending the Social Security Act to exempt tobacco settlement funds from recoupment by the Health Care Financing Administration of the United States Department of Health and Human Services and to prohibit federal interference with the states' decisions on how best to utilize funds derived from their litigation against the tobacco industry.

Whereas, The states of the union, at their own expense and on their own initiative, filed and pursued the unprecedented civil litigation against the tobacco industry that resulted in the historic settlement agreement negotiated by the states and entered into on the twenty-third day of November, one thousand nine hundred ninety-eight; and
Whereas, The settlement agreement reached between the parties to the litigation was based on the past and future health care expenditures of the aggregate populations of each participating state and not solely for those states' Medicaid beneficiaries; and
Whereas, The government of the United States was not a party to any of the litigation against the tobacco industry; it did not assume any of the risk or incur any of the costs associated with the litigation; nor has it yet sought recovery of any smoking- related health care expenditures paid out under the Medicare program; and
Whereas, The Health Care Financing Administration has voluntarily suspended its efforts to recoup Medicaid matching funds from the states' tobacco settlement awards pending action by the United States Congress, which voluntary suspension may be revoked at any time; and
Whereas, The Administrator of the Health Care Financing Administration has publicly stated the ultimate intention of the federal government to recoup up to two thirds of the tobacco settlement funds from the states and to dictate how states may spend the remaining settlement funds left untouched by the federal government; and
Whereas, It would be unjust to allow the federal government to enrich itself at the states' risk and expense and, at the same time, reward itself for its own inaction with respect to recovering tobacco-related health care costs; therefore, be it
Resolved by the Legislature of West Virginia:
That the Congress of the United States is requested to enact legislation amending the Social Security Act so that funds due the states as a result of the Master Settlement Agreement reached with the tobacco industry are exempted from recoupment by the Health Care Financing Administration and prohibiting federal interference with the states in deciding how to best utilize those settlement funds; and, be it
Further Resolved, That the Clerk of the House shall, immediately upon its adoption, transmit duly authenticated copies of this resolution to the Speaker and the Clerk of the United States House of Representatives, the President Pro Tempore and the Secretary of the United States Senate, the members of the West Virginia Congressional Delegation, the Administrator of the Health Care Financing Administration, the Attorney General of the United States, and the President of the United States.


NOTE: The purpose of this resolution is to protect the integrity of the monetary award won by the states in their litigation against the tobacco industry from the federal government.

This resolution is recommended for passage in the 1999 regular session by the Legislative Oversight Commission on Health and Human Resources Accountability.