H. B. 201


(By Mr. Speaker, Mr. Kiss, and Delegate Trump)

[By Request of the Executive]

[Introduced June 9, 2002; referred to the

Committee on Finance.]




A BILL to amend and reenact section two, article eleven-a, chapter four of the code of West Virginia, one thousand nine hundred thirty one, as amended, relating to permitting the tobacco education program to borrow funds from the tobacco settlement medical trust fund to cover payment timing problems from the tobacco settlement fund.

Be it enacted by the Legislature of West Virginia:
That section two, article eleven-a, chapter four of the code of West Virginia, one thousand nine hundred thirty one, as amended, be amended and reenacted to read as follows:
ARTICLE 11A. LEGISLATIVE APPROPRIATION OF TOBACCO SETTLEMENT FUNDS.
§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 states health related programs and delivery systems. It further finds and declares that 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 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.
(c) The moneys from the principal in the trust fund may not be expended for any purpose. The 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.
(d) Prior to the last day of April, in any fiscal year in which funds available are inadequate to make timely payments of appropriations from the tobacco settlement fund for operations at state hospitals and the tobacco prevention program, the governor may by executive order, after first notifying the presiding officers of both houses of the legislature in writing, borrow funds from the West Virginia tobacco settlement medical trust fund. The amount of the funds borrowed may not exceed the amount appropriated from the tobacco settlement fund. Any funds borrowed pursuant to this subsection shall be repaid, without interest, and re-deposited to the credit of the West Virginia tobacco settlement medical trust fund no later than the first day of May of the same fiscal year.

NOTE: The purpose of this bill is to provide for funding for appropriations from the Tobacco Settlement Fund when carryover funds will no longer be made available from the Tobacco Settlement Fund and the only payments will be received during January and April of the fiscal year. This bill permits borrowing funds from the West Virginia Tobacco Settlement Medical Trust Fund to cover funding when the Master Settlement Agreement's payments have not yet been deposited into the Tobacco Settlement Fund. The funds will be paid back by May 1 of the same fiscal year of the borrowing of any funds from the West Virginia Tobacco Settlement Medical Trust Fund.
Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.