1998 Regular Session
To: Public Health and Welfare; Appropriations
By: Representatives Moody, Flaggs, Holland, Barnett (92nd), Bourdeaux, Fredericks, Grist, Holden, Howell, Hudson, Miller, Moak, Peranich, Read, Robertson, Stevens
House Bill 1241
AN ACT TO ESTABLISH A HEALTH CARE TRUST FUND IN THE STATE TREASURY INTO WHICH SHALL BE DEPOSITED MONIES FROM THE SETTLEMENT OF THE LAWSUIT AGAINST TOBACCO COMPANIES BY THE STATE OF MISSISSIPPI; TO PROVIDE THAT THE PRINCIPAL OF THE TRUST FUND SHALL REMAIN INVIOLATE AND SHALL NEVER BE EXPENDED; TO PROVIDE THAT MONIES IN THE TRUST FUND THAT ARE SUBJECT TO EXPENDITURE SHALL BE EXPENDED EXCLUSIVELY FOR HEALTH ISSUES; TO PROVIDE THAT MONIES IN THE TRUST FUND SHALL BE INVESTED IN ANY OF THE INVESTMENTS AUTHORIZED FOR THE MISSISSIPPI PREPAID AFFORDABLE COLLEGE TUITION PROGRAM; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. This article shall be known and may be cited as the "Mississippi Health Care Trust Fund Act of 1998."
SECTION 2. It is declared by the Legislature that the monies received by the State of Mississippi from tobacco companies in settlement of a certain lawsuit brought against those companies by the State of Mississippi, or as a result of the settlement of any lawsuit brought against tobacco companies by another state, should be applied toward improving the health and health care of the citizens and residents of the state. It is the intent of the Legislature by this article to provide the manner and means necessary to carry out those purposes.
SECTION 3. When used in this article, the following definitions shall apply, unless the context requires otherwise:
(a) "Act" means the Mississippi Health Care Trust Fund Act of 1998.
(b) "Health Care Trust Fund" means the trust fund established by Section 4 of this act for the deposit of monies received by the State of Mississippi as a result of the tobacco settlement and such other monies as the state may determine are appropriate.
(c) "Tobacco settlement" means the settlement of the case of Mike Moore, Attorney General ex rel. State of Mississippi v. The American Tobacco Company et al. (Chancery Court of Jackson County, Mississippi, Cause No. 94-1429) and the settlement of any case brought against tobacco companies by another state.
SECTION 4. (1) In accordance with the purposes of this article, there is established in the State Treasury the Health Care Trust Fund, into which shall be deposited monies, including interest earnings, received by the State of Mississippi as a result of the tobacco settlement and such other monies as the state may determine are appropriate. Monies in the Health Care Trust Fund that are subject to expenditure shall be expended exclusively for health issues.
(2) The principal of the Health Care Trust Fund shall remain inviolate and shall never be expended. The Legislature may appropriate all of the income from the Health Care Trust Fund in furtherance of the purposes of this article, less six percent (6%) of the annual income of the Health Care Trust Fund, which shall be added to the principal of the fund each year.
SECTION 5. (1) The State Treasurer shall invest the monies of the Health Care Trust Fund in any of the investments authorized for the Mississippi Prepaid Affordable College Tuition Program under Section 37-155-9, and such investments shall be subject to the limitations prescribed by Section 37-155-9.
(2) All interest derived from investments and any gains from the sale or exchange of investments shall be credited to the account of the Health Care Trust Fund.
(3) For the purpose of meeting disbursements for funding health issues and the costs and expenses of administering the Health Care Trust Fund, cash may be kept available, not exceeding the requirements of the Health Care Trust Fund for a period of ninety (90) days, on deposit in one or more banks or trust companies organized under the laws of the State of Mississippi or the laws of the United States, provided that the sum on deposit in any one (1) bank or trust company shall not exceed thirty-five percent (35%) of the paid-up capital and regular surplus of the bank or trust company.
SECTION 6. Sections 1 through 5 of this act shall be inserted as a new article in Title 43, Chapter 13, Mississippi Code of 1972.
SECTION 7. This act shall take effect and be in force from and after its passage.