MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Finance

By: Senator(s) Furniss

AN ACT TO ESTABLISH A HEALTH CARE TRUST FUND AND A STATE VETERANS HOMES 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 IN EACH TRUST FUND SHALL REMAIN INVIOLATE AND SHALL NEVER BE EXPENDED; TO PRESCRIBE THE PURPOSES FOR WHICH MONIES IN THE TRUST FUNDS MAY BE EXPENDED; TO PROVIDE THAT MONIES IN THE TRUST FUNDS 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 and State Veterans Homes Trust Funds Act of 1999."

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, including eligible veterans of Mississippi who receive domiciliary care in homes established by the State Veterans Affairs Board. 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 and State Veterans Homes Trust Funds Act of 1999.

(b) "Health Care Trust Fund" means the trust fund established by Section 4 of this act.

(c) "State Veterans Homes Trust Fund" means the trust fund established by Section 5 of this act.

(d) "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 all monies with the exception of the monies described in Section 5 of this act, that are received by the State of Mississippi as a result of the tobacco settlement for which the use or purpose for expenditure is not restricted by the terms of the settlement, all interest earnings on those monies, and any 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) In accordance with the purposes of this article, there is established in the State Treasury the State Veterans Homes Trust Fund, into which shall be deposited Sixty Million Dollars ($60,000,000.000) of the monies that are received by the State of Mississippi as a result of the tobacco settlement for which the use or purpose for expenditure is not restricted by the terms of the settlement. Monies in the State Veterans Homes Trust Fund that are subject to expenditure shall be expended exclusively for the operation, management and upkeep of homes and domiciliaries established by the State Veterans Affairs Board and for the health care of eligible veterans of the state residing therein.

(2) The principal of the State Veterans Homes Trust Fund shall remain inviolate and shall never be expended. The Legislature may appropriate all of the income from the State Veterans Homes Trust Fund in furtherance of the purposes of this article. Unexpended amounts remaining in the trust fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned on amounts in the trust fund shall be deposited to the credit of the trust fund.

SECTION 6. (1) The State Treasurer shall invest the monies of the Health Care Trust Fund and the State Veterans Homes Trust Fund in any of the investments authorized for the Mississippi Prepaid Affordable College Tuition Program under Section 37-155-9, and those 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 or the State Veterans Homes Trust Fund, as may be appropriate.

(3) In order to provide disbursements for funding the purposes of this article and the costs and expenses of administering the Health Care Trust Fund and the State Veterans Homes Trust Fund, cash may be kept available, not exceeding the requirements of the Health Care Trust Fund or the State Veterans Homes 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 7. Sections 1 through 5 of this act shall be inserted as a new article in Title 43, Chapter 13, Mississippi Code of 1972.

SECTION 8. This act shall take effect and be in force from and after its passage.