House Bill NO. 519

By Senator(s) Committee

SECTION 1. 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 2. When used in this article, the following definitions shall apply, unless the context requires otherwise:

(a) "Health Care Principal Fund" means the trust fund established by Section 3 of this act for the deposit of Two Hundred Twenty-five Million Dollars ($225,000,000.00) of the monies received by the State of Mississippi as a result of the tobacco settlement as of the end of Fiscal Year 1999 and seventy-five percent (75%) of all tobacco settlement installment payments made in subsequent years.

(b) "Health Care Expendable Fund" means the fund established by Section 4 of this act for the deposit of all monies in excess of Two Hundred Twenty-five Million Dollars ($225,000,000.00) received by the State of Mississippi as a result of the tobacco settlement as of the end of Fiscal Year 1999, and twenty-five percent (25%) of all tobacco settlement installment payments made in subsequent years, including income earnings.

(c) "Income" means all interest and dividends derived from the investment of any tobacco settlement funds and any capital gains from the sale or exchange of such investments.

(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 3. In accordance with the purposes of this article, there is established in the State Treasury the Health Care Principal Fund, into which shall be deposited Two Hundred Twenty-five Million Dollars ($225,000,000.00) of the monies received by the State of Mississippi as a result of the tobacco settlement as of the end of Fiscal Year 1999, and seventy-five percent (75%) of all tobacco settlement installment payments made in subsequent years. The Health Care Principal Fund shall remain inviolate and shall never be expended. Provided, however, that if the federal Health Care Finance Administration, or other agency of the federal government, is successful in recouping tobacco settlement funds from the State of Mississippi, or if the federal share of funds for the support of the Mississippi Medicaid Program is reduced, the Legislature may appropriate from the Health Care Principal Fund such sums as are necessary to recoup funds lost through such federal action. The income from the Health Care Principal Fund shall be deposited into the Health Care Expendable Fund established in Section 4.

SECTION 4. In accordance with the purposes of this article, there is established in the State Treasury the Health Care Expendable Fund, into which shall be deposited all monies in excess of Two Hundred Twenty-five Million Dollars ($225,000,000.00), including income earnings, received by the State of Mississippi as a result of the tobacco settlement as of the end of Fiscal Year 1999, and twenty-five percent (25%) of all tobacco settlement installment payments made in subsequent years, including income earnings, and such other monies as the state may determine are appropriate. Monies in the Health Care Expendable Fund shall be available for expenditure pursuant to specific appropriation by the Legislature beginning in Fiscal Year 2000, and shall be expended exclusively for health care purposes.

SECTION 5. (1) The State Treasurer may invest up to one-half (1/2) of the monies of the Health Care Principal Fund and the Health Care Expendable 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) For the purpose of meeting disbursements for funding health issues and the costs and expenses of administering the Health Care Principal Fund and the Health Care Expendable Fund, cash may be kept available, not exceeding the requirements of the appropriate 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 July 1, 1999, and shall stand repealed from and after July 2, 1999.

AN ACT TO ESTABLISH A HEALTH CARE PRINCIPAL FUND IN THE STATE TREASURY INTO WHICH SHALL BE DEPOSITED $225,000,000.00 OF THE MONIES FROM THE SETTLEMENT OF THE LAWSUIT AGAINST TOBACCO COMPANIES BY THE STATE OF MISSISSIPPI PLUS 75% OF FUTURE INSTALLMENT PAYMENTS; TO PROVIDE THAT THE PRINCIPAL FUND SHALL REMAIN INVIOLATE AND SHALL NEVER BE EXPENDED, WITH CERTAIN EXCEPTIONS; TO ESTABLISH A HEALTH CARE EXPENDABLE FUND IN THE STATE TREASURY INTO WHICH SHALL BE DEPOSITED ALL MONIES IN EXCESS OF $225,000,000.00 OF THE TOBACCO SETTLEMENT MONIES PLUS 25% OF FUTURE INSTALLMENT PAYMENTS, INCLUDING ALL INCOME EARNED BY THE FUNDS, AND TO PROVIDE THAT SAID FUND SHALL BE AVAILABLE FOR APPROPRIATION FOR HEALTH CARE PURPOSES; TO PROVIDE THAT MONIES IN THE HEALTH CARE EXPENDABLE FUND SHALL BE EXPENDED EXCLUSIVELY FOR HEALTH CARE PURPOSES; TO PROVIDE THAT UP TO 50% OF THE MONIES IN THE FUNDS SHALL BE INVESTED IN ANY OF THE INVESTMENTS AUTHORIZED FOR THE MISSISSIPPI PREPAID AFFORDABLE COLLEGE TUITION PROGRAM; AND FOR RELATED PURPOSES.