Sec. 1. 36 MRSA §4381 is amended to read:

§4381. Tax credited to General Fund

The revenue derived from the tax imposed by this chapter shall be is credited to the General Fund of the State, except for 40% of the revenue, which is credited to the smoker illness fund established in section 4384, subsection 3.

Sec. 2. 36 MRSA §4384 is enacted to read:

§4384.__Smoker illness program

1.__Smoker illness program.__There is established a smoker illness program to provide health coverage to eligible tobacco smokers for smoking-related diseases.__The Department of Human Services shall administer the program.

2.__Eligibility.__A person is eligible for the smoker illness program if the person contributes to the fund in subsection 3 through the purchase of tobacco products in the State.__An illness of the person is eligible for coverage if the illness is smoking related.

3.__Smoker illness fund.__There is established the smoker illness fund to carry out the purposes of the smoker illness program under this section.__The smoker illness fund consists of 40% of the proceeds of the tax levied in this chapter and chapter 704.__The Department of Human Services shall administer the smoker illness fund.__Eligible investment earnings credited to the assets of the smoker illness fund become part of the assets of that fund.__Any balance remaining in the smoker illness fund at the end of any fiscal year does not lapse but must be carried forward for the next fiscal year.

4.__Publicity and marketing.__The Department of Human Services shall actively seek to enroll eligible persons into the smoker illness program by advertising and marketing the program and working in conjunction with licensed distributors of tobacco.

5.__Rulemaking.__The Department of Human Services shall adopt rules to administer the smoker illness program, including procedures for application to the program, verifying the eligibility of applicants, verifying the illnesses of applicants, methods of health coverage and disbursements from the smoker illness fund.__Rules adopted pursuant to this section are major substantive rules pursuant to Title 5, chapter 375, subchapter 2-A.