Sec. V-1. 22 MRSA c. 260-A is enacted to read:
CHAPTER 260-A
SETTLEMENT FUNDS
§1511. Fund for a Healthy Maine established
1. Fund established. The Fund for a Healthy Maine, referred to in this chapter as the "fund," is established as an Other Special Revenue fund for the purposes specified in this chapter.
2. Sources of fund. The State Controller shall credit to the fund:
A. All money received by the State in settlement of or in relation to the lawsuit State of Maine v. Philip Morris, et al., Kennebec County Superior Court, Docket No. CV-97-134;
B. Money from any other source, whether public or private, designated for deposit into or credited to the fund; and
C. Interest earned or other investment income on balances in the fund.
3. Allocation; amounts. The following provisions govern the allocations of the fund.
A. For the first 5 years that the State receives money described in subsection 2, paragraph A, the Treasurer of State shall report to the Legislature the amount that represents 90% of the annual payment that is expected to be received pursuant to subsection 2, paragraph A and available for allocation for the purposes specified in subsection 6. The remainder of the annual payment is to be allocated to the Trust Fund for a Healthy Maine as established in section 1512 to earn income and provide resources to pay for the purposes specified in subsection 6 if the source of the fund described in subsection 2, paragraph A stops.
B. After the first 5 years that the State receives money pursuant to subsection 2, paragraph A, the Treasurer of State shall report to the Legislature the amount that is available for allocation for the purposes specified in subsection 6 equal to 90% of the sum of the amount expected to be available in the fund from all sources. The remaining funds must be held in a contingency reserve.
C. The amount being held as the contingency reserve may be used only for the purposes stated in subsection 6 and then only as determined under paragraph B of this subsection.
4. Restrictions. This section does not require the provision of services for the purposes specified in subsection 6. When allocations are made to direct services, services to lower income consumers must have priority over services to higher income consumers. Allocations from the fund must be used to supplement, not supplant, appropriations from the General Fund.
5. General Fund limitation. Notwithstanding any provision to the contrary in this section, any program, expansion of a program, expenditure or transfer authorized by the Legislature using the Fund for a Healthy Maine may not be transferred to the General Fund without specific legislative approval.
6. Health purposes. Allocations under subsection 3 are limited to the following health-related purposes:
A. Smoking prevention, cessation and control activities, including, but not limited to, reducing smoking among the children of the State;
B. Prenatal and young children's care including home visits and support for parents of children from birth to 6 years of age;
C. Child care for children up to 15 years of age, including after-school care;
D. Health care for children and adults, maximizing to the extent possible federal matching funds;
E. Prescription drugs for adults who are elderly or disabled, maximizing to the extent possible federal matching funds;
F. Dental and oral health care to low-income persons who lack adequate dental coverage;
G. Substance abuse prevention and treatment; and
H. Comprehensive school health programs, including school-based health centers.
7. Investment; plan; report. Notwithstanding Title 5, section 135, the Treasurer of State shall invest and reinvest the money in the contingency reserve in accordance with the standards defined in Title 18-A, section 7-302.
A. The Treasurer of State shall develop and implement a prudent and profitable investment plan for the contingency reserve under subsection 3. The plan must attempt to maximize return and minimize risk.
B. The Treasurer of State shall report at least annually on or before the 2nd Friday in December to the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs and the joint standing committee of the Legislature having jurisdiction over health and human services matters. The report must fulfill the requirements of subsection 3 and summarize the activity in any funds or accounts directly related to this section.
§1512. Trust Fund for a Healthy Maine established
1. Fund established. Notwithstanding the provisions of Title 5, section 135-A, the Trust Fund for a Healthy Maine, referred to in this section as the "fund," is established as a nonexpendable trust fund.
2. Sources of fund. The State Controller shall credit to the fund:
A. All allocations by the Legislature to the fund in accordance with section 1511, subsection 3, paragraph A; and
B. Money from any other source, whether public or private, designated for deposit into or credited to the fund.
3. Investment of funds. The money in the fund may be invested by the Treasurer of State with the assistance of one or more fiduciaries or registered investment advisors. The duties and expenses of the fiduciaries or registered investment advisors must be handled in a manner consistent with Title 5, section 17108, subsections 2 and 3. All earnings must be credited to the fund.
4. Nonlapsing fund. Any unexpended balance in the fund may not lapse, but must be carried forward for the benefit of the fund.
Sec. V-2. Report; legislation. The Treasurer of State shall submit by December 10, 1999 a report to the Joint Standing Committee on Appropriations and Financial Affairs. The committee may report out legislation based on the Treasurer of State's report to the Second Regular Session of the 119th Legislature.
Sec. V-3. PL 1999, c. 16, Pt. B, §1, under that part designated "DEPARTMENT OF HUMAN SERVICES," that part related to "Bureau of Health" is repealed.
Sec. V-4. Working capital advance. The State Controller is authorized to advance to the Bureau of Health Other Special Revenue Fund Account in the Department of Human Services $3,500,000 from the General Fund unappropriated surplus on July 1, 1999 to be allotted by financial order upon the recommendation of the State Budget Officer and approval of the Governor for the purpose of continuing the tobacco prevention and control initiative, which must be returned to the General Fund from the Fund for a Healthy Maine no later than June 30, 2000.
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