HOUSE BILL NO. 303

INTRODUCED BY B. KRENZLER

A BILL FOR AN ACT ENTITLED: "AN ACT RESTRICTING THE USE OF TOBACCO SETTLEMENT PROCEEDS TO PURPOSES RELATED TO CLAIMS MADE; AND PROVIDING AN EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

NEW SECTION. Section 1. Restriction on use of tobacco settlement proceeds. (1) Payments received after December 1, 1998, as Montana's allocable share pursuant to the master settlement agreement in Civil Action No. 9700306-14, filed in the first judicial district as the settlement of a legal action against participating tobacco product manufacturers, may not be used for any purpose that is not related to the claims for injunctive relief, damages, restitution, disgorgement, penalties, and other relief sought in the first amended complaint.

(2) In using the proceeds to address the claims for relief sought in the first amended complaint, the following areas may be targeted for appropriation:

(a) public disclosure of past research and to continue research and dissemination of information regarding the health effects and public health risks of tobacco use;

(b) public disclosure of past research and to continue research and dissemination of information on the addictive qualities of nicotine;

(c) prevention and discouragement of targeting of youth to become consumers of tobacco by preventing distribution and sale of tobacco products to minors;

(d) prevention of marketing of tobacco products to minors; and

(e) payment of and restitution for increased payments for medical care services for those on public assistance, the needy, indigents, and other eligible residents and for increased medical insurance premium payments provided by the state for state employees.

NEW SECTION. Section 2. Codification instruction. [Section 1] is intended to be codified as an integral part of Title 50, chapter 1, part 2, and the provisions of Title 50, chapter 1, part 2, apply to [section 1].

NEW SECTION. Section 3. Effective date. [This act] is effective July 1, 1999.

NEW SECTION. Section 4. Retroactive applicability. [This act] applies retroactively, within the meaning of 1-2-109, to payments received after December 1, 1998, as Montana's allocable share pursuant to the master settlement agreement in Civil Action No. 9700306-14 filed in the first judicial district as the settlement of a legal action filed against participating tobacco product manufacturers.

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