SENATE BILL NO. 489

INTRODUCED BY J. BOHLINGER

A BILL FOR AN ACT ENTITLED: "AN ACT ALLOCATING TOBACCO SETTLEMENT PROCEEDS FOR A TOBACCO DISEASE AND USE PREVENTION PROGRAM, COMPREHENSIVE HEALTH CARE FOR CHILDREN, AND MEDICAL SERVICES PAID BY THE GENERAL FUND; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND AN APPLICABILITY DATE."

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

NEW SECTION. Section 1. Tobacco settlement proceeds to cover comprehensive health care and tobacco disease and use prevention program. (1) Fifty percent of the proceeds from payments received after December 1, 1998, as a portion of 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 and 50% of subsequent proceeds at the beginning of each biennium must be allocated by the legislature in the following percentages to the department of public health and human services for:

(a) the development and administration of a tobacco disease and use prevention program, 33%;

[(b) the purpose of covering comprehensive health care services provided by the children's health insurance program as provided in Senate Bill No. 81, 15%;]

(c) the reimbursement for medical services, which includes both service payments and administrative costs, that were paid by the general fund in past years, 12%; and

(d) the general fund of the state, 40%.

(2) Prior to each biennium, the department of public health and human services shall calculate the amount necessary to fund the implementation for each program listed in subsection (1) for the upcoming biennium. The amount calculated by the department of public health and human services, not to exceed 50% of the proceeds received, must be deposited in an account in the state special revenue fund to the credit of the department of public health and human services for the purposes set forth in and in the amounts provided for in subsection (1). Any unused portion of the account reverts to the state special revenue fund account at the end of the biennium.

(3) For the purposes of this section, "comprehensive health care services" means preventive and primary care services and any other allowable service as provided in 53-6-101.

NEW SECTION. Section 2. Codification instruction. [Section 1] is intended to be codified as an integral part of Title 53, chapter 4, and the provisions of Title 53, chapter 4, apply to [section 1].

NEW SECTION. Section 3. Coordination instruction. (1) If Senate Bill No. 81 is not passed and approved, then the bracketed language in [section 1 of this act] and the bracketed language in [section 1] contained in the coordination instruction for [this act] is void.

(2) If Senate Bill No. 323 is passed and approved by the electorate, then [section 1 of this act] must read as follows:

"NEW SECTION. Section 1. Tobacco settlement proceeds to cover comprehensive health care and tobacco disease and use prevention program. (1) Fifty percent of the portion of Montana's allocable share received 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 and 50% of subsequent proceeds at the beginning of each biennium must be allocated by the legislature in the following percentages to the department of public health and human services for:

(a) the development and administration of a tobacco disease and use prevention program, 33%;

[(b) the purpose of covering comprehensive health care services provided by the children's health insurance program as provided in Senate Bill No. 81, 15%;]

(c) the reimbursement for medical services, which includes both service payments and administrative costs, that were paid by the general fund in past years, 12%; and

(d) the general fund of the state, 40%.

(2) Prior to each biennium, the department of public health and human services shall calculate the amount necessary to fund the implementation for each program listed in subsection (1) for the upcoming biennium. The amount calculated by the department of public health and human services, not to exceed 50% of the proceeds estimated to be received for the upcoming biennium, must be deposited in an account in the state special revenue fund to the credit of the department of public health and human services for the purposes set forth in and in the amounts provided for in subsection (1). Any unused portion of the account reverts to the state special revenue fund account at the end of the biennium.

(3) For the purposes of this section, "comprehensive health care services" means preventive and primary care services and any other allowable service as provided in 53-6-101.

(4) The amounts allocated in subsection (1) may not be reduced."

NEW SECTION. Section 4. Effective date. [This act] is effective on passage and approval.

NEW SECTION. Section 5. Applicability. [This act] requires the department to make these calculations for the upcoming biennium and applies to programs begun on or after July 1, 1999.

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