HOUSE BILL NO. 372
INTRODUCED BY J. COBB
A BILL FOR AN ACT ENTITLED: "AN ACT ALLOCATING TOBACCO SETTLEMENT PROCEEDS; PROVIDING A STATUTORY APPROPRIATION TO THE DEPARTMENT OF PUBLIC HEALTH AND HUMAN SERVICES FOR GRANT AWARDS AND PAYMENTS TO COUNTY HEALTH DEPARTMENTS, URBAN INDIAN HEALTH CARE PROVIDERS, AND TRIBAL HEALTH DEPARTMENTS FOR HEALTH CARE-RELATED PROGRAMS; AMENDING SECTION 17-7-502, MCA; PROVIDING RULEMAKING AUTHORITY; AND PROVIDING EFFECTIVE DATES, A RETROACTIVE APPLICABILITY DATE, AND A TERMINATION DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
NEW SECTION. Section 1. Allocation of tobacco settlement proceeds. The proceeds from payments received after January 1, 1999, 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, must be allocated as follows:
(1) the first 35% of each payment to the general fund for reimbursement for medical services, which includes both service payments and administrative costs, that were paid by the general fund in past years; and
(2) of the remaining amount of total payments through June 30, 2001, the proceeds:
[(a) in the amount of $5,350,000 for the biennium to the department must be deposited in the state special revenue fund to the credit of an account established to fund the children's health insurance program;]
(b) in the amount of $9 million for each year of the biennium must be allocated to the department to fund rate increases for employee salaries and for providers to be appropriated as provided in the general appropriations act; and
(c) any remaining amount must be deposited in the state special revenue fund to the credit of an account established as the tobacco settlement account to be appropriated as provided in [section 4].
NEW SECTION. Section 2. Allocation of tobacco settlement proceeds. The proceeds from payments received after July 1, 2001, 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 subsequent proceeds must be allocated biennially as follows:
(1) 35% of each payment must be deposited in the general fund for reimbursement for medical services, which includes both service payments and administrative costs, that were paid by the general fund in past years;
(2) 25% of each payment to the department to pay for health programs and costs as provided by the legislature;
(3) 30% of each payment to the state special revenue fund to the credit of an account established as the tobacco settlement account to be appropriated as provided in [section 4]; and
(4) 10% of each payment to the department to subsidize:
(a) health insurance premiums, until a person becomes eligible for another employer-sponsored health coverage plan, to extend coverage under the COBRA continuation provision, as defined in 33-22-140, for persons who have been laid off from their jobs and who are able to show a need to continue their insurance coverage in order to avoid becoming eligible for other state medical assistance programs, and, if they have exhausted their eligibility under the COBRA continuation provision, to purchase coverage under the Montana comprehensive health association portability plan; and
(b) the premiums as provided for in 33-15-1512 of persons who are covered under the Montana comprehensive health association plan under Title 33, chapter 22, part 15. All participants shall pay at least 35% of the cost of the premium. The remainder of the premium may be subsidized on a sliding scale according to income eligibility standards set by the department by rule and as funding allows.
NEW SECTION. Section 3. Rulemaking. The department may adopt rules for income eligibility standards for a sliding scale for the premium subsidization program as provided for in [section 2]. The rules must provide preference to low-income individuals most likely to need assistance with current premiums in order to be able to maintain their health care coverage by the Montana comprehensive health association plan.
NEW SECTION. Section 4. Tobacco settlement account -- statutory appropriation. (1) The money from the tobacco settlement account is statutorily appropriated, as provided in 17-7-502, to the department to be used as follows:
(a) one-half of the funds must be awarded in grants to county health departments, urban Indian health care providers, and tribal health departments as provided in [section 5] and may include up to $100,000 for the administration of the programs as provided for in [section 5] and this section; and
(b) one-half of the funds must be distributed in payments to each county health department, each urban Indian health care provider, and the tribal health department on each reservation according to a formula set forth by the director that takes into account poverty levels, high health care risk factors, and the ability of the area to raise money through other means, with a minimum payment of $10,000 each year to each county health department, urban Indian health provider, and tribal health department.
(2) (a) The committee shall begin awarding the grants provided for in subsection (1)(a) when the half of the tobacco settlement account allocated for those grants reaches a total of $1 million after administration costs are set aside. Every 4 months after the first grant award, the committee shall meet and, if the portion of the tobacco settlement account allocated for grants in subsection (1)(a) has a balance of at least $500,000, the committee shall award new grants.
(b) The department shall begin distributing the payments provided for in subsection (1)(b) when the portion of the tobacco settlement account allocated for those payments reaches the necessary amount to make payments to each county health department, urban Indian health care provider, and tribal health department. An annual payment may be made whenever sufficient funds are in the account.
(3) Any funds remaining in the state special revenue fund account at the end of the biennium remain in the account.
NEW SECTION. Section 5. Tobacco settlement grant program -- committees -- criteria -- grants -- payments. (1) The director of the department shall appoint:
(a) a committee to develop grant criteria and grant application forms; and
(b) a committee to award grants.
(2) The committee provided for in subsection (1)(a) must be composed of members of the health care industry and department representatives appointed by the director; two senators, one appointed by the senate majority leader and one appointed by the senate minority leader; and two members of the house of representatives, one appointed by the house majority leader and one appointed by the house minority leader. Each committee member must be appointed within 30 days of [the effective date of this act]. Within 30 days of appointment, the committee shall make recommendations to the director regarding criteria by which to award grants. If the committee is unable to make recommendations within 30 days, the committee is disbanded and the director shall appoint a new committee. Once the committee has made its recommendations to the director, the committee is dissolved. The director may appoint a new committee whenever the criteria need amending.
(3) The director shall make the final decision on criteria to be used, which at a minimum must include the following:
(a) a grant may be awarded only once in a biennium to a successful applicant;
(b) grants may be used for equipment purchases, unreimbursed health care costs, pilot projects, or health insurance payments;
(c) grants are awarded for a biennial period;
(d) a grant may not exceed $1 million;
(e) a grant award must be made with consideration of the financial and economic abilities of the area to raise additional money and must be awarded to those areas that have limited ability to raise additional money;
(f) criteria must consider poverty rates and high health care risk factor rates; and
(g) grant application forms must include a request for performance standards for evaluating the health care purpose for which the grant is sought.
(4) The committee provided for in subsection (1)(b) shall notify eligible entities about the availability of grant money and shall distribute applications and outline criteria to be used for evaluation of the applications. The committee may accept grant applications at any time to be reserved for the next round of awards.
(5) The committee provided for in subsection (1)(b) must be composed of three former legislators, eight members from the health care industry, and two members from the public at large, none of whom may be employed by a health care provider or group or a local, state, or tribal government that intends to apply for a grant. An employee of the department may not be a member of this committee.
(6) Administration costs may include hiring staff, conducting business as provided in [section 4], and funding the per diem costs of the committees provided for in subsection (1). Committee members must be compensated as provided for in 2-15-122.
(7) Urban Indian health care providers include the:
(a) Leo Pocha clinic, Helena;
(b) Indian health clinic of the Native American center, Great Falls;
(c) Missoula Indian center, Missoula;
(d) Billings Indian health board, Billings; and
(e) northern American Indian health alliance, Butte.
Section 6. Section 17-7-502, MCA, is amended to read:
"17-7-502. (Temporary) Statutory appropriations -- definition -- requisites for validity. (1) A statutory appropriation is an appropriation made by permanent law that authorizes spending by a state agency without the need for a biennial legislative appropriation or budget amendment.
(2) Except as provided in subsection (4), to be effective, a statutory appropriation must comply with both of the following provisions:
(a) The law containing the statutory authority must be listed in subsection (3).
(b) The law or portion of the law making a statutory appropriation must specifically state that a statutory appropriation is made as provided in this section.
(3) The following laws are the only laws containing statutory appropriations: 2-17-105; 3-5-901; 5-13-403; 10-3-203; 10-3-310; 10-3-312; 10-3-314; 10-4-301; 15-1-111; 15-23-706; 15-30-195; 15-31-702; 15-36-324; 15-36-325; 15-37-117; 15-38-202; 15-65-121; 15-70-101; 16-1-404; 16-1-406; 16-1-411; 16-11-308; 17-3-106; 17-3-212; 17-3-222; 17-6-101; 17-7-304; 18-11-112; 19-3-319; 19-6-709; 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-305; 19-19-506; 20-8-107; 20-8-111; 20-26-1503; 22-3-1004; 23-5-136; 23-5-306; 23-5-409; 23-5-610; 23-5-612; 23-5-631; 23-7-301; 23-7-402; 37-43-204; 37-51-501; 39-71-503; 39-71-907; 39-71-2321; 42-2-105; 44-12-206; 44-13-102; [section 4]; 50-4-623; 53-6-703; 53-24-206; 67-3-205; 75-1-1101; 75-5-1108; 75-6-214; 75-11-313; 77-1-131; 80-2-103; 80-2-222; 80-4-416; 81-5-111; 82-11-161; 85-20-402; 87-1-513; 90-3-301; 90-4-215; 90-6-331; and 90-9-306.
(4) There is a statutory appropriation to pay the principal, interest, premiums, and costs of issuing, paying, and securing all bonds, notes, or other obligations, as due, that have been authorized and issued pursuant to the laws of Montana. Agencies that have entered into agreements authorized by the laws of Montana to pay the state treasurer, for deposit in accordance with 17-2-101 through 17-2-107, as determined by the state treasurer, an amount sufficient to pay the principal and interest as due on the bonds or notes have statutory appropriation authority for the payments. (In subsection (3): pursuant to sec. 7, Ch. 567, L. 1991, the inclusion of 19-6-709 terminates upon death of last recipient eligible for supplemental benefit; pursuant to sec. 7(2), Ch. 29, L. 1995, the inclusion of 15-30-195 terminates July 1, 2001; pursuant to sec. 5, Ch. 461, L. 1997, the inclusion of 77-1-131 terminates October 1, 2003; and pursuant to secs. 13, 16(1), Ch. 549, L. 1997, the inclusion of 90-3-301 terminates July 1, 1999.)
17-7-502. (Effective July 1, 2008) Statutory appropriations -- definition -- requisites for validity. (1) A statutory appropriation is an appropriation made by permanent law that authorizes spending by a state agency without the need for a biennial legislative appropriation or budget amendment.
(2) Except as provided in subsection (4), to be effective, a statutory appropriation must comply with both of the following provisions:
(a) The law containing the statutory authority must be listed in subsection (3).
(b) The law or portion of the law making a statutory appropriation must specifically state that a statutory appropriation is made as provided in this section.
(3) The following laws are the only laws containing statutory appropriations: 2-17-105; 3-5-901; 5-13-403; 10-3-203; 10-3-310; 10-3-312; 10-3-314; 10-4-301; 15-23-706; 15-30-195; 15-31-702; 15-36-324; 15-36-325; 15-37-117; 15-38-202; 15-65-121; 15-70-101; 16-1-404; [16-1-406;] 16-1-411; 16-11-308; 17-3-106; 17-3-212; 17-3-222; 17-5-404; 17-5-804; 17-6-101; 17-7-304; 18-11-112; 19-3-319; 19-6-709; 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-205; 19-19-305; 19-19-506; 20-8-107; 20-9-361; 20-26-1503; 22-3-1004; 23-5-136; 23-5-306; 23-5-409; 23-5-610; 23-5-612; 23-5-631; 23-7-301; 23-7-402; 32-1-537; 37-43-204; 37-51-501; 39-71-503; 39-71-907; 39-71-2321; 42-2-105; 44-12-206; 44-13-102; [section 4]; 50-4-623; 50-5-232; 50-40-206; 53-6-150; 53-6-703; 53-24-206; 60-2-220; 67-3-205; 75-1-1101; 75-5-1108; 75-6-214; 75-5-1108; 75-6-214; 75-11-313; 77-1-505; 80-2-103; 80-2-222; 80-4-416; 81-5-111; 82-11-136; 82-11-161; 85-1-220; 85-20-402; 87-1-513; 90-4-215; 90-6-331; 90-7-220; 90-7-221; and 90-9-306.
(4) There is a statutory appropriation to pay the principal, interest, premiums, and costs of issuing, paying, and securing all bonds, notes, or other obligations, as due, that have been authorized and issued pursuant to the laws of Montana. Agencies that have entered into agreements authorized by the laws of Montana to pay the state treasurer, for deposit in accordance with 17-2-101 through 17-2-107, as determined by the state treasurer, an amount sufficient to pay the principal and interest as due on the bonds or notes have statutory appropriation authority for the payments. (In subsection (3): pursuant to sec. 7, Ch. 567, L. 1991, the inclusion of 19-6-709 terminates upon death of last recipient eligible for supplemental benefit; and pursuant to sec. 68(2), Ch. 422, L. 1997, this version becomes effective July 1, 2008.)"
NEW SECTION. Section 7. Notification to tribal governments. The secretary of state shall send a copy of [this act] to each tribal government located on the seven Montana reservations and to the Little Shell band of Chippewa.
NEW SECTION. Section 8. Coordination instruction. If [LC 449] is not passed and approved and if no funds have been appropriated for a children's health insurance program, then the bracketed language in [section 1] is void.
NEW SECTION. Section 9. Codification instruction. [Sections 1 through 5] are intended to be codified as an integral part of Title 50, chapter 1, and the provisions of Title 50, chapter 1, apply to [sections 1 through 5].
NEW SECTION. Section 10. Effective dates. (1) Except as provided in subsection (2), [this act] is effective on passage and approval.
(2) [Section 2] is effective July 1, 2001.
NEW SECTION. Section 11. Retroactive applicability. [This act] applies retroactively, within the meaning of 1-2-109, to money recovered by the state of Montana on or after January 1, 1999, from any judgment, settlement, or fine that is received as a result of a criminal or civil claim against a tobacco company related to the production, marketing, or use of tobacco products.
NEW SECTION. Section 12. Termination. [Section 1] terminates June 30, 2001.
- END -
Latest Version of HB 372 (HB0372.01)
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Status of this Bill
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