PRINTER'S NO. 2603
No. 48 Session of 1999
INTRODUCED BY O'BRIEN, ARMSTRONG, BAKER, BARRAR, BATTISTO,
BEBKO-JONES, BROWNE, BUNT, L. I. COHEN, COLAFELLA, COY,
DeLUCA, FAIRCHILD, GODSHALL, GORDNER, HERMAN, KENNEY,
LAUGHLIN, LEVDANSKY, McNAUGHTON, OLIVER, ORIE, PIPPY, PLATTS,
SATHER, SAYLOR, SCHULER, SEMMEL, SHANER, B. SMITH, STEELMAN,
STURLA, SURRA, E. Z. TAYLOR, J. TAYLOR, THOMAS, TIGUE,
WILLIAMS AND WILT, NOVEMBER 8, 1999
REFERRED TO COMMITTEE ON HEALTH AND HUMAN SERVICES,
NOVEMBER 8, 1999
AN ACT
1 Providing for the establishment of a tobacco settlement recovery
2 fund; designating the tobacco litigation master settlement
3 agreement funds to be utilized for health-related purposes;
4 establishing an advisory board; providing for tobacco
5 litigation master settlement agreement funds to be utilized
6 for medical research, study and investigation which seeks to
7 manage and ultimately cure tobacco-related illnesses and
8 diseases, and toward the funding, creation and promulgation
9 of programs which seek to aid individuals in the cessation of
10 smoking or attempt to prevent individuals from ever beginning
11 to use tobacco products; and improving the delivery of health
12 care services and containment of costs.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Short title.
16 This act shall be known and may be cited as the Health
17 Opportunities for Pennsylvanians Enhancement Fund Act.
18 Section 2. Declaration of policy.
19 The General Assembly finds and declares that the human
20 tragedy of tobacco-related disease is enormous in this
1 Commonwealth, that thousands of Pennsylvanians die each year
2 from tobacco-related illnesses and, because the immense
3 resources involved with treating such tobacco-related illnesses,
4 as well as providing for other health needs in this
5 Commonwealth, have created a significant and pressing strain on
6 this Commonwealth's hospitals and health care facilities, the
7 purpose of this act is to create a State fund with the proceeds
8 from the Commonwealth's settlement with the tobacco industry in
9 order to address the issues involving the dangers of tobacco use
10 and to address other vital health needs. Further purposes of
11 this act are to use a portion of the proceeds from the
12 Commonwealth's settlement with the tobacco industry in order to
13 help with the transformation of the Commonwealth's health care
14 delivery system into the new millennium and also to use these
15 funds toward medical research, study and investigation to manage
16 and ultimately cure tobacco-related illnesses and diseases, and
17 toward the funding, creation and promulgation of programs to aid
18 individuals in the cessation of smoking or attempt to prevent
19 individuals from ever beginning to use tobacco products.
20 Priority will be given to those initiatives that focus on
21 children and adolescent health education.
22 Section 3. Definitions.
23 The following words and phrases when used in this act shall
24 have the meanings given to them in this section unless the
25 context clearly indicates otherwise:
26 "Advisory board." The Health Opportunities for
27 Pennsylvanians Enhancement Fund Advisory Board established to
28 advise the Governor and the General Assembly on use of the
29 settlement funds for health-related purposes.
30 "Health Opportunities for Pennsylvanians Enhancement Fund."
19990H0048B2603 - 2 -
1 The tobacco settlement recovery fund which designates the
2 tobacco litigation master settlement agreement funds to be
3 utilized for health-related purposes.
4 "Tobacco litigation master settlement agreement." The master
5 settlement agreement relating to tobacco litigation entered into
6 in 1998 by the Commonwealth and leading United States tobacco
7 product manufacturers.
8 Section 4. Establishment of fund.
9 (a) Establishment.--All settlement funds received by the
10 Commonwealth related to the settlement of the Commonwealth's
11 civil action against the parties of Philip Morris, Inc., R.J.
12 Reynolds Tobacco Company, Brown & Williamson Tobacco Corporation
13 and Lorillard Tobacco Company, or any successor to one of the
14 above-named settling parties, shall be deposited into a special
15 fund in the State Treasury to be known as the Health
16 Opportunities for Pennsylvanians Enhancement Fund, which is
17 hereby established.
18 (b) Trust funds.--All moneys deposited into the fund shall
19 be held in trust and shall not be considered general revenue of
20 the Commonwealth but shall be used only to effectuate the
21 purposes of this act as determined by the Governor with the
22 advice of the advisory board and shall be subject to audit by
23 the Auditor General.
24 (c) Additional deposits.--All interest, dividends and
25 capital gains earned from the deposit of moneys accumulated in
26 the fund shall be deposited in the fund for the same use.
27 (d) Statute required.--No moneys shall be appropriated from
28 the fund without the approval of the General Assembly by
29 statute.
30 Section 5. Advisory board.
19990H0048B2603 - 3 -
1 (a) Establishment of board.--There is hereby established an
2 advisory board of nine members to be known as the Health
3 Opportunities for Pennsylvanians Enhancement Fund Advisory
4 Board.
5 (b) Composition.--The board shall be composed of nine
6 individuals who possess significant experience, knowledge,
7 education, training, expertise or proficiency in the realm of
8 health care policy, management or administration. Membership of
9 the advisory board shall be as follows:
10 (1) four members, one each to be appointed by the
11 President pro tempore of the Senate, the Minority Leader of
12 the Senate, the Speaker of the House of Representatives and
13 the Minority Leader of the House of Representatives. These
14 members shall have experience in the areas of public health,
15 health care delivery or medical research;
16 (2) the Secretary of Health or his or her designee;
17 (3) the Insurance Commissioner or his or her designee;
18 and
19 (4) three additional members to be appointed by the
20 Governor as follows:
21 (i) Two representatives of the public at large, one
22 of whom shall be appointed for a two-year term and the
23 other for a one-year term.
24 (ii) One member experienced in public health, health
25 care delivery or health care finance who will be
26 appointed for a one-year term.
27 (c) Terms.--Except where noted, members shall serve for
28 three-year terms. The Governor may reappoint board members for
29 successive terms, but no member of the advisory board shall
30 serve for more than a total of three terms. Advisory board
19990H0048B2603 - 4 -
1 members shall remain in office until a successor is appointed
2 and qualified. Vacancies in the membership of the advisory board
3 shall be filled for the balance of the unexpired term in the
4 same manner as the original appointment.
5 (d) Chairman.--The Governor shall appoint the chairman from
6 one of his appointees.
7 (e) Meetings.--The advisory board shall be established and
8 have its first meeting no later than 60 days following the
9 effective date of this act to develop a plan and funding
10 priorities consistent with this act and ensure that the use of
11 these funds complement and do not duplicate any similar Federal
12 or State initiatives. This plan shall be completed and sent to
13 the Governor, the General Assembly and the State Treasurer by
14 December 31, 1999. Thereafter, the advisory board shall meet at
15 least biannually to:
16 (1) Evaluate the status of prior fund disbursements.
17 (2) Review education and awareness training programs
18 related to the risks of tobacco usage.
19 (3) Recommend priorities for future expenditures and
20 disbursements from the fund.
21 (4) Recommend further legislation that it deems
22 necessary to further the purposes of this act.
23 (5) Prepare an annual report for the Governor and the
24 General Assembly, including recommendations for legislative
25 action and regulatory change when needed and appropriate.
26 (f) Expenses.--The Department of Health shall reimburse
27 members of the advisory board for all necessary and reasonable
28 travel and other expenses incurred in the performance of their
29 duties under this section.
30 (g) Staff support.--The Department of Health shall provide
19990H0048B2603 - 5 -
1 staff support and assistance to the advisory board.
2 Section 6. Use and expenditure of funds.
3 Subject to section 4(d), the award and disbursement of moneys
4 in the fund shall be limited to the following purposes:
5 (1) Health care services for the uninsured.
6 (2) Medical research.
7 (3) Health promotion, preventive health and smoking
8 cessation programs.
9 (4) Improvement in health care delivery.
10 (5) Ensuring adequate long-term and hospice care
11 availability and affordability.
12 Section 7. Effective date.
13 This act shall take effect immediately.
J22L35SFL/19990H0048B2603 - 6 -