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 -