PRINTER'S NO. 691
No. 48 Session of 1999
INTRODUCED BY MOWERY, JUBELIRER, LOEPER, BRIGHTBILL, WENGER,
SALVATORE, MELLOW, BODACK, O'PAKE, MUSTO, ARMSTRONG, BELAN,
BELL, BOSCOLA, CONTI, CORMAN, COSTA, DENT, EARLL, FUMO,
GERLACH, GREENLEAF, HART, HELFRICK, HOLL, HUGHES, KASUNIC,
KITCHEN, KUKOVICH, LAVALLE, LEMMOND, MADIGAN, MURPHY,
PICCOLA, PUNT, RHOADES, ROBBINS, SCHWARTZ, SLOCUM, STAPLETON,
STOUT, TARTAGLIONE, THOMPSON, TILGHMAN, TOMLINSON, WAGNER,
WAUGH, WHITE, WILLIAMS AND WOZNIAK, MARCH 23, 1999
INTRODUCED AND ADOPTED, MARCH 23, 1999
A RESOLUTION
1 Memorializing the Congress to support and pass legislation
2 protecting the states from Federal recoupment of tobacco
3 settlement funds or Federal restrictions on the states'
4 spending of tobacco settlement funds.
5 WHEREAS, In 1994, several states initiated the first lawsuits
6 against the tobacco industry based on violations of state law;
7 and
8 WHEREAS, In 1997, suit was filed by Attorney General D.
9 Michael Fisher on behalf of the Commonwealth; and
10 WHEREAS, In November 1998, Attorneys General from 46 states,
11 including the Commonwealth, signed a settlement agreement with
12 the five largest tobacco manufacturers; and
13 WHEREAS, As part of the national settlement with the tobacco
14 industry, the tobacco industry will pay the states more than
15 $200 billion to settle all state lawsuits; and
16 WHEREAS, The Commonwealth will be the recipient of more than
1 $11 billion over the next 25 years; and
2 WHEREAS, The national tobacco settlement was solely
3 attributable to states' efforts, was based on state costs and
4 was reached without any assistance from the Federal Government;
5 and
6 WHEREAS, The Federal Government is attempting to recoup a
7 sizeable portion of the states' settlement on the theory that
8 section 1903(d)(3) of the Social Security Act (49 Stat. 620, 42
9 U.S.C. § 1396b(d)(3)) entitles the Federal Government to a pro
10 rata share of the net amount recovered by a state from liable
11 third parties for the amount spent under Medicaid on behalf of
12 eligible individuals; and
13 WHEREAS, The Federal Government is not entitled to take away
14 from the states any funds negotiated on their behalf to settle
15 state lawsuits for recovery of state costs; and
16 WHEREAS, The Federal Government can initiate its own lawsuit
17 or settlement with the tobacco industry to recoup Federal
18 Medicaid funds; and
19 WHEREAS, Recently, there have been unsuccessful efforts in
20 the United States Senate to earmark or otherwise impose Federal
21 restrictions on the respective states' use of state tobacco
22 settlement funds; and
23 WHEREAS, The payments to the Commonwealth will be used to
24 fund important programs and initiatives in this Commonwealth as
25 determined by the General Assembly; therefore be it
26 RESOLVED, That the Senate of the Commonwealth of Pennsylvania
27 memorialize the Congress of the United States to enact
28 legislation clarifying section 1903(d)(3) of the Social Security
29 Act (49 Stat. 620, 42 U.S.C. § 1396b(d)(3)) to protect the
30 states from Federal seizure of any portion of the tobacco
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1 settlement funds by the Secretary of Health and Human Services
2 as an overpayment under the Federal Medicaid program; and be it
3 further
4 RESOLVED, That the Senate commend the United States Senate
5 for its recent actions to protect the states from loss of
6 autonomy over use of the funds and memorialize Congress to
7 support and enact legislation to fully recognize the states'
8 complete autonomy over the expenditure of state tobacco
9 settlement funds; and be it further
10 RESOLVED, That copies of this resolution be transmitted to
11 the presiding officers of each house of Congress and to each
12 member of Congress from Pennsylvania.
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