AN ACT to amend the Indiana Code concerning state offices and administration and to
make an appropriation.
SECTION 1. IC 4-12-1-14.3, AS ADDED BY P.L.273-1999,
SECTION 232, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2000]: Sec. 14.3. (a) As used in this section,
"master settlement agreement" has the meaning set forth in
IC 24-3-3-6.
(b) There is hereby created the Indiana tobacco master settlement
agreement fund for the purpose of depositing and distributing money
received under the master settlement agreement. The fund consists
of:
(1) all money received by the state from under the master
settlement agreement; with the United States' tobacco product
manufacturers.
(2) appropriations made to the fund by the general assembly;
and
(3) grants, gifts, and donations intended for deposit in the
fund.
(c) Money may be expended, transferred, or distributed from
the fund during a state fiscal year only in amounts permitted by
subsections (d) through (e), and only if the expenditures, transfers,
or distributions are specifically authorized by another statute.
(d) The maximum amount of expenditures, transfers, or
distributions that may be made from the fund during the state
fiscal year beginning July 1, 2000, is determined under STEP
THREE of the following formula:
STEP ONE: Determine the sum of money received or to be
received by the state under the master settlement agreement
before July 1, 2001.
STEP TWO: Subtract from the STEP ONE sum the amount
appropriated by P.L.273-1999, SECTION 8, to the children's
health insurance program from funds accruing to the state
from the tobacco settlement for the state fiscal years
beginning July 1, 1999, and July 1, 2000.
STEP THREE: Multiply the STEP TWO remainder by fifty
percent (50%).
(e) The maximum amount of expenditures, transfers, or
distributions that may be made from the fund during the state
fiscal year beginning July 1, 2001, and each state fiscal year after
that is equal to sixty percent (60%) of the amount of money
received or to be received by the state under the master settlement
agreement during that state fiscal year.
(f) The following amounts shall be retained in the fund and may
not be expended, transferred, or otherwise distributed from the
fund:
(1) All of the money that is received by the state under the
master settlement agreement and remains in the fund after
the expenditures, transfers, or distributions permitted under
subsections (c) through (e).
(2) All interest that accrues from investment of money in the
fund, unless specifically appropriated by the general
assembly.
(g) The fund shall be administered by the budget agency.
Notwithstanding IC 5-13, the treasurer of state shall invest the money
in the fund not currently needed to meet the obligations of the fund in
the same manner as other public money is invested by the public
employees retirement fund under
IC 5-10.3-5.
The treasurer of
state may contract with investment management professionals,
investment advisors, and legal counsel to assist in the management
of the fund and may pay the state expenses incurred under those
contracts from the fund. Interest that accrues from these investments
shall be deposited in the fund. Money in the fund at the end of the state
fiscal year does not revert to the state general fund.
(h) The state general fund is not liable for payment of a shortfall
in expenditures, transfers, or distributions from the Indiana
tobacco master settlement agreement fund or any other fund due
to a delay, reduction, or cancellation of payments scheduled to be
received by the state under the master settlement agreement. If
such a shortfall occurs in any state fiscal year, all expenditures,
transfers, and distributions affected by the shortfall shall be
reduced proportionately.
SECTION 2.
IC 4-12-4
IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE APRIL
1, 2000]:
Chapter 4. Indiana Tobacco Use Prevention and Cessation
Trust Fund
Sec. 1. As used in this chapter, "executive board" refers to the
Indiana tobacco use prevention and cessation executive board
created by section 4 of this chapter.
Sec. 2. As used in this chapter, "fund" refers to the Indiana
tobacco use prevention and cessation trust fund created by this
chapter.
Sec. 3. As used in this chapter, "master settlement agreement"
has the meaning set forth in
IC 24-3-3-6.
Sec. 4. (a) The Indiana tobacco use prevention and cessation
executive board is created.
(b) The executive board is an agency of the state.
(c) The executive board consists of the following:
(1) The following five (5) ex officio members:
(A) The executive director employed under section 6 of this
chapter.
(B) The state superintendent of public instruction, or the
state superintendent's designee.
(C) The attorney general, or the attorney general's
designee.
(D) The commissioner of the state department of health, or
the commissioner's designee.
(E) The secretary of the family and social services
administration, or the secretary's designee.
(2) Eleven (11) members who are appointed by the governor
and have knowledge, skill, and experience in smoking
reduction and cessation programs, health care services, or
preventive health care measures.
(3) Six (6) members who are appointed by the governor who
represent the following organizations:
(A) The American Cancer Society.
(B) The American Heart Association, Indiana Affiliate.
(C) The American Lung Association of Indiana.
(D) The Indiana Hospital and Health Association.
(E) The Indiana State Medical Association.
(F) The Indiana Council of Community Mental Health
Centers.
The executive director serves as a nonvoting member and all other
members serve as voting members.
(d) During a member's term of service on the executive board,
an appointed member of the executive board may not be an official
or employee of the state.
(e) Not more than six (6) members of the executive board
appointed under subsection (c)(2) may belong to the same political
party.
(f) A member appointed under subsection (c)(2) serves a four (4)
year term and shall hold over after the expiration of the member's
term until the member's successor is appointed and qualified. A
member appointed under subsection (c)(3) serves until the member
resigns or is removed from the executive board by the governor.
(g) The governor may reappoint an appointed member of the
executive board.
(h) A vacancy with respect to a member appointed under
subsection (c)(2) shall be filled for the balance of an unexpired
term in the same manner as the original appointment. A vacancy
with respect to a member appointed under subsection (c)(3) shall
be filled in the same manner as the original appointment.
(i) The governor shall designate a member to serve as
chairperson of the executive board. The executive board shall
annually elect one (1) of its ex officio members as vice chairperson
and may elect any other officer that the executive board desires.
(j) The governor may remove a member appointed under
subsection (c)(2) for misfeasance, malfeasance, willful neglect of
duty, or other cause after notice and a public hearing, unless the
member expressly waives the notice and hearing in writing.
Sec. 5. (a) An appointed member of the executive board who is
not a state employee is entitled to the minimum salary per diem
provided by
IC 4-10-11-2.1
(b). Each appointed member is entitled
to reimbursement for traveling expenses and other expenses
actually incurred in connection with the member's duties.
(b) An ex officio member of the executive board is entitled to
reimbursement for traveling expenses and other expenses actually
incurred in connection with the member's duties.
Sec. 6. (a) The executive board may:
(1) employ an executive director; and
(2) delegate necessary and appropriate functions and
authority to the executive director.
(b) Subject to the approval of the executive board, the executive
director may do the following:
(1) Employ staff necessary to advise and assist the executive
board as required by this chapter.
(2) Fix compensation of staff according to the policies
currently enforced by the budget agency and the state
personnel department.
(3) Engage experts and consultants to assist the executive
board.
(4) Expend funds made available to the staff according to the
policies established by the budget agency.
(5) Establish policies, procedures, standards, and criteria
necessary to carry out the duties of the staff of the executive
board.
Sec. 7. (a) Eleven (11) voting members of the executive board
constitute a quorum for:
(1) the transaction of business at a meeting of the executive
board; or
(2) the exercise of a power or function of the executive board.
(b) The affirmative vote of a majority of all the voting members
of the executive board is necessary for the executive board to take
action. A vacancy in the membership of the executive board does
not impair the right of a quorum to exercise all the rights and
perform all the duties of the executive board.
(c) The executive board shall meet at least quarterly and at the
call of the chairperson.
Sec. 8. (a) The executive board is a public agency for purposes
of
IC 5-14-1.5
and
IC 5-14-3.
(b) The executive board is a governing body for purposes of
IC 5-14-1.5.
Sec. 9. In addition to any other power granted by this chapter,
the executive board may:
(1) adopt an official seal and alter the seal at its pleasure;
(2) adopt rules, under
IC 4-22-2
, for the regulation of its
affairs and the conduct of its business and prescribe policies
in connection with the performance of its functions and
duties;
(3) accept gifts, devises, bequests, grants, loans,
appropriations, revenue sharing, other financing and
assistance, and any other aid from any source and agree to
and comply with conditions attached to that aid;
(4) make, execute, and effectuate any and all contracts,
agreements, or other documents with any governmental
agency or any person, corporation, limited liability company,
association, partnership, or other organization or entity
necessary or convenient to accomplish the purposes of this
chapter, including contracts for the provision of all or any
portion of the services the executive board considers
necessary for the management and operations of the executive
board;
(5) recommend legislation to the governor and general
assembly; and
(6) do any and all acts and things necessary, proper, or
convenient to carry out this article.
Sec. 10. (a) The Indiana tobacco use prevention and cessation
trust fund is established. The executive board may expend money
from the fund and make grants from the fund to implement the
long range state plan established under this chapter. General
operating and administrative expenses of the executive board are
also payable from the fund.
(b) The fund consists of:
(1) amounts, if any, that another statute requires to be
distributed to the fund from the Indiana tobacco master
settlement agreement fund;
(2) appropriations to the fund from other sources;
(3) grants, gifts, and donations intended for deposit in the
fund; and
(4) interest that accrues from money in the fund.
(c) The fund shall be administered by the executive board.
Notwithstanding IC 5-13, the treasurer of state shall invest the
money in the fund not currently needed to meet the obligations of
the fund in the same manner as money is invested by the public
employees retirement fund under
IC 5-10.3-5.
The treasurer of
state may contract with investment management professionals,
investment advisors, and legal counsel to assist in the management
of the fund and may pay the state expenses incurred under those
contracts. Money in the fund at the end of a state fiscal year does
not revert to the state general fund.
(d) All income and assets of the executive board deposited in the
fund are for the use of the executive board without appropriation.
Sec. 11. (a) The executive board shall develop:
(1) a mission statement concerning prevention and reduction
of the usage of tobacco and tobacco products in Indiana,
including:
(A) emphasis on prevention and reduction of tobacco use
by minorities, pregnant women, children, and youth,
including seriously and emotionally disturbed youth;
(B) encouragement of smoking cessation;
(C) production and distribution of information concerning
the dangers of tobacco use and tobacco related diseases;
(D) providing research on issues related to reduction of
tobacco use;
(E) enforcement of laws concerning sales of tobacco to
youth and use of tobacco by youth; and
(F) other activities that the executive board considers
necessary and appropriate for inclusion in the mission
statement; and
(2) a long range state plan, based on Best Practices for
Tobacco Control Programs as published by the Centers for
Disease Control and Prevention, for:
(A) the provision of services by the executive board, public
or private entities, and individuals to implement the
executive board's mission statement; and
(B) the coordination of state efforts to reduce usage of
tobacco and tobacco products.
The executive board shall update the mission statement and long
range state plan as necessary to carry out the purposes of this
chapter.
(b) The long range state plan described in subsection (a) must:
(1) cover a period of at least five (5) years;
(2) include base line data concerning tobacco usage;
(3) set forth specific goals for prevention and reduction of
tobacco usage in Indiana; and
(4) be made available to the governor, the general assembly,
and any other appropriate state or federal agency.
Sec. 12. A public or private entity or an individual may submit
an application to the executive board for a grant from the fund.
Each application must be in writing and contain the following
information:
(1) A clear objective to be achieved with the grant.
(2) A plan for implementation of the specific program.
(3) A statement of the manner in which the proposed program
will further the goals of the executive board's mission
statement and long range state plan.
recommendations to the executive committee concerning:
(1) the development and implementation of the mission
statement and long range state plan under section 11 of this
chapter;
(2) the criteria to be used for the evaluation of grant
applications under this chapter;
(3) the coordination of public and private efforts concerning
reduction and prevention of tobacco usage; and
(4) any other matters for which the executive board requests
recommendations from the advisory committee.
(d) Members of the advisory committee are not entitled to a
salary per diem or reimbursement of expenses for service on the
advisory committee.
(e) The advisory committee may establish subcommittees as
necessary to carry out its duties under this section.
SECTION 3.
IC 4-12-5
IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE APRIL
1, 2000]:
Chapter 5. Indiana Health Care Trust Fund
Sec. 1. As used in this chapter, "fund" refers to the Indiana
health care trust fund established by section 3 of this chapter.
Sec. 2. As used in this chapter, "master settlement agreement"
has the meaning set forth in
IC 24-3-3-6.
Sec. 3. (a) The Indiana health care trust fund is established for
the purpose of promoting the health of the citizens of Indiana. The
fund consists of:
(1) amounts, if any, that another statute requires to be
distributed to the fund from the Indiana tobacco master
settlement agreement fund;
(2) appropriations to the fund from other sources;
(3) grants, gifts, and donations intended for deposit in the
fund; and
(4) interest that accrues from money in the fund.
(b) The fund shall be administered by the budget agency.
Notwithstanding IC 5-13, the treasurer of state shall invest the
money in the fund not currently needed to meet the obligations of
the fund in the same manner as money is invested by the public
employees retirement fund under
IC 5-10.3-5.
The treasurer of
state may contract with investment management professionals,
investment advisors, and legal counsel to assist in the management
of the fund and may pay the state expenses incurred under those
contracts. Money in the fund at the end of the state fiscal year does
not revert to the state general fund.
Sec. 4. Subject to appropriation by the general assembly, review
by the budget committee, and approval by the budget agency, the
treasurer of state shall distribute money from the fund to public or
private entities or individuals for the implementation of programs
concerning one (1) or more of the following purposes:
(1) The children's health insurance program established
under IC 12-17.6.
(2) Cancer detection tests and cancer education programs.
(3) Heart disease and stroke education programs.
(4) Assisting community health centers in providing:
(A) vaccinations against communicable diseases, with an
emphasis on service to youth and senior citizens;
(B) health care services and preventive measures that
address the special health care needs of minorities (as
defined in
IC 16-46-6-2
); and
(C) health care services and preventive measures in rural
areas.
(5) Promoting health and wellness activities.
(6) Encouraging the prevention of disease, particularly
tobacco related diseases.
(7) Addressing the special health care needs of those who
suffer most from tobacco related diseases, including end of life
and long term care alternatives.
(8) Addressing minority health disparities.
(9) Addressing the impact of tobacco related diseases,
particularly on minorities and females.
(10) Promoting community based health care, particularly in
areas with a high percentage of underserved citizens,
including individuals with disabilities, or with a shortage of
health care professionals.
(11) Enhancing local health department services.
(12) Expanding community based minority health
infrastructure.
(13) Other purposes recommended by the Indiana health care
trust fund advisory board established by section 5 of this
chapter.
Sec. 5. (a) The Indiana health care trust fund advisory board is
established. The advisory board shall meet at least quarterly and
at the call of the chairperson to make recommendations to the
governor, the budget agency, and the general assembly concerning
the priorities for appropriation and distribution of money from the
fund.
(b) The advisory board consists of the following:
(1) The following three (3) ex officio members:
(A) The director of the budget agency or the director's
designee.
(B) The commissioner of the state department of health or
the commissioner's designee.
(C) The secretary of family and social services or the
secretary's designee.
(2) Two (2) members of the senate, who may not be members
of the same political party, appointed by the president pro
tempore of the senate.
(3) Two (2) members of the house of representatives, who may
not be members of the same political party, appointed by the
speaker of the house.
(4) The following appointees by the governor who represent
the following organizations or interests:
(A) The Indiana Dental Association.
(B) The Indiana Hospital and Health Association.
(C) The Indiana Minority Health Coalition.
(D) The Indiana Chapter of the American Academy of
Pediatrics.
(E) The Indiana State Medical Association.
(F) The Indiana State Nurses Association.
(G) The Indiana Health Care Association.
(H) A local health officer or a rural health organization.
(I) A primary health care organization.
(J) A senior citizens organization.
(K) The Indiana Chapter of the National Medical
Association.
(L) A consumer or representative of an end of life care
organization, an alternative to long term care services, or
a disability organization.
(M) A psychiatrist licensed under IC 25-22.5 or a
psychologist licensed under IC 25-33.
(c) The term of office of a legislative member of the advisory
board is four (4) years. However, a legislative member of the
advisory board ceases to be a member of the advisory board if the
member:
(1) is no longer a member of the chamber from which the
member was appointed; or
(2) is removed from the advisory board under subsection (d).
tobacco master settlement agreement fund.
(m) The budget agency shall serve as the staff to the advisory
committee.
Sec. 6. A public or private entity or an individual may submit an
application to the board for a grant from the fund. Each
application must be in writing and contain the following
information:
(1) A clear objective to be achieved with the grant.
(2) A plan for implementation of the specific program.
(3) A statement of the manner in which the proposed program
will further the goals of the Indiana tobacco use prevention
and cessation board's mission statement and long range state
plan under
IC 4-12-4.
(4) The amount of the grant requested.
(5) An evaluation and assessment component to determine the
program's performance.
(6) Any other information required by the advisory board.
The advisory board may adopt written guidelines to establish
procedures, forms, additional evaluation criteria, and application
deadlines.
Sec. 7. Appropriations and distributions from the fund under
this chapter are in addition to and not in place of other
appropriations or distributions made for the same purpose.
SECTION 4.
IC 4-12-6
IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2001]:
Chapter 6. Biomedical Technology and Basic Research Trust
Fund
Sec. 1. As used in this chapter, "fund" refers to the biomedical
technology and basic research trust fund established by section 3
of this chapter.
Sec. 2. As used in this chapter, "master settlement agreement"
has the meaning set forth in
IC 24-3-3-6.
Sec. 3. (a) The biomedical technology and basic research trust
fund is established for the purpose of making distributions to the
Indiana twenty-first century research and technology fund
established by
IC 4-4-5.1.
The fund consists of:
(1) amounts, if any, that another statute requires to be
distributed to the fund from the Indiana tobacco master
settlement agreement fund;
(2) grants, gifts, and donations intended for deposit in the
fund; and
(3) interest that accrues from money in the fund.
(b) The fund shall be administered by the budget agency.
Notwithstanding IC 5-13, the treasurer of state shall invest the
money in the fund not currently needed to meet the obligations of
the fund in the same manner as money is invested by the public
employees retirement fund under
IC 5-10.3-5.
The treasurer of
state may contract with investment management professionals,
investment advisors, and legal counsel to assist in the management
of the fund and may pay the state expenses incurred under those
contracts. Money in the fund at the end of the state fiscal year does
not revert to the state general fund.
Sec. 4. Subject to appropriation by the general assembly, review
by the budget committee, and approval by the budget agency, the
treasurer of state shall distribute money from the fund to public
and private entities to support biomedical technology and basic
research initiatives, giving priority to initiatives that address
tobacco related illnesses and that leverage matching dollars from
federal or private sources.
Sec. 5. Appropriations and distributions from the fund under
this chapter are in addition to and not in place of other
appropriations or distributions made for the same purpose.
SECTION 5.
IC 4-12-7
IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2001]:
Chapter 7. Indiana Local Health Department Trust Fund
Sec. 1. As used in this chapter, "fund" refers to the Indiana local
health department trust fund established by section 4 of this
chapter.
Sec. 2. As used in this chapter, "local board of health" means
the board of a:
(1) county health department established under
IC 16-20-2
;
(2) multiple county health department established under
IC 16-20-3
;
(3) city health department established under
IC 16-20-4
; or
(4) health and hospital corporation established under
IC 16-22-8.
Sec. 3. As used in this chapter, "master settlement agreement"
has the meaning set forth in
IC 24-3-3-6.
Sec. 4. (a) The Indiana local health department trust fund is
established for the purpose of making distributions to each county
to provide funding for services provided by local boards of health
in that county. The fund consists of:
(1) money required to be distributed to the fund under
subsection (b);
(2) additional amounts, if any, that another statute requires to
be distributed to the fund from the Indiana tobacco master
settlement agreement fund;
(3) appropriations to the fund from other sources;
(4) grants, gifts, and donations intended for deposit in the
fund; and
(5) interest that accrues from money in the fund.
(b) Three million dollars ($3,000,000) of the money received by
the state under the master settlement agreement during each
calendar year beginning on or after January 1, 2001, shall be
distributed to the fund from the Indiana tobacco master settlement
agreement fund.
(c) The fund shall be administered by the budget agency.
Notwithstanding IC 5-13, the treasurer of state shall invest the
money in the fund not currently needed to meet the obligations of
the fund in the same manner as money is invested by the public
employees retirement fund under
IC 5-10.3-5.
The treasurer of
state may contract with investment management professionals,
investment advisors, and legal counsel to assist in the management
of the fund and may pay the state expenses incurred under those
contracts. Money in the fund at the end of the state fiscal year does
not revert to the state general fund.
Sec. 5. (a) Subject to subsection (b) and subject to review by the
budget committee and approval by the budget agency, on July 1 of
each year the treasurer of state shall distribute money from the
fund to each county in the amount determined under STEP FOUR
of the following formula:
STEP ONE: Determine the amount of money, if any, available
for distribution from the fund.
STEP TWO: Subtract nine hundred twenty thousand dollars
($920,000) from the amount determined under STEP ONE.
STEP THREE: Multiply the STEP TWO remainder by a
fraction. The numerator of the fraction is the population of
the county. The denominator of the fraction is the population
of the state.
STEP FOUR: Add ten thousand dollars ($10,000) to the STEP
THREE product.
(b) If less than nine hundred twenty thousand dollars ($920,000)
is available for distribution from the fund on July 1 of any year,
the amount of the distribution from the fund to each county is
determined under STEP TWO of the following formula.
STEP ONE: Determine the amount of money, if any, available
for distribution from the fund.
STEP TWO: Multiply the STEP ONE amount by a fraction.
The numerator of the fraction is the population of the county.
The denominator of the fraction is the population of the state.
Sec. 6. If only one (1) local board of health exists in a county, the
county fiscal body shall appropriate all distributions received by
the county under this chapter to that local board of health. If more
than one (1) local board of health exists in a county, the county
fiscal body shall appropriate all distributions received by the
county under this chapter to those local boards of health in
amounts determined by the county fiscal body.
Sec. 7. In using money distributed under this chapter, a local
board of health shall give priority to:
(1) programs that share common goals with the mission
statement and long range state plan established by the
Indiana tobacco use prevention and cessation board;
(2) preventive health measures; and
(3) support for community health centers that treat low
income persons and senior citizens.
Sec. 8. Appropriations and distributions from the fund under
this chapter are in addition to and not in place of other
appropriations or distributions made for the same purpose.
Sec. 9. Money in the fund is annually appropriated for the
purposes described in this chapter.
SECTION 6.
IC 4-12-8
IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]:
Chapter 8. Indiana Prescription Drug Fund
Sec. 1. As used in this chapter, fund" refers to the Indiana
prescription drug fund established by section 2 of this chapter.
Sec. 2. (a) The Indiana prescription drug fund is established for
the purpose of providing access to needed prescription drugs to
ensure the health and welfare of Indiana's low-income senior
citizens. The fund consists of:
(1) amounts to be distributed to the fund from the Indiana
tobacco master settlement agreement fund;
(2) appropriations to the fund from other sources;
(3) grants, gifts, and donations intended for deposit in the
fund; and
(4) interest that accrues from money in the fund.
(b) The fund shall be administered by the budget agency.
Expenses for administration and benefits under the Indiana
prescription drug program established under
IC 12-10-16
shall be
paid from the fund. Notwithstanding IC 5-13, the treasurer of state
shall invest the money in the fund not currently needed to meet the
obligations of the fund in the same manner as money is invested by
the public employees retirement fund under
IC 5-10.3-5.
The
treasurer of state may contract with investment management
professionals, investment advisors, and legal counsel to assist in the
management of the fund and may pay the state expenses incurred
under those contracts. Money in the fund at the end of the state
fiscal year does not revert to the state general fund.
Sec. 3. Appropriations and distributions from the fund under
this chapter are in addition to and not in place of other
appropriations or distributions made for the same purpose.
SECTION 7.
IC 4-12-9
IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2001]:
Chapter 9. Tobacco Farmers and Rural Community Impact
Fund
Sec. 1. As used in this chapter, fund refers to the tobacco
farmers and rural community impact fund established by section
2 of this chapter.
Sec. 2. (a) The tobacco farmers and rural community impact
fund is established. The fund shall be administered by the
commissioner of agriculture and the department of commerce.
The fund consists of:
(1) amounts, if any, that another statute requires to be
distributed to the fund from the Indiana tobacco master
settlement agreement fund;
(2) appropriations to the fund from other sources;
(3) grants, gifts, and donations intended for deposit in the
fund; and
(4) interest that accrues from money in the fund.
(b) The expenses of administering the fund shall be paid from
money in the fund.
(c) Notwithstanding IC 5-13, the treasurer of state shall invest
the money in the fund not currently needed to meet the obligations
of the fund in the same manner as money is invested by the public
employees retirement fund under
IC 5-10.3-5.
The treasurer of
state may contract with investment management professionals,
investment advisors, and legal counsel to assist in the management
of the fund and may pay the state expenses incurred under those
contracts.
(d) Money in the fund at the end of the state fiscal year does not
revert to the state general fund.
Sec. 3. (a) Subject to subsection (b), money in the fund shall be
used for the following purposes:
(1) To assist farmers who produced tobacco to successfully
transition to alternative, economically viable commodities.
(2) To preserve and sustain Indiana family farms and
farmland.
(3) To develop new agricultural enterprises in areas that were
used for tobacco production, including facilities for research
and development, new market opportunities, educational
programs, and leadership developmental programs.
(4) Assistance to rural communities that suffer a negative
economic impact from the loss of tobacco production,
including assistance to the Indiana Rural Development
Council.
(b) Expenditures from the fund are subject to appropriation by
the general assembly, review by the budget committee, and
approval by the budget agency. In addition, the commissioner of
agriculture shall approve expenditures for projects under
subsection (a)(1) through (a)(3), and the department of commerce
shall approve expenditures for projects under subsection (a)(4).
SECTION 8.
IC 12-10-16
IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
SEPTEMBER 1, 2000]:
Chapter 16. Indiana Prescription Drug Program
Sec. 1. "Fund" refers to the Indiana prescription drug fund
established under
IC 4-12-8.
Sec. 2. "Program" refers to the Indiana prescription drug
program established under section 3 of this chapter.
Sec. 3. The office of the secretary shall administer a program
implementing the recommendations of the prescription drug
advisory committee to provide access to needed pharmaceuticals
to ensure the health and welfare of Indiana's low-income senior
citizens.
Sec. 4. The office of the secretary shall report to the budget
committee on the recommendations made by the prescription drug
advisory committee.
Sec. 5. (a) The office may adopt rules under
IC 4-22-2
to
implement the program.
(b) The office may adopt emergency rules under
IC 4-22-2-37.1
to implement the program on an emergency basis.
Sec. 6. The administrative expenses and benefit costs of the
program shall be paid from the fund.
SECTION 9.
IC 24-3-2-10
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10. (a) In
establishing the cost of cigarettes to the retailer or distributor, the
invoice cost of said cigarettes purchased at a forced, bankrupt, or
close-out sale, or other sale outside of the ordinary channels of trade,
may not be used as a basis for justifying a price lower than one based
upon the replacement cost of the cigarettes to the retailer or distributor,
within thirty (30) days prior to the date of sale, in the quantity last
purchased, through the ordinary channels of trade.
(b) Any cigarettes that are imported or reimported into the
United States for sale or distribution under a trade name, trade
dress, or trademark that is the same as or confusingly similar to a
trade name, trade dress, or trademark used for cigarettes
manufactured in the United States for sale or distribution in the
United States are presumed to be purchased outside the ordinary
channels of trade.
SECTION 10.
IC 24-3-4
IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]:
Chapter 4. Cigarettes Produced for Export; Imported
Cigarettes
Sec. 1. This chapter does not apply to cigarettes sold or intended
to be sold as duty free merchandise by a duty free sales enterprise
that complies with federal requirements, including the
requirements under 19 U.S.C. 1555(b). However, this chapter
applies to cigarettes that are brought back into the United States
that have not been assessed a federal tax or federal duty.
Sec. 2. As used in this chapter, "cigarette" has the meaning set
forth in
IC 24-3-2-2
(a).
Sec. 3. As used in this chapter, "department" refers to the
department of state revenue.
Sec. 4. As used in this chapter, "importer'' means any of the
following:
(1) A person in the United States to whom nontaxpaid tobacco
products, cigarette papers, or cigarette tubes manufactured
in a foreign country, Puerto Rico, the Virgin Islands, or a
possession of the United States are shipped or consigned.
(2) A person who removes cigars or cigarettes for sale or
consumption in the United States from a customs bonded
manufacturing warehouse.
(3) A person who smuggles or unlawfully brings tobacco
products, cigarette papers, or cigarette tubes into the United
States.
Sec. 5. As used in this chapter, "law enforcement officer" has
the meaning set forth in
IC 35-41-1-17.
Sec. 6. As used in this chapter, "manufacturer" means a person
who manufactures a product made from tobacco that is made for
smoking or chewing, including snuff. However, the term does not
include the following:
(1) A person who produces a product made from tobacco that
is made for smoking or chewing, including snuff, solely for the
person's own personal consumption or use.
(2) A proprietor of a customs bonded manufacturing
warehouse with respect to the operation of the warehouse.
Sec. 7. As used in this chapter, "person" has the meaning set
forth in
IC 24-3-2-2
(b).
Sec. 8. As of October 1, 2000, a person may not sell, distribute,
or transport into Indiana any of the following cigarettes:
(1) Cigarettes that have been marked for sale, distribution, or
use outside the United States, including labels stating "For
Export Only", "U.S. Tax-Exempt", and "For Use Outside
U.S.".
(2) Cigarettes that do not comply with the federal Cigarette
Labeling and Advertising Act (15 U.S.C. 1333) or with other
federal requirements regarding health warnings and other
information on cigarette packages manufactured, packaged,
or imported for sale, distribution, or use in the United States.
(3) Cigarettes that do not comply with federal trademark and
copyright laws.
(4) Cigarettes that violate federal requirements on
importation of previously exported tobacco products,
including 26 U.S.C. 5754.
(5) Cigarettes that the person knows or has reason to know
that the manufacturer did not intend to be sold, distributed,
or used in the United States.
(6) Cigarettes that have not had the list of the cigarette's
added ingredients submitted to the Secretary of the
Department of Health and Human Services under 15 U.S.C.
1335a.
(7) Cigarettes that have had the package altered before the
cigarettes are sold or distributed to the consumer that
remove, conceal, or obscure any of the following:
(A) A marking that indicates the cigarettes are intended to
be sold, distributed, or used outside the United States.
(B) A health warning or other information required under
15 U.S.C. 1333.
Sec. 9. A person may not affix a stamp (as defined by
IC 6-7-1-9
)
on a package of cigarettes described in section 8 of this chapter.
Sec. 10. (a) A person who, for the purpose of selling or
distributing the cigarettes in Indiana, imports cigarettes into
Indiana that were manufactured outside the United States, shall
file a monthly report with the department and keep and maintain
the records required under
IC 6-7-1-19
and
IC 6-7-1-19.5.
(b) The report required under subsection (a) must be signed by
the person who imports the cigarettes, under penalties of perjury,
and must contain the following information concerning cigarettes
that the person imported during the preceding month:
(1) A copy of each of the following:
(A) The permit issued under 26 U.S.C. 5713 that allows the
person to import the cigarettes into the United States.
(B) The United States Customs Service form concerning
the cigarettes that contains the internal revenue tax
information required by the federal Bureau of Alcohol,
Tobacco, and Firearms.
(2) A statement that includes the following information:
(A) The brand and brand styles of the cigarettes imported.
(B) The quantity of each brand style of the cigarettes
imported.
(C) The name and address of each person to whom the
cigarettes have been shipped.
(3) A statement signed by an officer of the manufacturer or
importer, under the penalties for perjury, that states whether
the manufacturer is a participant in the escrow fund under
IC 24-3-3-12
and certifies that the manufacturer or importer
has complied with the following:
(A) The federal cigarette package health warning
requirements (15 U.S.C. 1333) and the federal ingredient
reporting requirements (15 U.S.C. 1335a).
(B) The qualified escrow fund for tobacco product
manufacturers requirements under
IC 24-3-3.
Sec. 11. The department may do the following:
(1) Adopt rules under
IC 4-22-2
to implement this chapter.
section 8 of this chapter commits a Class A misdemeanor.
Sec. 16. A person who knowingly or intentionally sells, or
distributes cigarettes that bear Indiana tax stamps affixed in
violation of this chapter commits a Class A misdemeanor.
Sec. 17. A person who:
(1) knowingly sells, distributes, or transports more than
twelve thousand (12,000) cigarettes in violation of section 8 or
9 of this chapter; and
(2) has previously been convicted of an offense under section
8 or 9 of this chapter;
commits a Class D felony.
SECTION 11.
IC 24-5-0.5-3
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) The
following acts or representations as to the subject matter of a consumer
transaction, made either orally or in writing by a supplier, are deceptive
acts:
(1) That such subject of a consumer transaction has sponsorship,
approval, performance, characteristics, accessories, uses, or
benefits it does not have which the supplier knows or should
reasonably know it does not have.
(2) That such subject of a consumer transaction is of a particular
standard, quality, grade, style, or model, if it is not and if the
supplier knows or should reasonably know that it is not.
(3) That such subject of a consumer transaction is new or unused,
if it is not and if the supplier knows or should reasonably know
that it is not.
(4) That such subject of a consumer transaction will be supplied
to the public in greater quantity than the supplier intends or
reasonably expects.
(5) That replacement or repair constituting the subject of a
consumer transaction is needed, if it is not and if the supplier
knows or should reasonably know that it is not.
(6) That a specific price advantage exists as to such subject of a
consumer transaction, if it does not and if the supplier knows or
should reasonably know that it does not.
(7) That the supplier has a sponsorship, approval, or affiliation in
such consumer transaction he does not have, and which the
supplier knows or should reasonably know that he does not have.
(8) That such consumer transaction involves or does not involve
a warranty, a disclaimer of warranties, or other rights, remedies,
or obligations, if the representation is false and if the supplier
knows or should reasonably know that the representation is false.
reasonably know that it is not authorized.
(15) The act of misrepresenting the geographic location of the
supplier by listing a fictitious business name or an assumed
business name (as described in
IC 23-15-1
) in a local telephone
directory if:
(A) the name misrepresents the supplier's geographic location;
(B) the listing fails to identify the locality and state of the
supplier's business;
(C) calls to the local telephone number are routinely forwarded
or otherwise transferred to a supplier's business location that
is outside the calling area covered by the local telephone
directory; and
(D) the supplier's business location is located in a county that
is not contiguous to a county in the calling area covered by the
local telephone directory.
(16) The act of listing a fictitious business name or assumed
business name (as described in
IC 23-15-1
) in a directory
assistance database if:
(A) the name misrepresents the supplier's geographic location;
(B) calls to the local telephone number are routinely forwarded
or otherwise transferred to a supplier's business location that
is outside the local calling area; and
(C) the supplier's business location is located in a county that
is not contiguous to a county in the local calling area.
(17) That the supplier violated
IC 24-3-4
concerning cigarettes
for import or export.
(b) Any representations on or within a product or its packaging or
in advertising or promotional materials which would constitute a
deceptive act shall be the deceptive act both of the supplier who places
such representation thereon or therein, or who authored such materials,
and such other suppliers who shall state orally or in writing that such
representation is true if such other supplier shall know or have reason
to know that such representation was false.
(c) If a supplier shows by a preponderance of the evidence that an
act resulted from a bona fide error notwithstanding the maintenance of
procedures reasonably adopted to avoid the error, such act shall not be
deceptive within the meaning of this chapter.
(d) It shall be a defense to any action brought under this chapter that
the representation constituting an alleged deceptive act was one made
in good faith by the supplier without knowledge of its falsity and in
reliance upon the oral or written representations of the manufacturer,
the person from whom the supplier acquired the product, any testing
organization, or any other person provided that the source thereof is
disclosed to the consumer.
(e) For purposes of subsection (a)(12), a supplier that provides
estimates before performing repair or replacement work for a customer
shall give the customer a written estimate itemizing as closely as
possible the price for labor and parts necessary for the specific job
before commencing the work.
(f) For purposes of subsection (a)(15), a telephone company or other
provider of a telephone directory or directory assistance service or its
officer or agent is immune from liability for publishing the listing of a
fictitious business name or assumed business name of a supplier in its
directory or directory assistance database unless the telephone
company or other provider of a telephone directory or directory
assistance service is the same person as the supplier who has
committed the deceptive act.
SECTION 12. [EFFECTIVE JULY 1, 2000] (a) All money
remaining in the tobacco settlement fund on June 30, 2000, shall be
transferred to the Indiana tobacco master settlement agreement
fund established by
IC 4-12-1-14.3
, as amended by this act, on July
1, 2000.
(b) Notwithstanding P.L.273-1999 or
IC 4-12-1-14.3
, as
amended by this act, the appropriations made by P.L.273-1999,
SECTION 8, for the state fiscal year beginning July 1, 2000, for
CHILDREN'S HEALTH INSURANCE PROGRAM (CHIP)
ASSISTANCE and CHILDREN'S HEALTH INSURANCE
PROGRAM (CHIP) ADMINISTRATION:
(1) are payable from the Indiana tobacco master settlement
agreement fund established by
IC 4-12-1-14.3
, as amended by
this act; and
(2) are not subject to the limitation on expenditures from the
fund under
IC 4-12-1-14.3
(d), as amended by this act.
(c) The following amounts are appropriated from the Indiana
tobacco master settlement agreement fund established by
IC 4-12-1-14.3
, as amended by this act, for the period beginning
July 1, 2000, and ending June 30, 2001:
(1) Thirty-five million dollars ($35,000,000) to be transferred
to the Indiana tobacco use prevention and cessation fund for
tobacco education, prevention, and use control. However, two
million five hundred thousand dollars ($2,500,000) of this
amount must be used to fund minority organizations,
agencies, and businesses to implement minority prevention
and intervention programs.
(2) Twenty million dollars ($20,000,000) to be transferred to
the Indiana prescription drug fund for pharmaceutical
assistance for low income senior citizens.
(3) Fifteen million dollars ($15,000,000) to the state
department of health for total operating expenses for either or
both of the following purposes:
(A) Community health centers.
(B) Primary health care centers for children.
(d) Ten million dollars ($10,000,000) is appropriated from the
Indiana tobacco master settlement agreement fund established by
IC 4-12-1-14.3
, as amended by this act, to the state department of
health to cover capital costs for the period beginning July 1, 2000,
and ending June 30, 2002, for community health centers.
(e) In addition to the money appropriated under
IC 6-7-1-30.5
and under P.L.273-1999, SECTION 8, one million five hundred
thousand dollars ($1,500,000) shall be transferred from the Indiana
tobacco master settlement agreement fund established by
IC 4-12-1-14.3
, as amended by this act, to the local health
maintenance fund established by
IC 16-46-10-1
and is appropriated
for total operating expenses of the local health maintenance fund
beginning July 1, 2000, and ending June 30, 2001. The
appropriation made under this subsection shall be used to make
supplemental grants, in addition to the grants provided under
IC 16-46-10-2
, under the following schedule to each local board of
health whose application for funding is approved by the state
board of health:
COUNTY POPULATION
AMOUNT OF GRANT
over - 499,999
$ 36,000
100,000 - 499,999
24,000
50,000 - 99,999
20,000
under - 50,000
14,000
SECTION 13. [EFFECTIVE JULY 1, 2000] (a) The Indiana
University School of Medicine shall submit proposed criteria and
cost estimates to the Indiana health care trust fund advisory board
concerning the establishment and funding of a research project to
determine the causes and tendencies of nicotine addiction and
withdrawal from nicotine addiction.
(b) The Indiana minority health coalition and Martin University
shall submit proposed criteria and cost estimates to the Indiana
health care trust fund advisory board concerning the establishment
and funding of a minority epidemiology resource center.
(c) This SECTION expires July 1, 2003.
expenses actually incurred in connection with the member's duties.
The expenses of the committee shall be paid from the Indiana
pharmaceutical assistance fund created by
IC 4-12-8
, as added by
this act. The office of the secretary of family and social services
shall provide staff for the committee. The committee is a public
agency for purposes of
IC 5-14-1.5
and
IC 5-14-3.
The advisory
council is a governing body for purposes of
IC 5-14-1.5.
(d) Not later than September 1, 2000, the board shall make
program design recommendations to the governor and the family
and social services administration concerning the following:
(1) Eligibility criteria, including the desirability of
incorporating an income factor based on the federal poverty
level.
(2) Benefit structure.
(3) Cost-sharing requirements, including whether the
program should include a requirement for copayments or
premium payments.
(4) Marketing and outreach strategies.
(5) Administrative structure and delivery systems.
(6) Evaluation.
(e) The recommendations shall address the following:
(1) Cost-effectiveness of program design.
(2) Coordination with existing pharmaceutical assistance
programs.
(3) Strategies to minimize crowd-out of private insurance.
(4) Reasonable balance between maximum eligibility levels
and maximum benefit levels.
(5) Feasibility of a health care subsidy program where the
amount of the subsidy is based on income.
(6) Advisability of entering into contracts with health
insurance companies to administer the program.
(f) The committee may not recommend the use of funds from the
Indiana pharmaceutical assistance fund for a state prescription
drug benefit for low-income senior citizens if there is a federal
statute or program providing a similar prescription drug benefit
for the benefit of low-income senior citizens.
(g) This SECTION expires December 31, 2001.
SECTION 16. An emergency is declared for this act.