Citations Affected: IC 4-12.
Synopsis: Tobacco settlement funds. Makes permanent appropriations
from the tobacco master settlement agreement fund.
Effective: July 1, 2003.
January 15, 2003, read first time and referred to Committee on Public Health.
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration and to make an appropriation.
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 determined under
STEP THREE of the following formula:
STEP ONE: Determine the amount of money received or to be
received by the state under the master settlement agreement
during that state fiscal year.
STEP TWO: Multiply the STEP ONE amount by sixty percent
(60%).
STEP THREE: Add to the STEP TWO product any amounts that
were available for expenditure, transfer, or distribution under this
subsection or subsection (d) during preceding state fiscal years
but that were not expended, transferred, or distributed.
(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. Interest
that is appropriated from the fund by the general assembly may
not be considered in determining the maximum amount of
expenditures, transfers, or distributions under subsection (e).
(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 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 investment 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, the budget agency shall make the full transfer
to the regional health facilities construction account and then reduce all
remaining expenditures, transfers, and distributions affected by the
shortfall.
chapter to provide for the appropriations in
IC 4-12-7-4
and
subsections (a) and (b).
(d) Notwithstanding section 14.3(e) of this chapter, if the fund
contains insufficient money to make the appropriations made in
IC 4-12-7-4
and subsections (a) and (b) after the adjustment in
subsection (c) is made, the following percentages apply to the
appropriations:
(1) One hundred percent (100%) of the appropriations made
in
IC 4-12-7-4
and subsection (a).
(2) After subtracting the appropriation made in subdivision
(1) from the amount available in subsection (c):
(A) forty-eight percent (48%) of the amount determined to
be available for the office of Medicaid policy and planning
within the office of the secretary of family and social
services for the children's health insurance program;
(B) two percent (2%) of the amount determined to be
available for the state department of health for local health
maintenance programs;
(C) twenty-one and four tenths percent (21.4%) of the
amount determined to be available for the state
department of health for community health centers; and
(D) twenty-eight and six tenths percent (28.6%) of the
amount determined to be available for the Indiana
prescription drug account established by
IC 4-12-8-2.
the account at the end of a state fiscal year does not revert to the state
general fund but remains available for expenditure.
(d) (c) Money in the account may be used for:
(1) the construction, equipping, renovation, demolition,
refurbishing, or alteration of existing or new state hospitals,
regional health centers, or other health facilities; or
(2) lease rentals to the state office building commission or other
public or private providers of such facilities.
(e) (d) Money in the account shall be used to pay any outstanding
lease rentals before making any other payments from the account.
(f) (e) Money in the account is annually appropriated for the
purposes described in this chapter.