2001 SESSION

01-2319

09/10

HOUSE BILL 1376-FN

COMMITTEE: Finance

ANALYSIS

This bill establishes a new distribution formula for tobacco settlement funds beginning in fiscal year 2002. Tobacco settlement funds shall be deposited in the tobacco use prevention fund and the health care fund. Tobacco settlement funds in the health care fund are designated for increased access to health care for low-income and underserved populations.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

01-2319

09/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand One

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Distribution of Tobacco Settlement Funds. Amend 2000, 212:1, II to read as follows:

II. Beginning in fiscal year [2001] 2002 and in each year thereafter:

(a) The first [$3,000,000] $10,800,000 to the tobacco use prevention fund, established in RSA 126-K:15.

(b) [The next $40,000,000 to the education trust fund, established in RSA 198:39.

(c) Any amount over $43,000,000 shall be deposited as unrestricted revenue to the general fund] Any additional annual amount shall be deposited in the health care fund, established under RSA 167:70, to be used to increase health care access for low-income and underserved populations.

2 Tobacco Use Prevention Fund. Amend RSA 126-K:15 to read as follows:

126-K:15 Tobacco Use Prevention Fund. There is hereby established in the office of the state treasurer a fund to be known as the tobacco use prevention fund. Of tobacco settlement funds received by the state of New Hampshire, [$3,000,000] $10,800,000 annually, commencing with fiscal year [2001] 2002, shall be deposited in the tobacco use prevention fund. Moneys in this fund shall be nonlapsing and continually appropriated, beginning with fiscal year 2001, for tobacco use prevention and cessation programs, which shall include but not be limited to:

I. Tobacco use prevention community programs and grants.

II. Tobacco use prevention school programs and grants.

[III. Tobacco use prevention state-wide programs and grants.

IV. Tobacco use cessation programs.

V. Tobacco use prevention and cessation counter marketing.

VI. Evaluation of tobacco control initiatives.

VII. Administration and enforcement. ]

3 Health Care Fund. Amend RSA 167:74 to read as follows:

167:74 Fund Limitations.

I. Health care initiatives as established in RSA 167:71, I shall be available for a limited time period which shall not exceed 4 years.

II. The health care fund shall fund:

(a) Coverage for those groups established in RSA 167:68, I(a), (b), (c), (d), and (e) for those recipients who have incomes between 170 percent and 185 percent of the federal poverty level.

(b) [Primary preventive health services under RSA 126-A:18.

(c)] Health care grants, which are intended to support community-based health care initiatives, as established in RSA 167:71, I, necessary to promote access, improve the quality of health care services, evaluate service delivery and cost models, or improve the purchasing and cost effective utilization of health care services.

III. At the end of the fiscal biennium, all principal assets in the fund in excess of $100,000,000 shall be transferred to the revenue stabilization reserve account. This paragraph shall not apply to tobacco settlement funds credited to the health care fund.

IV. Money credited to this fund from the tobacco settlement, pursuant to 2000, 212, II shall be expended for increased access to health care for low-income and underserved populations.

4 Repeal. The following are repealed:

I. RSA 126-A:18, relative to primary prevention health services.

II. RSA 198:39, I(i), relative to the deposit of tobacco settlement funds in the education trust fund.

5 Effective Date. This act shall take effect July 1, 2002.

LBAO

01-2319

9/19/01

HB 1376-FN - FISCAL NOTE

FISCAL IMPACT: