PETITION OF:

Rachel Kaprielian

Byron Rushing

Timothy J. Toomey, Jr.

Denis E. Guyer

Kevin G. Honan

Bradford Hill

Anthony J. Verga

Barbara A. L'Italien

Paul J. Donato

John W. Scibak

Robert L. Rice, Jr.

Frank M. Hynes

Robert K. Coughlin

Alice K. Wolf

Peter V. Kocot

Robert M. Koczera

Matthew C. Patrick

John P. Fresolo

Frank I. Smizik

Lewis G. Evangelidis

Patricia A. Haddad

Martin J. Walsh

Michael F. Rush

William Lantigua

Christopher J. Donelan

Stephen Kulik

Cory Atkins

William Smitty Pignatelli

Todd M. Smola

Stephen M. Brewer

John D. Keenan

Michael E. Festa

Anne M. Gobi

Christopher G. Fallon

William C. Galvin

Louis L. Kafka

Carl M. Sciortino, Jr.

Christine E. Canavan

William N. Brownsberger

J. James Marzilli, Jr.

Richard J. Ross

Elizabeth A. Malia

Peter J. Koutoujian

Walter F. Timilty

Denise Provost

James E. Vallee

Theodore C. Speliotis

Jennifer M. Callahan

Jeffrey Sanchez

Thomas P. Conroy

SECTION 1. Chapter 29 of the General Laws, as appearing in the 2000 Official Edition is hereby amended by adding the following section:-

Section 2GG. There shall be established and set up on the books of the commonwealth a separate fund to be known as the Health Protection Fund. There shall be credited to said fund all amounts collected pursuant to section seven C of chapter sixty-four C, together with any penalties, forfeitures, interest, costs of suits and fines collected in connection therewith, less all amounts refunded or abated in connection therewith, all as determined by the commissioner of revenue according to his best information and belief; any appropriation, grant, gift, or other contribution explicitly made to said fund; and any income derived from the investment of amounts credited to said fund.

Amounts credited to said fund shall be expended, subject to appropriation, to supplement existing levels of funding for the following purposes:

(a) for comprehensive school health education programs, to be administered by the department of education; provided, however, that such programs shall incorporate information relating to the hazards of tobacco use and such programs shall be approved by the department of public health;

(b) for workplace-based and community smoking prevention and smoking cessation programs, for tobacco-related public service counter marketing and for tobacco education programs, to be administered by the department of public health;

(c) for the support of community health centers and their programs of prenatal and maternal care, under the supervision of said department of public health; provided, however, that such prenatal and maternal care programs incorporate smoking cessation assistance and guidance regarding the harmful effects of smoking on fetal development; and

(d) for ongoing activities, by said department of public health, relating to the monitoring of morbidity and mortality from cancer and other tobacco-related illnesses in the commonwealth.

In conjunction with the preparation of the commonwealth’s comprehensive annual financial report, the comptroller shall prepare and issue an annual report detailing the revenues and expenditures of said fund.

SECTION 2. Said chapter 29, as so appearing, is hereby further amended by adding the following section:-

Section 2XX. (a) There shall be established and set up on the books of the commonwealth a separate fund to be known as the Tobacco Settlement Fund. There shall be credited to said fund: (1) starting in fiscal year 2007 and thereafter, 50 per cent of all payments received by the commonwealth each year pursuant to the master settlement agreement in the action known as Commonwealth of Massachusetts v. Phillip Morris, Inc. et. Al., Middlesex Superior Court, No. 95-7378, 50 percent of any monies generated by any other claim or action undertaken by the attorney general against a manufacturer of cigarettes to recover the amount of medical assistance provided pursuant to chapter 118E or any other claim or action taken by the attorney general against a manufacturer of cigarettes; (3) for fiscal year 2007 and thereafter 30 per cent of all payments received by the commonwealth each year pursuant to the master settlement agreement in the action known as Commonwealth of Massachusetts v. Phillip Morris, Inc. et. Al., Middlesex Superior Court, No. 95-7378, 30 percent of the earnings generated each year from the Health Care Security Trust as certified by the comptroller pursuant to paragraph (f) of section 3 of said chapter 29D, and 30 per cent of any monies generated by any other claim or action undertaken by the attorney general against a manufacturer of cigarettes to recover the amount of medical assistance provided pursuant to chapter 118E or any other claim or action taken by the attorney general against a manufacturer of cigarettes; (4) any federal reimbursement received pursuant to Title XIX and Title XXI of the Social Security Act, or a successor statute, as a result of the operation of programs funded by the expenditures from said fund; (5) any fees, fines, premiums, co-payments, assessments or other revenues collected as a result of the operation of programs funded by expenditures from said fund; (6) any appropriation, grant, gift, or other contribution explicitly made to said fund; and any income derived from the investment of amounts credited to said fund.

(b) Amounts credited to said fund shall be expended, subject to appropriations, to supplement existing levels of funding for the purpose of funding health related services and programs including, but not limited to, services and programs intended to control or reduce the use of tobacco in the commonwealth.

(c) In conjunction with the preparation of the commonwealth’s comprehensive annual financial report, the comptroller shall prepare and issue an annual report detailing the revenues and expenditures of said fund.

SECTION 3. Section 3 of Chapter 29D of the General Laws, as so appearing, is hereby amended by striking out the words “General Fund” and inserting in place thereof, in each instance, the following words:-

Tobacco Settlement Fund.

SECTION 4. Said section 3 of chapter 29D of the General Laws, as so appearing, is hereby further amended in subsection (b) by adding at the end thereof the following:-

, which shall include, but not be limited to smoking prevention and tobacco control education programs, youth smoking prevention and tobacco control programs, related enforcement activities of local boards of health; tobacco tax enforcement, coordinated tobacco cessation resources, the Quit Line or its equivalent and Quit Works or its equivalent; and regional tobacco reduction partnerships, and provided further, for fiscal year 2007 and thereafter, such funding for tobacco control purposes shall be not less than the amount recommended by the Centers for Disease Control and Prevention for the then current tobacco control and prevention state funding.

SECTION 5. Said section 3 of said chapter 29D, as so appearing, is hereby further amended by striking out paragraph (f) and inserting in place thereof the following paragraph:-

(f) Not later than October 31 of each year, the comptroller shall certify to the trustees, the fiscal affairs division, the house and senate committees on ways and means, the joint committee on health care finance and the advisory committee on health care and tobacco control the balance in the Health Care Security Trust Fund and the total return generated by the principal of said trust fund during the prior 12 month period ending on June 30. For fiscal years 2007 and thereafter, the comptroller shall transfer 30 percent of said return, as so certified by the comptroller in the previous October, from the Health Care Security Trust to the Tobacco Settlement Fund, which shall be available for expenditure.

SECTION 6. Section 4 of said chapter 29D, as so appearing, is hereby amended by striking out the words “General Fund” and inserting in place thereof the following words:-

Tobacco Settlement Fund

SECTION 7. Section 5 of said chapter 29D, as so appearing , is hereby amended by striking out subsection (h) and inserting in place thereof the following subsection:-

(g) Beginning on the first Wednesday of October , 2007, and every 2 years thereafter, said commission shall conduct a review to evaluate: (1) the present and future health needs of the citizens of the commonwealth; (2) the financial stability of the trust in light of the return on investment and any adjustment factors or other factors affecting the future stream of payments from the tobacco settlement, based upon the recommendations by the board of trustees of said trust; (3) whether, and to what extent, the present health needs of the commonwealth, when balanced against future needs, warrant recommending a change in the allocation of monies between the trust and the Tobacco Settlement Fund. After such review, the commission shall prepare a report with its recommendations and shall file said report with the office of the governor, the fiscal affairs division, the house and senate committees on ways and means, the joint committee on health care finance and with the clerk of the house of representatives and the clerk of the senate.

SECTION 7. Section 5 of said chapter 29D, as so appearing , is hereby amended by striking out subsection (b) and inserting in place thereof the following subsection:-

Said committee shall consist of 20 members: one of whom shall be the secretary of health and human services, or his designee, who shall be a nonvoting member; on of whom shall be the commissioner of public health, or his designee, who shall be a nonvoting member; one of whom shall be the director of the office of Medicaid, or his designee, who shall be a nonvoting member; and 13 of whom shall be appointed by the governor: one member representing the Massachusetts Public Health Association; one member representing Tobacco Free Mass; one member representing the American Cancer Society, New England Division; one member representing the American Heart Association; one member representing the Asthma and Allergy Foundation of America, New England chapter; one member representing the American Lung Association; one member representing the Massachusetts Medical Society; one member representing the Massachusetts Municipal Association; one member representing the Massachusetts Association of Health Boards; one member representing the Massachusetts Association of Health Plans; one member representing the Massachusetts League of Community Health Centers; one member representing the Boston Public Health Commission; one member representing the Springfield Health Department; and one member representing the Worcester Health Department; and two members appointed by the speaker of the house, one of whom shall be a representative of a public or private institution with expertise in tobacco cessation and control and one of whom shall be a representative from a community disproportionately affected by tobacco health disparities; and two members to be appointed by the senate president, one of whom shall be a representative of a public or private institution with expertise in tobacco cessation and control and one of whom shall be a representative from a community disproportionately affected by tobacco health disparities. In the event that an organization, association or other entity or successor organization, association or other entity named herein ceases to exist, the governor shall appoint a comparable replacement appointee. All appointments shall be for term of three years. Once established, the committee shall elect a chairperson and establish by-laws which will govern all aspects of its operation.

Said committee shall monitor the performance and effectiveness of tobacco control programs and services in the Commonwealth and shall make recommendations for the expansion or contraction of existing services and/or the provision of new services. Said recommendations shall be based, to the extent feasible and appropriate, upon an evaluation of scientific data and research, current tobacco use and trends data, outcomes from current programs and services, and thee Best Practices Guidelines of the Centers for Disease Control and Prevention for comprehensive tobacco control programs. Said committee shall meet not less than quarterly and shall file an annual report at the end of each fiscal year with the Office of the Governor, the Clerk of the House of Representatives and the Clerk of the Senate. Said report shall include, but not be limited to, an analysis of revenues received that fiscal year from the Tobacco Settlement Fund and tobacco taxes, the percent of such funds allocated to tobacco control programs, trends in youth and adult smoking rates and tobacco-related disease, and recommendations for implementing and improving programs and services.