Sec 36-2901.02. Arizona tobacco litigation settlement fund; nonlapsing

A. The Arizona tobacco litigation settlement fund is established consisting of all monies that this state receives pursuant to the tobacco litigation master settlement agreement entered into on November 23, 1998 and interest earned on these monies. The director of the Arizona health care cost containment system administration shall administer the fund. The state treasurer shall invest monies in the fund pursuant to section 35-313 and shall credit monies earned from these investments to the fund.

B. The director shall use fund monies as follows and in the following order:

1. Withdraw an amount necessary in each fiscal year to fully implement and fully fund the programs and services required as a result of the expanded definition of an eligible person pursuant to section 36-2901.01.

2. Withdraw an amount necessary in each fiscal year to fully implement and fully fund each of the programs listed in section 5-522, subsection E, as amended pursuant to the initiative measure approved by the voters on November 5, 1996, at funding levels that when annually adjusted for inflation, as provided in said initiative, are equal to or greater than those provided for in that election. The joint legislative budget committee shall compute these adjusted levels and provide this information to the director of the Arizona health care cost containment system administration. The director shall transfer these monies to the agencies responsible for administering each of the programs. The legislature may modify the funding provided pursuant to this subsection by simple majority vote not less than ten years after the effective date of this section.

C. The director may use any remaining fund monies to fund expanded coverage in the Arizona health care cost containment system including the premium sharing program and as approved by the voters or by the legislature by simple majority vote.

D. The legislature may appropriate any monies that remain in the fund after the programs prescribed in subsection B, paragraphs 1 and 2 of this section are fully funded and implemented only for programs that benefit the health of the residents of this state.

E. Monies in the fund:

1. Shall be used to supplement and not supplant existing and future appropriations to the Arizona health care cost containment system administration for existing and future programs.

2. Do not revert to the state general fund.

3. Are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

4. Are continuously appropriated.

(Caution: 1998 Prop 105 Applies)