Tobacco recoupment language with IDEA

from: Cynthia A. Rice
to: Bruce N. Reed, Elena Kagan, Laura
cc: J. Eric, Jonathan H., Tanya E. Martin
      Here's the Chafee language with tobacco prevention at 20% and IDEA at 37%
     (see bottom of page 2) .

     with state tobacco settlement funds at about $8 billion a year, this would
     add $3 billion a year in federal funds to IDEA. According to figures
     Tanya got from OMB, an additional $11 billion would need to be added to
     reach a federal share of 40 percent.

     Current spending: federal govt pays $4.3 billion or 11% of about $39
     billion in cost.

     with this amendment: federal govt pays $7.3 billion or 19% of about $39
     billion in cost.       Unable to convert ARMS_EXT: [ATTACH.D13]MAIL44146767S.036 to ASCII,
      The following is a HEX DUMP:

     FF5750431B050000010A020100000002050000008A27000000020000B37D7995DCE4AB1C90A959
     F85DCAF10DCE48C43D439F5259E4719C9BAC3496E9CE39920B4EAB1DC4B1467252ACACAEA27D24
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     B5CC5405AA43FE7E2913C48EB50C19FD67FEDE97AF043469C81CBOCB5C84F8E570DF958D9876DB
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     87EEEDE7C99D8C45729A18FOB3FCDE422470A3A3CD9868BB017FOFAC19F97310B8CBDDF4B26147




                                              Automated Records Management System
                                                      Hex-DiJmp Conversion
    Modified version of Chafee recoupment bill with funds for IDEA


                                                      A BILL

       To amend title XIX of the Social Security Act to permit the Secretary of Health and Human
     Services to waive recoupment under the Medicaid program of certain funds received by a State
     from manufacturers of tobacco products if a State uses a portion of such funds for tobacco use
                                  prevention and reduction programs.

      Be it enacted by the Senate and House of Representatives of the United States of America in
                                         Congress assembled,

            Section 1. Short Title.
                     This Act may be cited as the "___ Act of 1999".


            Section 2. Findings.
                     Congress makes the following findings:
                             (1) Tobacco products are the foremost preventable health problem facing
            America today. More than 400,000 individuals die each year as a result of tobacco
            induced illnesses and conditions.
                             (2) Virtually all new users of tobacco products are under legal age. Every
            day, 3,000 young people become regular smokers. Of these children, 1,000 will die
            prematurely from a tobacco-related disease.
                             (3) Tobacco products are inherently dangerous and cause cancer, heart
            disease, and other serious adverse health effects.
                             (4) Medicaid is a joint Federal-State partnership program designed to
            provide health care to citizens with low-income.
                             (5) On average, the Federal Government pays 57 percent of the costs of
            the Medicaid program, and no State must pay for more than 50 percent of the cost of the
            program in that State.
                             (6) The comprehensive settlement of November 1998 be~ween
            manufacturers of tobacco products (as defined in section 5702(d) of the Internal Revenue
            Code of 1986) and States, and the individual State settlements reached with such


                                                          -1-

                                          ;\utomated Records Management System
                                                   Hex-Dump COil version

            manufacturers, include claims arising out of the Medicaid program.
                           (7) It is in the interest of the public health to target a portion of the funds
            received by States as a result of such settlements towards combating the problem of
            youth smoking.


     Sec. 3 WAIVER OF RECOUPMENT UNDER THE MEDICAID PROGRAM OF
     TOBACCO-RELATED FUNDS


            (A) IN GENERAL-Section 1903 (d)(3) of the Social Security Act (42 U.S.C. 1396b
     (d)(3)) is amended-
                   (1) by inserting "(A)" before "The"; and
                   (2) by adding at the end of the following:
            "(B) The Secretary shall waive the applicability of subparagraph (A) and paragraph
            (2)(B) with respect to amounts recovered or paid to a State as part of the
            comprehensive settlement of November 1998 between manufacturers of tobacco products
            (as defined in section S702(d) of the Internal Revenue Code of 1986) and States, or as
            part of any individual State settlement or judgement reached in litigation initiated or
            pursued by a State against one or more such manufacturers, if, with respect to a fiscal
            year, the Governor or Chief Executive Officer of the State-
                   "(I) certifies that at least 20 percent of such amounts received during the fiscal
            year will be expended on activities to reduce tobacco use described in subparagraph (C);
            and
                           "(AA) includes as part of such certification a written description of how
            such amounts will be expended; and
                           "(BB) supplements and does not supplant the level of funds expended by
            the State in 1998 for similar activities in the State, as defined in subparagraph (E);
                   and
                   "(ii) certifies that at least 37 percent of such amounts received during the fiscal
            year will be expended on activities required by the Individuals with Disabilities Act (20


                                                      -2-
                                                   Hex-Dump COilersion 

       U.S.C. 1411 et. seq.).
       "(C) For purposes of subparagraph (B)(IJ, activities to reduce tobacco use consist of
       tobacco use prevention and reduction programs, including-
               "(I) counter-marketing and counter-advertising;
               "(ii) school and community-based education and prevention programs;
               "(iii) smoking cessation programs (including training for health care professionals
       and providers on how to conduct such programs);
               "(iv) enforcement oflaws relating to tobacco products; and
               "(v) evaluation and surveillance of the effectiveness of such programs and
       activities.
       "(D) Nothing in subparagraph (B) shall be construed as limiting the authority of the
       Secretary under this title to-
               "(I) require reports and conduct investigations to ensure that a State is complying
       with a certification submitted under that subparagraph and clause (iii) of that
       subparagraph; or
               '(ii) limit or deny Federal payments under this section to a State that has failed to
       so comply.
       "(E) Funds described in subparagraph (B)(i) shall be used to supplement not supplant
other Federal, State, or local funds provided for any of the purposes described in subparagraph
(C) and shall not be used as State matching funds. To receive funds under subsection (B) (i)
States must demonstrate a maintenance of effort. This maintenance of effort is defined as the
sum of--
       (i) an amount equal to 100 percent of Federal fiscal year 1998 State spending on the
       programs under subparagraph (C) and
       (ii) an amount equal to the product of the amount described in paragraph (1) and
               (AA) for 1999, the lower of -
                       (I) general inflation as measured by the consumer price index for the
                       previous year; or
                       (II) the annual change in the Federal appropriation for the program in the


                                                -3-
                                                        Hex-Oump ConvomiDn .
               previous fiscal year; and
       (BB) for subsequent fiscal years, the lower of -
               (I) the cumulative general inflation as measured by the consumer price
               index for the period between 1998 and the previous year; or
               (ii) the cumulative change in the Federal appropriation for the program for
               the period between fiscal year 1998 and the previous fiscal year.
The maintenance-of-effort requirement in paragraph (i), and the adjustments in paragraph
(ii), apply to each program identified in paragraph (i) on an individual basis."




                                           -4-
    
billion in cost. ==================== ATTACHMENT 1 ==================== ATT CREATION TIME/DATE: 0 00:00:00.00 TEXT: Unable to convert ARMS_EXT: [ATTACH.D13]MAIL44146767S.036 to ASCII, The following is a HEX DUMP: FF5750431B050000010A020100000002050000008A27000000020000B37D7995DCE4AB1C90A959 F85DCAF10DCE48C43D439F5259E4719C9BAC3496E9CE39920B4EAB1DC4B1467252ACACAEA27D24 7E86F3D71467865D4FCC7AOC9BOEC4890612C534F9324E5B7AAC36B70B4E36B3520EFC18AB8B39 B5CC5405AA43FE7E2913C48EB50C19FD67FEDE97AF043469C81CBOCB5C84F8E570DF958D9876DB OF30B6FOEA410EDOBD8F2445049FD69AF8A5896E65893A159520942BOA92A8246777809CD2BE9C 87EEEDE7C99D8C45729A18FOB3FCDE422470A3A3CD9868BB017FOFAC19F97310B8CBDDF4B26147 Automated Records Management System Hex-DiJmp Conversion Modified version of Chafee recoupment bill with funds for IDEA A BILL To amend title XIX of the Social Security Act to permit the Secretary of Health and Human Services to waive recoupment under the Medicaid program of certain funds received by a State from manufacturers of tobacco products if a State uses a portion of such funds for tobacco use prevention and reduction programs. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, Section 1. Short Title. This Act may be cited as the "___ Act of 1999". Section 2. Findings. Congress makes the following findings: (1) Tobacco products are the foremost preventable health problem facing America today. More than 400,000 individuals die each year as a result of tobacco induced illnesses and conditions. (2) Virtually all new users of tobacco products are under legal age. Every day, 3,000 young people become regular smokers. Of these children, 1,000 will die prematurely from a tobacco-related disease. (3) Tobacco products are inherently dangerous and cause cancer, heart disease, and other serious adverse health effects. (4) Medicaid is a joint Federal-State partnership program designed to provide health care to citizens with low-income. (5) On average, the Federal Government pays 57 percent of the costs of the Medicaid program, and no State must pay for more than 50 percent of the cost of the program in that State. (6) The comprehensive settlement of November 1998 be~ween manufacturers of tobacco products (as defined in section 5702(d) of the Internal Revenue Code of 1986) and States, and the individual State settlements reached with such -1- ;\utomated Records Management System Hex-Dump COil version manufacturers, include claims arising out of the Medicaid program. (7) It is in the interest of the public health to target a portion of the funds received by States as a result of such settlements towards combating the problem of youth smoking. Sec. 3 WAIVER OF RECOUPMENT UNDER THE MEDICAID PROGRAM OF TOBACCO-RELATED FUNDS (A) IN GENERAL-Section 1903 (d)(3) of the Social Security Act (42 U.S.C. 1396b (d)(3)) is amended- (1) by inserting "(A)" before "The"; and (2) by adding at the end of the following: "(B) The Secretary shall waive the applicability of subparagraph (A) and paragraph (2)(B) with respect to amounts recovered or paid to a State as part of the comprehensive settlement of November 1998 between manufacturers of tobacco products (as defined in section S702(d) of the Internal Revenue Code of 1986) and States, or as part of any individual State settlement or judgement reached in litigation initiated or pursued by a State against one or more such manufacturers, if, with respect to a fiscal year, the Governor or Chief Executive Officer of the State- "(I) certifies that at least 20 percent of such amounts received during the fiscal year will be expended on activities to reduce tobacco use described in subparagraph (C); and "(AA) includes as part of such certification a written description of how such amounts will be expended; and "(BB) supplements and does not supplant the level of funds expended by the State in 1998 for similar activities in the State, as defined in subparagraph (E); and "(ii) certifies that at least 37 percent of such amounts received during the fiscal year will be expended on activities required by the Individuals with Disabilities Act (20 -2- Hex-Dump COilersion U.S.C. 1411 et. seq.). "(C) For purposes of subparagraph (B)(IJ, activities to reduce tobacco use consist of tobacco use prevention and reduction programs, including- "(I) counter-marketing and counter-advertising; "(ii) school and community-based education and prevention programs; "(iii) smoking cessation programs (including training for health care professionals and providers on how to conduct such programs); "(iv) enforcement oflaws relating to tobacco products; and "(v) evaluation and surveillance of the effectiveness of such programs and activities. "(D) Nothing in subparagraph (B) shall be construed as limiting the authority of the Secretary under this title to- "(I) require reports and conduct investigations to ensure that a State is complying with a certification submitted under that subparagraph and clause (iii) of that subparagraph; or '(ii) limit or deny Federal payments under this section to a State that has failed to so comply. "(E) Funds described in subparagraph (B)(i) shall be used to supplement not supplant other Federal, State, or local funds provided for any of the purposes described in subparagraph (C) and shall not be used as State matching funds. To receive funds under subsection (B) (i) States must demonstrate a maintenance of effort. This maintenance of effort is defined as the sum of-- (i) an amount equal to 100 percent of Federal fiscal year 1998 State spending on the programs under subparagraph (C) and (ii) an amount equal to the product of the amount described in paragraph (1) and (AA) for 1999, the lower of - (I) general inflation as measured by the consumer price index for the previous year; or (II) the annual change in the Federal appropriation for the program in the -3- Hex-Oump ConvomiDn . previous fiscal year; and (BB) for subsequent fiscal years, the lower of - (I) the cumulative general inflation as measured by the consumer price index for the period between 1998 and the previous year; or (ii) the cumulative change in the Federal appropriation for the program for the period between fiscal year 1998 and the previous fiscal year. The maintenance-of-effort requirement in paragraph (i), and the adjustments in paragraph (ii), apply to each program identified in paragraph (i) on an individual basis." -4-

Tobacco recoupment language with IDEA

from: Cynthia A. Rice
to: Bruce, Elena Kagan, Laura
cc: J. Eric, Jonathan H., Tanya E. Martin
      Here's the Chafee language with tobacco prevention at 20% and IDEA at 37%
(see bottom of page 2).

With state tobacco settlement funds at about'$B billion a year, this would
add $3 billion a year in federal funds to IDEA. According to figures
Tanya got from OMB, an additional $11 billion would need to be added to
reach a federal share of 40 percent.

Current spending: federal govt pays $4.3 billion or 11% of about $39
billion in cost.

With this amendment: federal govt pays $7.3 billion or 19% of about $39
billion in cost.  Unable to convert ARMS_EXT: [ATTACH.D13]MAIL44146767S.036 to ASCII,
 The following is a HEX DUMP:

FF5750431B050000010A02010000000205000000BA270000000200OOB37D7995DCE4AB1C90A959
FB5DCAF10DCE4BC43D439F5259E4719C9BAC3496E9CE39920B4EAB1DC4B1467252ACACAEA27D24
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3BA2520BAF31712C133F24FC7B5FB85FD4590AC7BC06B2A0273688CA6A7C0906204BDC1EB2DDEO
OBB2944FB705AODF6FDA74B906C756257B1B9F32EA4DCB70C2D92C733AC20259942F7B1B6B787C
4B399FBF6283BB79C5743AAB3CE133B111AE5B174A9AB1C85E2D98FAF258C6C1BF4BC9DOF458B2
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C9EIF0922A02000BOOOOOOOOOOOOOOOOOOOOOOOB23010000000BOl00009A020000005505000000
                                Hex-Dump Conversion

Modified version ofChafee recoupment bill with funds for IDEA


                                                 A BILL

  To amend title XIX of the Social Security Act to pennit the Secretary of Health and Human
 Services to waive recoupment under the Medicaid program of certain funds received by a State
 from manufacturers of tobacco products if a State uses a portion of such funds for tobacco use
                             prevention and reduction programs.

  Be it enacted by the Senate and House of Representatives of the United States of America in
                                     Congress assembled,

        Section 1. Short Title.
                This Act may be cited as the " _ _ _ Act of 1999".


        Section 2. Findings.
                Congress makes the following findings:
                         (1) Tobacco products are the foremost preventable health problem facing
        America today. More than 400,000 individuals die each year as a result of tobacco
        induced illnesses and conditions.
                         (2) Virtually all new users of tobacco products are under legal age. Every
        day, 3,000 young people become regular smokers. Of these children, 1,000 will die
        prematurely from a tobacco-related disease.
                         (3) Tobacco products are inherently dangerous and cause cancer, heart
        disease, and other serious adverse health effects.
                         (4) Medicaid is a joint Federal-State partnership program designed to
        provide health care to citizens with low-income.
                         (5) On average, the Federal Government pays 57 percent of the costs of
        the Medicaid program, and no State must pay for more than 50 percent of the cost of the
        program in that State.
                         (6) The comprehensive settlement of November 1998 between
        manufacturers of tobacco products (as defined in section 5702(d) of the Internal Revenue
        Code of 1986) and States, and the individual State settlements reached with such


                                                     -1-
                             Hex-Dump Conversion

       manufacturers, include claims arising out of the Medicaid program.
                      (7) It is in the interest of the public health to target a portion of the funds
       received by States as a result of such settlements towards combating the problem of
       youth smoking.


Sec. 3 WAIVER OF RECOUPMENT UNDER THE MEDICAID PROGRAM OF
TOBACCO-RELATED FUNDS


       (A) IN GENERAL-Section 1903 (d)(3) of the Social Security Act (42 U.S.C. 1396b
(d)(3)) is amended-
               (1) by inserting "(A)" before "The"; and
               (2) by adding at the end of the following:
       "(B) The Secretary shall waive the applicability of subparagraph (A) and paragraph
       (2)(B) with respect to amounts recovered or paid to a State as part of the
       comprehensive settlement of November 1998 between manufacturers of tobacco products
       (as defined in section S702(d) of the Internal Revenue Code of 1986) and States, or as
       part of any individual State settlement or judgement reached in litigation initiated or
       pursued by a State against one or more such manufacturers, if, with respect to a fiscal
       year, the Governor or Chief Executive Officer of the State-
              "(I) certifies that at least 20 percent of such amounts received during the fiscal
       year will be expended on activities to reduce tobacco use described in subparagraph (C);
       and
                      "(AA) includes as part of such certification a written description of how
       such amounts will be expended; and
                      "(BB) supplements and does not supplant the level of funds expended by
       the State in 1998 for similar activities in the State, as defined in subparagraph (E);
              and
              "(ii) certifies that at least 37 percent of such amounts received during the fiscal
       year will be expended on activities required by the Individuals with Disabilities Act (20


                                                -2-
                                U@.(-~~~



       U.S.C. 1411 et. seq.).
       "(C) For purposes of subparagraph (B)(1), activities to reduce tobacco use consist of
       tobacco use prevention and reduction programs, including-
               "(1) counter-marketing and counter-advertising;
               "(ii) school and community-based education and prevention programs;
               "(iii) smoking cessation programs (including training for health care professionals
       and providers on how to conduct such programs);
               "(iv) enforcement oflaws relating to tobacco products; and
               "(v) evaluation and surveillance of the effectiveness of such programs and
       activities.
       "(D) Nothing in subparagraph (B) shall be construed as limiting the authority ofthe
       Secretary under this title to-
               "(1) require reports and conduct investigations to ensure that a State is complying
       with a certification submitted under that subparagraph and clause (iii) of that
       subparagraph; or
               '(ii) limit or deny Federal payments under this section to a State that has failed to
       so comply.
       "(E) Funds described in subparagraph (B)(i) shall be used to supplement not supplant
other Federal, State, or local funds provided for any of the purposes described in subparagraph
(C) and shall not be used as State matching funds. To receive funds under subsection (B)(i)
States must demonstrate a maintenance of effort. This maintenance of effort is defined as the
sum of--
       (i) an amount equal to 100 percent of Federal fiscal year 1998 State spending on the
       programs under subparagraph (C) and
       (ii) an amount equal to the product of the amount described in paragraph (1) and
               (AA) for 1999, the lower of -
                       (1) general inflation as measured by the consumer price index for the
                       prevIOus year; or
                       (II) the annual change in the Federal appropriation for the program in the


                                                  -3-
                           Hex-Dump Conversion


               previous fiscal year; and
       (BB) for subsequent fiscal years, the lower of -
               (I) the cumulative general inflation as measured by the consumer price
               index for the period between 1998 and the previous year; or
               (ii) the cumulative change in the Federal appropriation for the program for
               the period between fiscal year 1998 and the previous fiscal year.
The maintenance-of-effort requirement in paragraph (i), and the adjustments in paragraph
(ii), apply to each program identified in paragraph (i) on an individual basis."




                                           -4-
    
billion in cost. ==================== ATTACHMENT 1 ==================== ATT CREATION TIME/DATE: 0 00:00:00.00 TEXT: Unable to convert ARMS_EXT: [ATTACH.D13]MAIL44146767S.036 to ASCII, The following is a HEX DUMP: FF5750431B050000010A02010000000205000000BA270000000200OOB37D7995DCE4AB1C90A959 FB5DCAF10DCE4BC43D439F5259E4719C9BAC3496E9CE39920B4EAB1DC4B1467252ACACAEA27D24 7EB6F3D71467B65D4FCC7AOC9BOEC4B90612C534F9324E5B7AAC36B70B4E36B3520EFCIBABBB39 B5CC5405AA43FE7E2913C4BEB50C19FD67FEDE97AF043469CB1CBOCB5CB4FBE570DF95BD9B76DB OF30B6FOEA410EDOBD8F2445049FD69AFBA5B96E65893A159520942BOA92AB246777B09CD2BE9C B7EEEDE7C99D8C45729A1BFOB3FCDE422470A3A3CD9B68BB017FOFAC19F97310B8CBDDF4B26147 6B45DCBOCDBC2F3FD40AFC7C310D50792158D14DE7A9FBCC652FCB051746BDC6B3EE13FD259BCE B131B157C099422FB23E5DC41E228F9CE016D5D6B6EE384F054723B09D6B58C7F3AA21082BBE8D 3BA2520BAF31712C133F24FC7B5FB85FD4590AC7BC06B2A0273688CA6A7C0906204BDC1EB2DDEO OBB2944FB705AODF6FDA74B906C756257B1B9F32EA4DCB70C2D92C733AC20259942F7B1B6B787C 4B399FBF6283BB79C5743AAB3CE133B111AE5B174A9AB1C85E2D98FAF258C6C1BF4BC9DOF458B2 1C4ECDOEF2F41DD53B4BAA763FB3D3FA14FF4C45C0154165F790195B2D92F7770811EDCEF372B3 ABA9C92FFE9AD4E62B52F06D2267CEBDE3DAEE4A6AA5F00134F66B6BF49FDD57E09340DOC473FO C9EIF0922A02000BOOOOOOOOOOOOOOOOOOOOOOOB23010000000BOl00009A020000005505000000 Hex-Dump Conversion Modified version ofChafee recoupment bill with funds for IDEA A BILL To amend title XIX of the Social Security Act to pennit the Secretary of Health and Human Services to waive recoupment under the Medicaid program of certain funds received by a State from manufacturers of tobacco products if a State uses a portion of such funds for tobacco use prevention and reduction programs. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, Section 1. Short Title. This Act may be cited as the " _ _ _ Act of 1999". Section 2. Findings. Congress makes the following findings: (1) Tobacco products are the foremost preventable health problem facing America today. More than 400,000 individuals die each year as a result of tobacco induced illnesses and conditions. (2) Virtually all new users of tobacco products are under legal age. Every day, 3,000 young people become regular smokers. Of these children, 1,000 will die prematurely from a tobacco-related disease. (3) Tobacco products are inherently dangerous and cause cancer, heart disease, and other serious adverse health effects. (4) Medicaid is a joint Federal-State partnership program designed to provide health care to citizens with low-income. (5) On average, the Federal Government pays 57 percent of the costs of the Medicaid program, and no State must pay for more than 50 percent of the cost of the program in that State. (6) The comprehensive settlement of November 1998 between manufacturers of tobacco products (as defined in section 5702(d) of the Internal Revenue Code of 1986) and States, and the individual State settlements reached with such -1- Hex-Dump Conversion manufacturers, include claims arising out of the Medicaid program. (7) It is in the interest of the public health to target a portion of the funds received by States as a result of such settlements towards combating the problem of youth smoking. Sec. 3 WAIVER OF RECOUPMENT UNDER THE MEDICAID PROGRAM OF TOBACCO-RELATED FUNDS (A) IN GENERAL-Section 1903 (d)(3) of the Social Security Act (42 U.S.C. 1396b (d)(3)) is amended- (1) by inserting "(A)" before "The"; and (2) by adding at the end of the following: "(B) The Secretary shall waive the applicability of subparagraph (A) and paragraph (2)(B) with respect to amounts recovered or paid to a State as part of the comprehensive settlement of November 1998 between manufacturers of tobacco products (as defined in section S702(d) of the Internal Revenue Code of 1986) and States, or as part of any individual State settlement or judgement reached in litigation initiated or pursued by a State against one or more such manufacturers, if, with respect to a fiscal year, the Governor or Chief Executive Officer of the State- "(I) certifies that at least 20 percent of such amounts received during the fiscal year will be expended on activities to reduce tobacco use described in subparagraph (C); and "(AA) includes as part of such certification a written description of how such amounts will be expended; and "(BB) supplements and does not supplant the level of funds expended by the State in 1998 for similar activities in the State, as defined in subparagraph (E); and "(ii) certifies that at least 37 percent of such amounts received during the fiscal year will be expended on activities required by the Individuals with Disabilities Act (20 -2- U@.(-~~~ U.S.C. 1411 et. seq.). "(C) For purposes of subparagraph (B)(1), activities to reduce tobacco use consist of tobacco use prevention and reduction programs, including- "(1) counter-marketing and counter-advertising; "(ii) school and community-based education and prevention programs; "(iii) smoking cessation programs (including training for health care professionals and providers on how to conduct such programs); "(iv) enforcement oflaws relating to tobacco products; and "(v) evaluation and surveillance of the effectiveness of such programs and activities. "(D) Nothing in subparagraph (B) shall be construed as limiting the authority ofthe Secretary under this title to- "(1) require reports and conduct investigations to ensure that a State is complying with a certification submitted under that subparagraph and clause (iii) of that subparagraph; or '(ii) limit or deny Federal payments under this section to a State that has failed to so comply. "(E) Funds described in subparagraph (B)(i) shall be used to supplement not supplant other Federal, State, or local funds provided for any of the purposes described in subparagraph (C) and shall not be used as State matching funds. To receive funds under subsection (B)(i) States must demonstrate a maintenance of effort. This maintenance of effort is defined as the sum of-- (i) an amount equal to 100 percent of Federal fiscal year 1998 State spending on the programs under subparagraph (C) and (ii) an amount equal to the product of the amount described in paragraph (1) and (AA) for 1999, the lower of - (1) general inflation as measured by the consumer price index for the prevIOus year; or (II) the annual change in the Federal appropriation for the program in the -3- Hex-Dump Conversion previous fiscal year; and (BB) for subsequent fiscal years, the lower of - (I) the cumulative general inflation as measured by the consumer price index for the period between 1998 and the previous year; or (ii) the cumulative change in the Federal appropriation for the program for the period between fiscal year 1998 and the previous fiscal year. The maintenance-of-effort requirement in paragraph (i), and the adjustments in paragraph (ii), apply to each program identified in paragraph (i) on an individual basis." -4-
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