4th Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to health; creating a medical education and 1.3 research endowment fund, the Minnesota families 1.4 foundation, a tobacco prevention endowment fund, 1.5 senior prescription drug endowment fund, and a health 1.6 care fund; appropriating money; amending Minnesota 1.7 Statutes 1998, section 62J.69; proposing coding for 1.8 new law in Minnesota Statutes, chapters 10; 62J; 137; 1.9 144; and 256. 1.10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.11 Section 1. [10.57] [MINNESOTA FAMILIES FOUNDATION.] 1.12 Subdivision 1. [ESTABLISHMENT.] The legislature finds that 1.13 the Minnesota families foundation will foster a public-private 1.14 partnership that will provide improved services to clients, a 1.15 more effective coordination of services, and a more efficient 1.16 allocation of resources. The Minnesota families foundation is a 1.17 nonprofit foundation established to support self-sufficiency and 1.18 reduce long-term dependency on government. The foundation shall 1.19 operate as a supporting organization under the Internal Revenue 1.20 Code, section 509(a), and chapter 317A. The foundation is not 1.21 subject to chapters 13, 14, 16A, 16B, 16C, 43A, and 179A. 1.22 Subd. 2. [BOARD MEMBERSHIP.] The foundation shall be 1.23 governed by a 15-member board of directors consisting of: 1.24 (1) four members, who are not state employees, appointed by 1.25 the governor; 1.26 (2) four members, who are not members of the legislature, 1.27 two of whom are appointed by the senate and two of whom are 2.1 appointed by the house of representatives; and 2.2 (3) seven members appointed by the board itself. 2.3 Subd. 3. [TERMS; COMPENSATION; REMOVAL.] (a) Board members 2.4 appointed by the governor and the legislature shall serve during 2.5 the term of the appointing authority. The governor and the 2.6 legislature shall make initial appointments of board members, as 2.7 specified in subdivision 2, as soon as possible after the 2.8 effective date of this section. Initially appointed board 2.9 members' terms shall begin on July 1, 1999. Two of the 2.10 governor's initial appointments shall be for two-year terms. 2.11 Subsequent appointments shall be made at the beginning of each 2.12 regular session of the legislature. The board members appointed 2.13 by the governor and the legislature shall appoint seven board 2.14 members no later than January 1, 2000. Board members appointed 2.15 by the board shall serve four-year terms. A vacancy on the 2.16 board shall be filled for the unexpired portion of the term in 2.17 the same manner as the original appointment. 2.18 (b) Board members shall be reimbursed for reasonable 2.19 out-of-pocket expenses actually incurred. 2.20 (c) Board members must disclose fully to the board of 2.21 directors whenever they may have a conflict of interest within 2.22 the meaning of section 317A.255, subdivision 2. Liability of 2.23 board members shall be governed by section 317A.257. 2.24 Subd. 4. [ORGANIZATION.] The board of directors shall 2.25 adopt bylaws necessary for the conduct of the business of the 2.26 foundation. The board shall select a chairperson from its 2.27 members, and any other officers the board deems necessary. 2.28 Board meetings shall be open to the public, and all grants, 2.29 contracts, and meeting minutes of the foundation shall be 2.30 available to the public. 2.31 Subd. 5. [EXECUTIVE DIRECTOR; EMPLOYEES OF THE 2.32 FOUNDATION.] (a) The board members appointed by the governor and 2.33 the legislature shall convene prior to January 1, 2000, and hire 2.34 an executive director. The executive director shall serve at 2.35 the pleasure of the board of directors. The executive director 2.36 shall serve as a nonvoting member of the board. The executive 3.1 director's compensation shall be capped at 95 percent of the 3.2 governor's salary. 3.3 (b) The executive director shall oversee the daily 3.4 operations of the foundation, including the hiring of necessary 3.5 staff. Employees of the foundation are not state employees. 3.6 (c) The executive director shall prepare an annual budget 3.7 for the foundation for review and approval by the board of 3.8 directors. 3.9 (d) To the extent that the board of directors makes funds 3.10 available, the commissioner of finance shall provide 3.11 administrative support to the foundation until June 30, 2000, 3.12 including but not limited to processing of payroll for the 3.13 executive director and foundation staff, payment of expenses to 3.14 board members, and payment of rent. The board of directors 3.15 shall make up to $200,000 available to the commissioner of 3.16 finance to cover payroll, expenses of board members, rent, and 3.17 other administrative expenses incurred to support the foundation 3.18 in fiscal year 2000. 3.19 Subd. 6. [FOUNDATION FUNDS.] (a) The board of directors 3.20 shall be responsible for managing the investment of the 3.21 foundation funds as follows: 3.22 (1) the foundation funds shall be audited annually by an 3.23 independent certified public accountant in accordance with 3.24 generally accepted accounting principles; 3.25 (2) the foundation funds shall be invested and managed 3.26 according to rules applicable to trust investments, as provided 3.27 in the Minnesota Prudent Investor Act, sections 501B.151 and 3.28 501B.152; 3.29 (3) reasonable and necessary administrative and investment 3.30 expenses directly associated with the management and investment 3.31 of the foundation funds may be paid from the foundation trusts; 3.32 and 3.33 (4) according to limits established by the board and 3.34 consistent with the limitations in the Uniform Management of 3.35 Institutional Funds Act, sections 309.62 to 309.71, earnings on 3.36 foundation funds shall be expended to cover administrative 4.1 expenses of the foundation and grant awards under subdivision 7. 4.2 (b) The board may contract with a third party, including 4.3 the state board of investment, to carry out the provisions of 4.4 paragraph (a). 4.5 (c) The foundation may accept gifts from private donors. 4.6 Such gifts to the foundation must be accounted for and expended 4.7 in a manner consistent with this section. 4.8 Subd. 7. [FOUNDATION GRANTS.] (a) Beginning July 1, 2000, 4.9 the foundation shall provide grants to nonprofit, 4.10 community-based organizations for activities that: 4.11 (1) are flexible and innovative and that close the gap 4.12 between dependence on government and independence from 4.13 government programs; 4.14 (2) support the efforts of working families and working 4.15 individuals to remain self-sufficient by building assets that 4.16 promote healthy family functioning and stability; 4.17 (3) will ensure that core public sector efforts to 4.18 encourage self-sufficiency have every opportunity to succeed; 4.19 (4) focus resources in a way that can demonstrate impact on 4.20 a single goal or a single set of goals; 4.21 (5) have demonstrated success in reducing future government 4.22 expenditures; 4.23 (6) contribute to increasing the understanding of the 4.24 development of young children's brains or to developing new 4.25 methods to increase the effectiveness of stimulation and 4.26 educational activities that will improve brain development in 4.27 young children; or 4.28 (7) enhance public education, awareness, and understanding 4.29 necessary for the promotion and encouragement of activities and 4.30 decisions that protect and stimulate young children's 4.31 development. 4.32 (b) All grantees must match funds received from the 4.33 foundation, dollar for dollar. The match may include up to 25 4.34 percent in-kind. The match cannot be made with federal, state, 4.35 or local government funds except in collaborative projects 4.36 between governmental entities and the private sector. 5.1 (c) The foundation grants must not be used as a substitute 5.2 for traditional state or local sources of funding activities for 5.3 families and young children, but the endowment fund may be used 5.4 to supplement traditional state or local sources, including 5.5 sources used to support the activities described in this 5.6 subdivision. 5.7 Subd. 8. [REPORTS TO THE LEGISLATURE.] (a) The foundation 5.8 shall annually report to the governor and the legislature on 5.9 January 15th of each year. The report must include: 5.10 (1) a financial report that details the foundation's 5.11 earnings; 5.12 (2) an expense report detailing the amounts and purposes 5.13 for which funds were expended; 5.14 (3) a list of grant awards; 5.15 (4) a report on the performance results of these grants; 5.16 and 5.17 (5) a copy of the independent audit reports for the two 5.18 previous years. 5.19 (b) The foundation shall also report to the governor and 5.20 the legislature on January 15, 2000. This report shall include 5.21 a copy of the foundation's mission statement, bylaws, and 5.22 policies adopted by the board of directors; and a financial 5.23 report that details the foundation's returns and the amounts and 5.24 purposes for which funds were expended. 5.25 Subd. 9. [DISSOLUTION OF THE FOUNDATION.] By June 30, 5.26 2009, the foundation shall transfer all foundation assets to the 5.27 commissioner of finance, who shall record them as assets of the 5.28 general fund and cause them to be liquidated or invested, as 5.29 appropriate, by the state board of investment. On June 30, 5.30 2009, the foundation is dissolved. If the legal status of the 5.31 foundation or the foundation funds is successfully challenged in 5.32 state or federal court, the foundation must be dissolved and the 5.33 assets likewise returned to commissioner of finance for credit 5.34 to the general fund and investment by the state board of 5.35 investment. 5.36 Sec. 2. Minnesota Statutes 1998, section 62J.69, is 6.1 amended to read: 6.2 62J.69 [MEDICAL EDUCATIONAND RESEARCH TRUST FUND.] 6.3 Subdivision 1. [DEFINITIONS.] For purposes of this 6.4 section, the following definitions apply: 6.5 (a) "Medical education" means the accredited clinical 6.6 training of physicians (medical students and residents), doctor 6.7 of pharmacy practitioners, doctors of chiropractic, dentists, 6.8 advanced practice nurses (clinical nurse specialist, certified 6.9 registered nurse anesthetists, nurse practitioners, and 6.10 certified nurse midwives), and physician assistants. 6.11 (b) "Clinical training" means accredited training for the 6.12 health care practitioners listed in paragraph (a) that is funded 6.13 in part by patient care revenues and that occurs in either an 6.14 inpatient or ambulatory patient care training site. 6.15 (c) "Trainee" means students involved in an accredited 6.16 clinical training program for medical education as defined in 6.17 paragraph (a). 6.18 (d) "Eligible trainee" means a student involved in an 6.19 accredited training program for medical education as defined in 6.20 paragraph (a), which meets the definition of clinical training 6.21 in paragraph (b), who is in a training site that is located in 6.22 Minnesota and which has a medical assistance provider number. 6.23 (e)"Health care research" means approved clinical,6.24outcomes, and health services investigations that are funded by6.25patient out-of-pocket expenses or a third-party payer.6.26(f)"Commissioner" means the commissioner of health. 6.27(g)(f) "Teaching institutions" means any hospital, medical 6.28 center, clinic, or other organization that currently sponsors or 6.29 conducts accredited medical education programs or clinical 6.30 research in Minnesota. 6.31(h)(g) "Accredited training" means training provided by a 6.32 program that is accredited through an organization recognized by 6.33 the department of education or the health care financing 6.34 administration as the official accrediting body for that program. 6.35(i)(h) "Sponsoring institution" means a hospital, school, 6.36 or consortium located in Minnesota that sponsors and maintains 7.1 primary organizational and financial responsibility for an 7.2 accredited medical education program in Minnesota and which is 7.3 accountable to the accrediting body. 7.4 Subd. 1a. [ADVISORY COMMITTEE.] The commissioner shall 7.5 appoint an advisory committee to provide advice and oversight on 7.6 the distribution of funds from the medical education and 7.7 research endowment fund. If a committee is appointed, the 7.8 commissioner shall: 7.9 (1) consider the interest of all stakeholders when 7.10 selecting committee members; 7.11 (2) select members that represent both urban and rural 7.12 interest; and 7.13 (3) select members that include ambulatory care as well as 7.14 inpatient perspectives. 7.15 The commissioner shall appoint to the advisory committee 7.16 representatives of the following groups: medical researchers, 7.17 public and private academic medical centers, including a 7.18 representative from each academic center offering an accredited 7.19 training program for physicians, pharmacists, chiropractors, 7.20 dentists, and nurses, managed care organizations, Blue Cross and 7.21 Blue Shield of Minnesota, commercial carriers, Minnesota Medical 7.22 Association, Minnesota Nurses Association, Minnesota 7.23 Chiropractic Association, medical product manufacturers, 7.24 employers, and other relevant stakeholders, including 7.25 consumers. The advisory committee is governed by section 7.26 15.059, for membership terms and removal of members and expires 7.27 on June 30, 2001. 7.28 Subd. 2. [ALLOCATION AND FUNDING FOR MEDICAL EDUCATIONAND7.29RESEARCH.] (a)The commissioner may establish a trust fund for7.30the purposes of funding medical education and research7.31activities in the state of Minnesota.7.32(b) By January 1, 1997, the commissioner may appoint an7.33advisory committee to provide advice and oversight on the7.34distribution of funds from the medical education and research7.35trust fund. If a committee is appointed, the commissioner7.36shall: (1) consider the interest of all stakeholders when8.1selecting committee members; (2) select members that represent8.2both urban and rural interest; and (3) select members that8.3include ambulatory care as well as inpatient perspectives. The8.4commissioner shall appoint to the advisory committee8.5representatives of the following groups: medical researchers,8.6public and private academic medical centers, managed care8.7organizations, Blue Cross and Blue Shield of Minnesota,8.8commercial carriers, Minnesota Medical Association, Minnesota8.9Nurses Association, medical product manufacturers, employers,8.10and other relevant stakeholders, including consumers. The8.11advisory committee is governed by section 15.059, for membership8.12terms and removal of members and will sunset on June 30, 1999.8.13(c)Eligible applicants for funds are accredited medical 8.14 education teaching institutions, consortia, and programs 8.15 operating in Minnesota. Applications must be submitted by the 8.16 sponsoring institution on behalf of the teaching program, and 8.17 must be received by September 30 of each year for distribution 8.18 in January of the following year. An application for funds must 8.19 include the following: 8.20 (1) the official name and address of the sponsoring 8.21 institution and the official name and address of the facility or 8.22 programs on whose behalf the institution is applying for 8.23 funding; 8.24 (2) the name, title, and business address of those persons 8.25 responsible for administering the funds; 8.26 (3) for each accredited medical education program for which 8.27 funds are being sought the type and specialty orientation of 8.28 trainees in the program, the name, address, and medical 8.29 assistance provider number of each training site used in the 8.30 program, the total number of trainees at each site, and the 8.31 total number of eligible trainees at each training site; 8.32 (4) audited clinical training costs per trainee for each 8.33 medical education program where available or estimates of 8.34 clinical training costs based on audited financial data; 8.35 (5) a description of current sources of funding for medical 8.36 education costs including a description and dollar amount of all 9.1 state and federal financial support, including Medicare direct 9.2 and indirect payments; 9.3 (6) other revenue received for the purposes of clinical 9.4 training; and 9.5 (7) other supporting information the commissioner, with 9.6 advice from the advisory committee, determines is necessary for 9.7 the equitable distribution of funds. 9.8(d)(b) The commissioner shall distribute medical education 9.9 funds to all qualifying applicants based on the following basic 9.10 criteria: (1) total medical education funds available; (2) 9.11 total eligible trainees in each eligible education program;and9.12 (3) the statewide average cost per trainee, by type of trainee, 9.13 in each medical education program; (4) the degree to which the 9.14 applicant's training programs are funded with patient care 9.15 revenues; (5) the degree to which the training of eligible 9.16 trainees takes place in patient care settings that face 9.17 increased financial pressure as a result of competition with 9.18 nonteaching patient care entities; and (6) whether the eligible 9.19 education program emphasizes primary care or specialties that 9.20 are in undersupply in Minnesota. Funds distributed shall not be 9.21 used to displace current funding appropriations from federal or 9.22 state sources. Funds shall be distributed to the sponsoring 9.23 institutions indicating the amount to be paid to each of the 9.24 sponsor's medical education programs based on the criteria in 9.25 this paragraph. Sponsoring institutions which receive funds 9.26 from thetrustfund must distribute approved funds to the 9.27 medical education program according to the commissioner's 9.28 approval letter. Further, programs must distribute funds among 9.29 the sites of training as specified in the commissioner's 9.30 approval letter. Any funds not distributed as directed by the 9.31 commissioner's approval letter shall be returned to the medical 9.32 education and researchtrustfund within 30 days of a notice 9.33 from the commissioner. The commissioner shall distribute 9.34 returned funds to the appropriate entities in accordance with 9.35 the commissioner's approval letter. 9.36(e)(c) Medical education programs receiving funds from the 10.1trustfund must submit a medical education and research grant 10.2 verification report (GVR) through the sponsoring institution 10.3 based on criteria established by the commissioner. If the 10.4 sponsoring institution fails to submit the GVR by the stated 10.5 deadline, or to request and meet the deadline for an extension, 10.6 the sponsoring institution is required to return the full amount 10.7 of the medical education and researchtrustfund grant to the 10.8 medical education and researchtrustfund within 30 days of a 10.9 notice from the commissioner. The commissioner shall distribute 10.10 returned funds to the appropriate entities in accordance with 10.11 the commissioner's approval letter. The reports must include: 10.12 (1) the total number of eligible trainees in the program; 10.13 (2) the programs and residencies funded, the amounts of 10.14trustfund payments to each program, and within each program, 10.15 the dollar amount distributed to each training site; and 10.16 (3) other information the commissioner, with advice from 10.17 the advisory committee, deems appropriate to evaluate the 10.18 effectiveness of the use of funds for clinical training. 10.19 The commissioner, with advice from the advisory committee, 10.20 will provide an annual summary report to the legislature on 10.21 program implementation due February 15 of each year. 10.22(f)(d) The commissioner is authorized to distribute funds 10.23 made available through: 10.24 (1) voluntary contributions by employers or other entities; 10.25 (2) allocations for the department of human services to 10.26 support medical education and research; and 10.27 (3) other sources as identified and deemed appropriate by 10.28 the legislaturefor inclusion in the trust fund. 10.29(g) The advisory committee shall continue to study and make10.30recommendations on:10.31(1) the funding of medical research consistent with work10.32currently mandated by the legislature and under way at the10.33department of health; and10.34(2) the costs and benefits associated with medical10.35education and research.10.36Subd. 3. [MEDICAL ASSISTANCE AND GENERAL ASSISTANCE11.1SERVICE.] The commissioner of health, in consultation with the11.2medical education and research costs advisory committee, shall11.3develop a system to recognize those teaching programs which11.4serve higher numbers or high proportions of public program11.5recipients and shall report to the legislative commission on11.6health care access by January 15, 1998, on an allocation formula11.7to implement this system.11.8 Subd. 4. [TRANSFERS FROM THE COMMISSIONER OF HUMAN 11.9 SERVICES.] (a) The amount transferred according to section 11.10 256B.69, subdivision 5c, shall be distributed by the 11.11 commissioner to qualifying applicants based on a distribution 11.12 formula that reflects a summation of two factors: 11.13 (1) an education factor, which is determined by the total 11.14 number of eligible trainees and the total statewide average 11.15 costs per trainee, by type of trainee, in each program; and 11.16 (2) a public program volume factor, which is determined by 11.17 the total volume of public program revenue received by each 11.18 training site as a percentage of all public program revenue 11.19 received by all training sites in thetrustfundpool. 11.20 In this formula, the education factor shall be weighted at 11.21 50 percent and the public program volume factor shall be 11.22 weighted at 50 percent. 11.23 (b) Public program revenue for the formula in paragraph (a) 11.24 shall include revenue from medical assistance, prepaid medical 11.25 assistance, general assistance medical care, and prepaid general 11.26 assistance medical care. 11.27 (c) Training sites that receive no public program revenue 11.28 shall be ineligible for payments from the prepaid medical 11.29 assistance program transfer pool. 11.30 Subd. 5. [REVIEW OF ELIGIBLE PROVIDERS.](a) Provider11.31groups added after January 1, 1998, to the list of providers11.32eligible for the trust fund shall not receive funding from the11.33trust fund without prior evaluation by the commissioner and the11.34medical education and research costs advisory committee. The11.35evaluation shall consider the degree to which the training of11.36the provider group:12.1(1) takes place in patient care settings, which are12.2consistent with the purposes of this section;12.3(2) is funded with patient care revenues;12.4(3) takes place in patient care settings, which face12.5increased financial pressure as a result of competition with12.6nonteaching patient care entities; and12.7(4) emphasizes primary care or specialties, which are in12.8undersupply in Minnesota.12.9Results of this evaluation shall be reported to the12.10legislative commission on health care access. The legislative12.11commission on health care access must approve funding for the12.12provider group prior to their receiving any funding from the12.13trust fund. In the event that a reviewed provider group is not12.14approved by the legislative commission on health care access,12.15trainees in that provider group shall be considered ineligible12.16trainees for the trust fund distribution.12.17(b)The commissioner and the medical education and research 12.18 costs advisory committee mayalsoreview the eligible list of 12.19 provider groups, which were added to the eligible list of12.20provider groups prior to January 1, 1998,to assure that the 12.21trustfund moneycontinues to beis distributed consistent with 12.22 the purpose of this section. The results of any such reviews 12.23 must be reported to the legislative commission on health care 12.24 access. Trainees in provider groups,which were added prior to12.25January 1, 1998, andwhich are reviewed by the commissioner and 12.26 the medical education and research costs advisory committee, 12.27 shall be considered eligible trainees for purposes of thetrust12.28 fund distribution unless and until the legislative commission on 12.29 health care access disapproves their eligibility, in which case 12.30 they shall be considered ineligible trainees. 12.31 Sec. 3. [62J.691] [MEDICAL EDUCATION AND RESEARCH 12.32 ENDOWMENT FUND.] 12.33 Subdivision 1. [CREATION.] The medical education and 12.34 research endowment fund is created as an account in the state 12.35 treasury. The commissioner of finance shall credit to the fund 12.36 20.25 percent of the tobacco settlement payments received by the 13.1 state on January 3, 2000, January 2, 2001, January 2, 2002, and 13.2 January 2, 2003, as a result of the settlement of the lawsuit 13.3 styled as State v. Philip Morris Incorporated, No. C1-94-8565. 13.4 The state board of investment shall invest the fund under 13.5 section 11A.24. All earnings of the fund must be credited to 13.6 the fund. The principle of the fund must be maintained 13.7 inviolate. 13.8 Subd. 2. [ENDOWMENT FUND EXPENDITURES.] (a) Up to five 13.9 percent of the fair market value of the fund on the preceding 13.10 July 1 shall be spent for medical education and research 13.11 activities in the state of Minnesota. 13.12 (b) Beginning July 1, 2000, and on July 1 of each year 13.13 thereafter, 50 percent of the amount in paragraph (a) is 13.14 appropriated from the fund to the commissioner of health to be 13.15 distributed for medical education in accordance with section 13.16 62J.69. 13.17 (c) Beginning July 1, 2000, and July 1 of each year 13.18 thereafter, 25 percent of the amount in paragraph (a) is 13.19 appropriated from the fund to the commissioner of health to be 13.20 distributed for medical research in accordance with the 13.21 recommendations submitted in accordance with section 62J.692. 13.22 (d) Beginning July 1, 2000, and on July 1 of each year 13.23 thereafter, 25 percent of the amount in paragraph (a) is to be 13.24 appropriated for the instructional costs of health professional 13.25 programs at publicly funded academic health centers. These 13.26 earnings shall not be spent except under appropriation by law. 13.27 Subd. 3. [AUDITS REQUIRED.] The legislative auditor shall 13.28 audit endowment fund expenditures to ensure that the money is 13.29 spent for the purposes set out in this section. 13.30 Subd. 4. [SUNSET.] The medical education and research 13.31 endowment fund expires June 30, 2015. Upon expiration, the 13.32 commissioner of finance shall transfer the principal and any 13.33 remaining interest to the general fund. 13.34 Sec. 4. [62J.692] [MEDICAL RESEARCH.] 13.35 The commissioner of health, in consultation with the 13.36 medical education and research costs advisory committee, shall 14.1 make recommendations for a process for the submission, review, 14.2 and approval of research grant applications. The process shall 14.3 give priority for grants to applications that are intended to 14.4 gather preliminary data for submission for a subsequent proposal 14.5 for funding from a federal agency or foundation, which awards 14.6 research money on a competitive, peer reviewed basis. Grant 14.7 recipients must be able to demonstrate the ability to comply 14.8 with federal regulations on human subjects research in 14.9 accordance with Code of Federal Regulations, title 45, section 14.10 46, and shall conduct the proposed research. Grants may be 14.11 awarded to the University of Minnesota, the Mayo clinic, or any 14.12 other public or private organization in the state involved in 14.13 medical research. The commissioner shall report to the 14.14 legislature by January 15, 2000, with recommendations. 14.15 Sec. 5. [62J.82] [HEALTH CARE FUND.] 14.16 The health care fund is created as an account in the state 14.17 treasury. The commissioner of finance shall credit to the fund 14.18 $38,000,000 of each tobacco settlement payment received by the 14.19 state in the month of December beginning December of 2003 as a 14.20 result of the settlement of the lawsuit styled as State of 14.21 Minnesota v. Philip Morris Incorporated, No. C1-94-8565. The 14.22 state board of investment shall invest the fund under section 14.23 11A.24. All earnings of the fund must be credited to the fund. 14.24 Sec. 6. [137.44] [HEALTH PROFESSIONAL EDUCATION BUDGET 14.25 PLAN.] 14.26 The board of regents is requested to adopt a biennial 14.27 budget plan for making expenditures from the medical education 14.28 and research endowment fund dedicated for the instructional 14.29 costs of health professional programs at publicly funded 14.30 academic health centers. The budget plan may be submitted as 14.31 part of the University of Minnesota's biennial budget request. 14.32 Sec. 7. [144.395] [TOBACCO PREVENTION ENDOWMENT FUND.] 14.33 Subdivision 1. [CREATION.] The tobacco prevention 14.34 endowment fund is created as an account in the state treasury. 14.35 The commissioner of finance shall credit to the fund 50 percent 14.36 of the tobacco settlement payments received by the state on 15.1 January 3, 2000, January 2, 2001, January 2, 2002, and January 15.2 2, 2003, as a result of the settlement of the lawsuit styled as 15.3 State v. Philip Morris Incorporated, No. C1-94-8565. The state 15.4 board of investment shall invest the fund under section 11A.24. 15.5 All earnings of the fund must be credited to the fund. The 15.6 principle of the fund must be maintained inviolate. 15.7 Subd. 2. [ENDOWMENT FUND EXPENDITURES.] Earnings from the 15.8 fund shall be spent to reduce the human and economic 15.9 consequences of tobacco use through tobacco prevention 15.10 measures. Beginning July 1, 2000, and on July 1 of each year 15.11 thereafter, up to five percent of the fair market value of the 15.12 fund on the preceding July 1 and up to a prorated five percent 15.13 of deposits received during the preceding year are appropriated 15.14 from the fund to the commissioner of health, who shall pay that 15.15 amount to the Minnesota partnership for action against tobacco. 15.16 Minnesota partnership for action against tobacco shall use the 15.17 amounts received for tobacco use prevention measures, except 15.18 that a maximum of $200,000 of the first year's appropriation and 15.19 $300,000 of each annual appropriation thereafter may be used for 15.20 staffing and other expenses relating to this section. Members 15.21 of the board of directors of the partnership, and members of any 15.22 advisory committees appointed by the board to make 15.23 recommendations for implementing tobacco use prevention efforts, 15.24 may be reimbursed for reasonable expenses actually incurred in 15.25 connection with activities relating to carrying out this 15.26 section, but not for expenses reimbursed from any other source. 15.27 The Minnesota partnership for action against tobacco shall not 15.28 award any grants from the annual appropriations received under 15.29 this subdivision to any project where a partnership board member 15.30 or staff has a substantial financial interest. 15.31 Subd. 3. [AUDITS REQUIRED.] The legislative auditor shall 15.32 audit endowment fund expenditures to ensure that the money is 15.33 spent for tobacco prevention measures. 15.34 Subd. 4. [REPORT.] (a) The Minnesota partnership for 15.35 action against tobacco must submit an annual report to the 15.36 legislature by January 15 of each year, beginning in 2001, on 16.1 prevention measures and initiatives undertaken during the 16.2 preceding year. The report must include: 16.3 (1) an accounting of expenses, detailing the amounts and 16.4 purposes for which money was spent; 16.5 (2) a list of grant awards; 16.6 (3) a report on the results of the tobacco prevention 16.7 measures; 16.8 (4) a copy of the legislative auditor's report; and 16.9 (5) how the statewide prevention efforts have been 16.10 coordinated and delivered through local public health agencies. 16.11 (b) The initial report submitted under this subdivision 16.12 must include a copy of the partnership's bylaws and tobacco 16.13 prevention policies or plans adopted by the board of directors. 16.14 Subd. 5. [SUNSET.] The tobacco prevention endowment fund 16.15 expires on June 30, 2010. Upon expiration, the commissioner of 16.16 finance shall transfer the principal and any remaining interest 16.17 to the general fund. 16.18 Sec. 8. [256.956] [SENIOR PRESCRIPTION DRUG ENDOWMENT 16.19 FUND.] 16.20 Subdivision 1. [CREATION.] The senior prescription drug 16.21 endowment fund is created as an account in the state treasury. 16.22 The commissioner of finance shall credit to the fund 6.75 16.23 percent of the tobacco settlement payments received by the state 16.24 on January 3, 2000, January 2, 2001, January 2, 2002, and 16.25 January 2, 2003, as a result of the settlement of the lawsuit 16.26 styled as State of Minnesota v. Philip Morris Incorporated, No. 16.27 C1-94-8565. The state board of investment shall invest the fund 16.28 under section 11A.24. All earnings of the fund must be credited 16.29 to the fund. 16.30 Subd. 2. [EXPENDITURES.] (a) As part of each biennial and 16.31 supplemental budget, the commissioner of finance shall forecast 16.32 the cost of providing coverage to the enrollees of the senior 16.33 citizen drug program under section 256.955 whose income is 16.34 between 120 percent and 200 percent of the federal poverty 16.35 guidelines and the cost of eliminating the annual premium. The 16.36 commissioner of finance shall recognize the projected costs of 17.1 the program in the fund balance. 17.2 (b) Beginning July 1, 2000, and on July 1 of each year 17.3 thereafter, a sum equal to the projected costs as determined in 17.4 paragraph (a) for the following fiscal year is appropriated from 17.5 the fund to the commissioner of human services to be used for 17.6 the senior citizen drug program. 17.7 Sec. 9. [APPROPRIATIONS.] 17.8 $93,312,000 is appropriated from the general fund to the 17.9 commissioner of finance for transfer to the medical education 17.10 and research endowment fund in the fiscal year ending June 30, 17.11 1999. 17.12 $105,984,000 is appropriated from the general fund to the 17.13 commissioner of finance for payment to the Minnesota families 17.14 foundation in the fiscal year ending June 30, 1999. 17.15 $230,400,000 is appropriated from the general fund to the 17.16 commissioner of finance for transfer to the tobacco prevention 17.17 endowment fund in the fiscal year ending June 30, 1999. 17.18 $31,104,000 is appropriated from the general fund to the 17.19 commissioner of finance for transfer to the senior prescription 17.20 drug endowment fund in the fiscal year ending June 30, 1999. 17.21 Of the tobacco settlement payments received by the state on 17.22 January 3, 2000, January 2, 2001, January 2, 2002, and January 17.23 2, 2003, as a result of the settlement of the lawsuit styled as 17.24 State v. Philip Morris Incorporated, No. C1-94-8565, 23 percent 17.25 is appropriated to the commissioner of finance for payment to 17.26 the Minnesota families foundation. 17.27 Sec. 10. [EFFECTIVE DATE.] 17.28 Sections 1 to 9 are effective the day following final 17.29 enactment.