HF 1058

1st Division Engrossment - 91st Legislature (2019 - 2020) Posted on 03/04/2020 05:01pm

A bill for an act
relating to health; requiring certain litigation proceeds to be appropriated to the
commissioner of health and used for tobacco use prevention activities; appropriating
money; amending Minnesota Statutes 2018, section 16A.151, subdivision 2;
proposing coding for new law in Minnesota Statutes, chapter 144.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2019 Supplement, section 16A.151, subdivision 2, is
amended to read:

Subd. 2.

Exceptions.

(a) If a state official litigates or settles a matter on behalf of specific
injured persons or entities, this section does not prohibit distribution of money to the specific
injured persons or entities on whose behalf the litigation or settlement efforts were initiated.
If money recovered on behalf of injured persons or entities cannot reasonably be distributed
to those persons or entities because they cannot readily be located or identified or because
the cost of distributing the money would outweigh the benefit to the persons or entities, the
money must be paid into the general fund.

(b) Money recovered on behalf of a fund in the state treasury other than the general fund
may be deposited in that fund.

(c) This section does not prohibit a state official from distributing money to a person or
entity other than the state in litigation or potential litigation in which the state is a defendant
or potential defendant.

(d) State agencies may accept funds as directed by a federal court for any restitution or
monetary penalty under United States Code, title 18, section 3663(a)(3) or United States
Code, title 18, section 3663A(a)(3). Funds received must be deposited in a special revenue
account and are appropriated to the commissioner of the agency for the purpose as directed
by the federal court.

(e) Tobacco settlement revenues as defined in section 16A.98, subdivision 1, paragraph
(t), may be deposited as provided in section 16A.98, subdivision 12.

(f) Any money received by the state resulting from a settlement agreement or an assurance
of discontinuance entered into by the attorney general of the state, or a court order in litigation
brought by the attorney general of the state, on behalf of the state or a state agency, against
one or more opioid manufacturers or opioid wholesale drug distributors related to alleged
violations of consumer fraud laws in the marketing, sale, or distribution of opioids in this
state or other alleged illegal actions that contributed to the excessive use of opioids, must
be deposited in a separate account in the state treasury and the commissioner shall notify
the chairs and ranking minority members of the Finance Committee in the senate and the
Ways and Means Committee in the house of representatives that an account has been created.
This paragraph does not apply to attorney fees and costs awarded to the state or the Attorney
General's Office, to contract attorneys hired by the state or Attorney General's Office, or to
other state agency attorneys. If the licensing fees under section 151.065, subdivision 1,
clause (16), and subdivision 3, clause (14), are reduced and the registration fee under section
151.066, subdivision 3, is repealed in accordance with section 256.043, subdivision 4, then
the commissioner shall transfer from the separate account created in this paragraph to the
opiate epidemic response account under section 256.043 an amount that ensures that
$20,940,000 each fiscal year is available for distribution in accordance with section 256.043,
subdivisions 2 and 3.

new text begin (g) Money recovered by or ordered to be paid to the state from one or more tobacco
product manufacturers, including future annual payments and arrears payments, under the
terms of a settlement or judgment from litigation regarding annual tobacco settlement
payments on transferred tobacco brands, shall be deposited in the tobacco use prevention
account under section 144.398. For purposes of this paragraph, "litigation regarding annual
tobacco settlement payments on transferred tobacco brands" has the meaning given in section
144.398, subdivision 3, paragraph (c).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to settlements reached or judgments entered on or after that date.
new text end

Sec. 2.

new text begin [144.398] TOBACCO USE PREVENTION ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Account created. new text end

new text begin A tobacco use prevention account is created in the
special revenue fund. The commissioner of management and budget shall deposit into the
account all money recovered by or ordered to be paid to the state from one or more tobacco
product manufacturers, including future annual payments and arrears payments, under the
terms of a settlement or judgment from litigation regarding annual tobacco settlement
payments on transferred tobacco brands.
new text end

new text begin Subd. 2. new text end

new text begin Uses of money in account. new text end

new text begin Each fiscal year, $12,000,000 from the tobacco
use prevention account is appropriated to the commissioner of health for tobacco use
prevention activities in section 144.396. In the event that the balance in the tobacco use
prevention account is less than $12,000,000 on July 1, all money in the account on that date
is appropriated to the commissioner of health for tobacco use prevention activities in section
144.396.
new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section.
new text end

new text begin (b) "Consent judgment" has the meaning given in section 16A.98, subdivision 1,
paragraph (f).
new text end

new text begin (c) "Litigation regarding annual tobacco settlement payments on transferred tobacco
brands" means litigation between the state and certain tobacco product manufacturers related
to the obligation of these manufacturers to make past and future annual tobacco settlement
payments according to the settlement agreement and consent judgment in amounts that
include tobacco brands transferred from one or more tobacco product manufacturers to
another tobacco product manufacturer.
new text end

new text begin (d) "Settlement agreement" has the meaning given in section 16A.98, subdivision 1,
paragraph (h).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to settlements reached or judgments entered on or after that date.
new text end