1.1                          A bill for an act 
  1.2             relating to health; creating a medical education and 
  1.3             research endowment fund, a children's endowment fund, 
  1.4             and a tobacco prevention endowment fund; appropriating 
  1.5             money; proposing coding for new law in Minnesota 
  1.6             Statutes, chapters 62J; and 144; proposing coding for 
  1.7             new law as Minnesota Statutes, chapter 119C. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [62J.691] [MEDICAL EDUCATION AND RESEARCH 
  1.10  ENDOWMENT FUND.] 
  1.11     Subdivision 1.  [CREATION.] The medical education and 
  1.12  research endowment fund is created as an account in the state 
  1.13  treasury.  The commissioner of finance shall credit to the fund 
  1.14  27 percent of the tobacco settlement payments received by the 
  1.15  state on January 3, 2000, January 2, 2001, January 2, 2002, and 
  1.16  January 2, 2003, as a result of the settlement of the lawsuit 
  1.17  styled as State v. Philip Morris Incorporated, No. C1-94-8565.  
  1.18  The state board of investment shall invest the fund under 
  1.19  section 11A.24.  All earnings of the fund must be credited to 
  1.20  the fund.  
  1.21     Subd. 2.  [EXPENDITURES.] The purpose of the fund is to 
  1.22  provide money to be used for medical education and research 
  1.23  activities in the state of Minnesota.  On July 1 of each year, a 
  1.24  sum equal to five percent of the market value of the fund on the 
  1.25  preceding July 1 is appropriated from the fund to the 
  1.26  commissioner of health, who shall distribute the money in 
  2.1   accordance with section 62J.69.  
  2.2      Sec. 2.  [119C.01] [DEFINITIONS.] 
  2.3      Subdivision 1.  [APPLICABILITY.] The definitions in this 
  2.4   section apply to sections 119C.01 to 119C.05. 
  2.5      Subd. 2.  [ENDOWMENT FUND.] "Endowment fund" means the 
  2.6   children's endowment fund established in section 119C.03. 
  2.7      Subd. 3.  [YOUNG CHILDREN.] "Young children" means children 
  2.8   through the age of four years. 
  2.9      Sec. 3.  [119C.02] [ENDOWMENT FUND NOT TO SUPPLANT EXISTING 
  2.10  FUNDING.] 
  2.11     The endowment fund may not be used as a substitute for 
  2.12  traditional sources of funding activities for young children and 
  2.13  their parents, but the endowment fund must be used to supplement 
  2.14  traditional sources, including sources used to support the 
  2.15  activities in section 119C.04. 
  2.16     Sec. 4.  [119C.03] [CHILDREN'S ENDOWMENT FUND.] 
  2.17     Subdivision 1.  [CREATION.] The children's endowment fund 
  2.18  is created as an account in the state treasury.  The 
  2.19  commissioner of finance shall credit to the fund 23 percent of 
  2.20  the tobacco settlement payments received by the state on January 
  2.21  3, 2000, January 2, 2001, January 2, 2002, and January 2, 2003, 
  2.22  as a result of the settlement of the lawsuit styled as State v. 
  2.23  Philip Morris Incorporated, No. C1-94-8565.  The state board of 
  2.24  investment shall invest the fund under section 11A.24.  All 
  2.25  earnings of the fund must be credited to the fund.  
  2.26     Subd. 2.  [REVENUE.] Nothing in sections 119C.01 to 119C.06 
  2.27  limits the source of contributions to the endowment fund. 
  2.28     Subd. 3.  [GIFTS AND DONATIONS.] Gifts and donations may be 
  2.29  made to the endowment fund.  Noncash gifts and donations must be 
  2.30  disposed of for cash as soon as the board prudently can maximize 
  2.31  the value of the gift or donation.  Gifts and donations of 
  2.32  marketable securities may be held or disposed of for cash at the 
  2.33  option of the board.  The cash receipts of gifts and donations 
  2.34  of cash or capital assets and marketable securities disposed of 
  2.35  for cash must be credited immediately to the principal of the 
  2.36  endowment fund.  The value of marketable securities at the time 
  3.1   the gift or donation is made must be credited to the principal 
  3.2   of the endowment fund, and any earnings from the marketable 
  3.3   securities are earnings of the endowment fund. 
  3.4      Subd. 4.  [AUDITS REQUIRED.] The legislative auditor shall 
  3.5   audit endowment fund expenditures to ensure that the money is 
  3.6   spent for the purposes set out in section 119C.04. 
  3.7      Sec. 5.  [119C.04] [ENDOWMENT FUND EXPENDITURES.] 
  3.8      Money in the endowment fund may be spent as appropriated by 
  3.9   law for: 
  3.10     (1) research that contributes to increasing the 
  3.11  understanding of the development of young children's brains or 
  3.12  to developing new methods to increase the effectiveness of 
  3.13  stimulation and educational activities that will improve brain 
  3.14  development in young children; 
  3.15     (2) collection, analysis, and distribution of information 
  3.16  to communities and families that assists in enhancing the 
  3.17  development of young children; 
  3.18     (3) enhancement of public education, awareness, and 
  3.19  understanding necessary for the promotion and encouragement of 
  3.20  activities and decisions that protect and stimulate young 
  3.21  children's development; and 
  3.22     (4) supplemental funding to those projects that have 
  3.23  demonstrated successful outcomes in improving and enhancing the 
  3.24  development of young children. 
  3.25     Sec. 6.  [119C.05] [ROYALTIES; COPYRIGHTS; PATENTS.] 
  3.26     This section applies to projects supported by the endowment 
  3.27  fund.  The endowment fund owns and shall take title to the 
  3.28  percentage of a royalty, copyright, or patent resulting from a 
  3.29  project supported by the fund equal to the percentage of the 
  3.30  project's total funding provided by the fund.  Cash receipts 
  3.31  resulting from a royalty, copyright, or patent, or the sale of 
  3.32  the endowment fund's rights to a royalty, copyright, or patent, 
  3.33  must be credited immediately to the principal of the endowment 
  3.34  fund. 
  3.35     Sec. 7.  [119C.06] [TASK FORCE.] 
  3.36     Subdivision 1.  [TASK FORCE DUTIES.] (a) A 20-member 
  4.1   advisory task force of legislators and representatives of the 
  4.2   community and foundations shall: 
  4.3      (1) evaluate additional funding sources for the children's 
  4.4   endowment fund; 
  4.5      (2) develop a proposal for governance of the endowment 
  4.6   fund; and 
  4.7      (3) report to the legislature and the governor with 
  4.8   recommendations on additional funding options and a governance 
  4.9   structure by February 1, 2000.  
  4.10     (b) The task force must consider all sources of public and 
  4.11  private funding to adequately establish the endowment fund.  The 
  4.12  task force must provide recommendations on a governance 
  4.13  structure, composition of the governing body, authority and 
  4.14  responsibility for managing funds, and how to best focus the 
  4.15  children's endowment fund to improve outcomes for children 
  4.16  through the age of four years. 
  4.17     Subd. 2.  [APPOINTMENTS.] Legislative appointments to the 
  4.18  advisory task force shall consist of:  five members of the 
  4.19  senate appointed by the subcommittee on committees of the 
  4.20  committee on rules and administration in the senate, including 
  4.21  two minority members; and five members of the house of 
  4.22  representatives appointed by the speaker of the house of 
  4.23  representatives, including two minority members.  In addition, 
  4.24  the governor shall appoint ten public members representing the 
  4.25  community, including parents and foundations.  
  4.26     Sec. 8.  [144.395] [TOBACCO PREVENTION ENDOWMENT FUND.] 
  4.27     Subdivision 1.  [CREATION.] The tobacco prevention 
  4.28  endowment fund is created as an account in the state treasury.  
  4.29  The commissioner of finance shall credit to the fund 50 percent 
  4.30  of the tobacco settlement payments received by the state on 
  4.31  January 3, 2000, January 2, 2001, January 2, 2002, and January 
  4.32  2, 2003, as a result of the settlement of the lawsuit styled as 
  4.33  State v. Philip Morris Incorporated, No. C1-94-8565.  The state 
  4.34  board of investment shall invest the fund under section 11A.24.  
  4.35  All earnings of the fund must be credited to the fund.  
  4.36     Subd. 2.  [EXPENDITURES.] The purpose of the fund is to 
  5.1   provide money to be used by the Minnesota partnership for action 
  5.2   against tobacco to reduce the human and economic consequences of 
  5.3   tobacco use through tobacco prevention measures.  On July 1 of 
  5.4   each year, a sum equal to five percent of the market value of 
  5.5   the fund on the preceding July 1 is appropriated from the fund 
  5.6   to the commissioner of health, who shall pay that amount to the 
  5.7   Minnesota partnership for action against tobacco.  Minnesota 
  5.8   partnership for action against tobacco shall use the amounts 
  5.9   received for tobacco use prevention measures.  
  5.10     Subd. 3.  [AUDITS REQUIRED.] The legislative auditor shall 
  5.11  audit endowment fund expenditures to ensure that the money is 
  5.12  spent for tobacco prevention measures.  
  5.13     Subd. 4.  [REPORT.] Beginning January 15, 2000, and 
  5.14  annually thereafter, the Minnesota Partnership for Action 
  5.15  Against Tobacco must submit a report to the legislature on the 
  5.16  prevention measures and initiatives that have been undertaken 
  5.17  during the preceding year. 
  5.18     Sec. 9.  [APPROPRIATIONS.] 
  5.19     $128,606,000 is appropriated from the general fund to the 
  5.20  commissioner of finance for transfer to the medical education 
  5.21  and research endowment fund in the fiscal year ending June 30, 
  5.22  1999. 
  5.23     $109,554,000 is appropriated from the general fund to the 
  5.24  commissioner of finance for transfer to the children's endowment 
  5.25  fund in the fiscal year ending June 30, 1999. 
  5.26     $238,160,000 is appropriated from the general fund to the 
  5.27  commissioner of finance for transfer to the tobacco prevention 
  5.28  endowment fund in the fiscal year ending June 30, 1999. 
  5.29     Sec. 10.  [EFFECTIVE DATE.] 
  5.30     Sections 1 to 9 are effective the day following final 
  5.31  enactment.