1.1                          A bill for an act 
  1.2             relating to health; modifying tobacco settlement and 
  1.3             medical education endowment funds; creating healthy 
  1.4             kids learn endowment fund; appropriating money; 
  1.5             amending Minnesota Statutes 2000, sections 16A.87; and 
  1.6             62J.694, subdivisions 2 and 4; proposing coding for 
  1.7             new law in Minnesota Statutes, chapter 145. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 16A.87, is 
  1.10  amended to read: 
  1.11     16A.87 [TOBACCO SETTLEMENT FUND.] 
  1.12     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] The tobacco 
  1.13  settlement fund is established as a clearing account in the 
  1.14  state treasury.  
  1.15     Subd. 2.  [DEPOSIT OF MONEY.] The commissioner shall credit 
  1.16  to the tobacco settlement fund the tobacco settlement payments 
  1.17  received by the state on September 5, 1998, January 4, 1999, 
  1.18  January 3, 2000, and January 2, 2001, January 2, 2002, and 
  1.19  January 2, 2003, as a result of the settlement of the lawsuit 
  1.20  styled as State v. Philip Morris Inc., No. C1-94-8565 (Minnesota 
  1.21  District Court, Second Judicial District).  
  1.22     Subd. 3.  [APPROPRIATION.] (a) Of the amounts credited to 
  1.23  the fund prior to June 30, 2001, 61 percent is appropriated for 
  1.24  transfer to the tobacco use prevention and local public health 
  1.25  endowment fund created in section 144.395 and 39 percent is 
  1.26  appropriated for transfer to the medical education endowment 
  2.1   fund created in section 62J.694. 
  2.2      (b) Of the amount credited to the fund from the payment 
  2.3   made on January 2, 2002, 72.5 percent is appropriated for 
  2.4   transfer to the medical education endowment fund created under 
  2.5   section 62J.694 and 27.5 percent is credited to the healthy kids 
  2.6   learn endowment fund created under section 145.485. 
  2.7      (c) The entire amount credited to the fund from the payment 
  2.8   made on January 2, 2003, is appropriated for transfer to the 
  2.9   healthy kids learn endowment fund. 
  2.10     Subd. 4.  [SUNSET.] The tobacco settlement fund expires 
  2.11  June 30, 2015 2017.  
  2.12     Sec. 2.  Minnesota Statutes 2000, section 62J.694, 
  2.13  subdivision 2, is amended to read: 
  2.14     Subd. 2.  [EXPENDITURES.] (a) For fiscal years 2000 and 
  2.15  2001, up to five percent of the fair market value of the fund is 
  2.16  appropriated for medical education activities in the state of 
  2.17  Minnesota.  The appropriations are to be transferred quarterly 
  2.18  for the purposes identified in the following paragraphs. clauses 
  2.19  (1) and (2):  
  2.20     (b) (1) for fiscal year 2000, 70 percent of the 
  2.21  appropriation in paragraph (a) is for transfer to the board of 
  2.22  regents for the instructional costs of health professional 
  2.23  programs at the academic health center and affiliated teaching 
  2.24  institutions, and 30 percent of the appropriation is for 
  2.25  transfer to the commissioner of health to be distributed for 
  2.26  medical education under section 62J.692.; and 
  2.27     (c) (2) for fiscal year 2001, 49 percent of the 
  2.28  appropriation in paragraph (a) is for transfer to the board of 
  2.29  regents for the instructional costs of health professional 
  2.30  programs at the academic health center and affiliated teaching 
  2.31  institutions, and 51 percent is for transfer to the commissioner 
  2.32  of health to be distributed for medical education under section 
  2.33  62J.692. 
  2.34     (d) (b) For fiscal year 2002, and each year thereafter, up 
  2.35  to five percent of the average of the fair market values of the 
  2.36  fund for the preceding 12 months is appropriated for the 
  3.1   purposes identified in clauses (1) and (2): 
  3.2      (1) 42 percent of the appropriation in paragraph (a) may be 
  3.3   appropriated by another law for the instructional costs of 
  3.4   health professional programs at publicly funded academic health 
  3.5   centers and affiliated teaching institutions,; and 
  3.6      (2) 58 percent is for transfer appropriated to the 
  3.7   commissioner of health to be distributed for medical education 
  3.8   under section 62J.692. 
  3.9      (c) For fiscal year 2003, and each year thereafter, up to 
  3.10  five percent of the average of the fair market values of the 
  3.11  fund for the preceding 12 months is appropriated for the 
  3.12  purposes identified in clauses (1) to (3): 
  3.13     (1) 30.3 percent may be appropriated by another law for the 
  3.14  instructional costs of health professional programs at publicly 
  3.15  funded academic health centers and affiliated teaching 
  3.16  institutions; 
  3.17     (2) 41.5 percent is appropriated to the commissioner to be 
  3.18  distributed for medical education under section 62J.692; and 
  3.19     (3) 28.2 percent is appropriated to the board of regents 
  3.20  for transfer to the University of Minnesota's Academic Health 
  3.21  Center. 
  3.22     (e) (d) A maximum of $150,000 of each annual appropriation 
  3.23  to the commissioner of health in paragraph (d) (b), clause (2), 
  3.24  and paragraph (c), clause (2), may be used by the commissioner 
  3.25  for administrative expenses associated with implementing section 
  3.26  62J.692. 
  3.27     Sec. 3.  Minnesota Statutes 2000, section 62J.694, 
  3.28  subdivision 4, is amended to read: 
  3.29     Subd. 4.  [SUNSET.] The medical education endowment fund 
  3.30  expires June 30, 2015 2017.  Upon expiration, the commissioner 
  3.31  of finance shall transfer the principal and any remaining 
  3.32  interest to the general fund. 
  3.33     Sec. 4.  [145.485] [HEALTHY KIDS LEARN ENDOWMENT FUND.] 
  3.34     Subdivision 1.  [CREATION.] The healthy kids learn 
  3.35  endowment fund is created in the state treasury.  The state 
  3.36  board of investment shall invest the fund under section 11A.24.  
  4.1   All earnings of the fund must be credited to the fund.  The 
  4.2   principal of the fund must be maintained inviolate except that 
  4.3   the principal may be used to make expenditures from the fund for 
  4.4   the purposes specified in this section when the market value of 
  4.5   the fund falls below 105 percent of the cumulative total of the 
  4.6   tobacco settlement payments received by the state and credited 
  4.7   to the tobacco settlement fund under section 16A.87, subdivision 
  4.8   2.  For purposes of this section, "principal" means an amount 
  4.9   equal to the cumulative total of the tobacco settlement payments 
  4.10  received by the state and credited to the tobacco settlement 
  4.11  fund under section 16A.87, subdivision 2. 
  4.12     Subd. 2.  [EXPENDITURES.] (a) Money in the fund is 
  4.13  appropriated to the commissioner of health according to clauses 
  4.14  (1) to (3) and must be spent to improve the health and learning 
  4.15  environment of children statewide through population-based 
  4.16  public health strategies.  Appropriations are: 
  4.17     (1) for fiscal year 2003, five percent of the fair market 
  4.18  value of the fund on January 2, 2002; 
  4.19     (2) for fiscal year 2004, five percent of the fair market 
  4.20  value of the fund on January 2, 2003; and 
  4.21     (3) for fiscal years 2005 and beyond, five percent of the 
  4.22  fair market value of the fund on the preceding July 1. 
  4.23     (b) Of this appropriation, no less than 36 percent in 
  4.24  fiscal year 2003 and no less than 22.4 percent in fiscal year 
  4.25  2004 and beyond is available to the commissioner for grants to 
  4.26  community health boards as defined in section 145A.02 to support 
  4.27  the development and maintenance of a statewide immunization 
  4.28  information service. 
  4.29     (c) Of this appropriation, up to 64 percent in fiscal year 
  4.30  2003 and up to 22.4 percent in fiscal year 2004 and beyond is 
  4.31  available to the commissioner for activities that improve the 
  4.32  health and learning environment of children and youth. 
  4.33     (d) Beginning in fiscal year 2004, no less than 55.2 
  4.34  percent of this appropriation is available to the commissioner 
  4.35  for competitive grants to public-private partnerships.  The 
  4.36  grants must focus on the state priority school health issues 
  5.1   identified by the commissioner of health in consultation with a 
  5.2   steering committee and require a match of at least 25 percent 
  5.3   from nongovernmental sources. 
  5.4      Subd. 3.  [HEALTHY KIDS LEARN OUTCOMES.] It is a goal of 
  5.5   the state to improve the health of children through grade 12 by 
  5.6   the year 2005 as measured by the following criteria:  90 percent 
  5.7   of schools implementing an indoor air quality management plan; 
  5.8   15 percent reduction in asthma-related hospitalizations and 
  5.9   emergency room care; 90 percent of children up to date with 
  5.10  recommended immunizations on their second birthday; 90 percent 
  5.11  of kindergartners up to date with recommended immunizations by 
  5.12  first day of school; 100 percent of preschool and school-age 
  5.13  children are enrolled in the secure immunization information 
  5.14  service, unless their parent requests otherwise.  
  5.15     Subd. 4.  [REPORT.] The commissioner of health shall submit 
  5.16  an annual report to the chairs and members of the house health 
  5.17  and human services finance committee and the senate health, 
  5.18  human services and corrections budget division on the statewide 
  5.19  and local projects funded under this section.  These reports 
  5.20  must include information on grant recipients, activities that 
  5.21  were conducted using grant funds, and evaluation data and 
  5.22  outcome measures, if available.  These reports are due by 
  5.23  January 15 of each year, beginning in 2004. 
  5.24     Subd. 5.  [ENDOWMENT FUND NOT TO SUPPLANT EXISTING 
  5.25  FUNDING.] Appropriations from the account must not be used as a 
  5.26  substitute for traditional sources of funding for school health 
  5.27  programs.  Any local political subdivision of the state 
  5.28  receiving money under this section must ensure that existing 
  5.29  local financial efforts remain in place. 
  5.30     Subd. 6.  [SUNSET.] The healthy kids learn endowment fund 
  5.31  expires June 30, 2017.  Upon the fund's expiration, the 
  5.32  commissioner of finance shall transfer the principal and any 
  5.33  remaining interest to the general fund.