SF 1484

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/26/2021 01:57pm

A bill for an act
relating to health; requiring certain litigation proceeds to be deposited in a dedicated
account; appropriating money for tobacco use prevention and cessation activities;
amending Minnesota Statutes 2020, 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 2020, 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 fund 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 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.
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; ESTABLISHMENT
AND USES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) As used in this section, the terms in this subdivision have
the meanings given.
new text end

new text begin (b) "Electronic delivery device" has the meaning given in section 609.685, subdivision
1.
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 in
the action styled as In Re Petition of the State of Minnesota for an Order Compelling Payment
of Settlement Proceeds Related to ITG Brands, LLC, No. 62-CV-18-1912 (Minnesota
District Court, Second Judicial District).
new text end

new text begin (d) "Tobacco" has the meaning given in section 609.685, subdivision 1.
new text end

new text begin Subd. 2. 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 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. 3. new text end

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

new text begin (a) Each fiscal year, $15,000,000 from the tobacco
use prevention account is appropriated to the commissioner of health for:
new text end

new text begin (1) tobacco use prevention and cessation projects consistent with the duties specified in
section 144.392;
new text end

new text begin (2) a public information program under section 144.393;
new text end

new text begin (3) the development of health promotion and health education materials about tobacco
use prevention and cessation;
new text end

new text begin (4) tobacco use prevention activities under section 144.396; and
new text end

new text begin (5) statewide tobacco cessation services under section 144.397.
new text end

new text begin (b) In the event that the balance in the tobacco use prevention account is less than
$15,000,000 on July 1, all money in the account on that date is appropriated to the
commissioner of health for the uses specified in paragraph (a).
new text end

new text begin (c) In activities funded under this subdivision, the commissioner of health must prioritize
preventing youth use of commercial tobacco and electronic delivery devices, must promote
racial and health equity, and must use strategies that are evidence-based or based on
promising practices.
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