Governor Deval Patrick's Budget Recommendation - House 2 Fiscal Year 2009

Governor's Budget Recommendation FY 2009

Outside Section 11



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Deposit of Tobacco Litigation Proceeds

SECTION 11.   (A) Section 24 of chapter 32A of the General Laws, as inserted by section 8 of chapter 61 of the acts of 2007, is hereby amended by inserting after subsection (b) the following subsection:-
(b 1/2) Ninety per cent of the monies received in any fiscal year as a result of any claim or action undertaken by the attorney general against a manufacturer of cigarettes to recover the amount of medical assistance provided pursuant to chapter 118E or any other claim or action undertaken by the attorney general against a manufacturer of cigarettes including, but not limited to, the action known as Commonwealth of Massachusetts v. Philip Morris, Inc., et al., Middlesex Superior Court, No. 95-7378, shall be deposited in the fund. The remaining 10 per cent of these monies shall be deposited in the General Fund, to be used subject to appropriation for tobacco control and other health care programs.

(B) Notwithstanding subsection (b 1/2) of section 24 of chapter 32A of the General Laws, inserted by subsection (A), for fiscal years 2009 to 2012, inclusive, of the 90 per cent of the monies received in that fiscal year as a result of any claim or action undertaken by the attorney general against a manufacturer of cigarettes to recover the amount of medical assistance provided pursuant to chapter 118E or any other claim or action undertaken by the attorney general against a manufacturer of cigarettes including, but not limited to, the action known as Commonwealth of Massachusetts v. Philip Morris, Inc., et al., Middlesex Superior Court, No. 95-7378, the following portions shall not be deposited in the State Retiree Benefits Trust Fund but rather shall be deposited in the General Fund:
(a) for fiscal year 2009, all of the 90 per cent of those monies;
(b) for fiscal year 2010, 3/4 of the 90 per cent of those monies;
(c) for fiscal year 2011, half of the 90 per cent of those monies;
(d) for fiscal year 2012, 1/4 of the 90 per cent of those monies.
In each such fiscal year, the remainder of the 90 per cent of those monies shall be deposited in the State Retiree Benefits Trust Fund.
 
 

Summary:
This section phases in the deposit of tobacco litigation proceeds in the State Retiree Benefits Trust Fund over four fiscal years. In fiscal year 2009, all of the funds that the Commonwealth receives from tobacco litigation will be deposited in the General Fund.



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