Sec. 1. 22 MRSA c. 102, as enacted by PL 1997, c. 560, Pt. D, §2, is amended by repealing the chapter headnote and enacting in its place the following:

CHAPTER 102

TOBACCO AND HEALTH PROTECTION

Sec. 2. 22 MRSA §273 is enacted to read:

§273.__Tobacco Settlement Dedicated Fund

The Tobacco Settlement Dedicated Fund, referred to in this section as the "fund," is established to receive all revenue from any settlement of pending or potential legal action against tobacco manufacturers brought by the State.

1.__Uses.__Revenue to the fund may be used only for the purposes listed in this subsection:

A.__Smoking cessation public education, seminars, treatment clinics and costs;

B.__Expansion of the elderly low-cost drug program under section 254 to cover health care expenses for smoking- related illness and disease;

C.__Health care coverage for persons who are unable to afford coverage; and

D.__Payment of health care costs for persons who use tobacco products.

2.__Dedicated fund.__The fund is a special, dedicated, nonlapsing fund and any interest generated by the fund is credited to the fund.__The department shall administer the fund.

3.__Limitation.__Expenditure of funds is limited to 3/4 of the revenue deposited into the fund each year.__Funds in excess of the 3/4 limitation may be approved for expenditure by vote of 3/4 of the members of the Senate and the House of Representatives.

SUMMARY

This bill creates the Tobacco Settlement Dedicated Fund to receive revenue from the settlement of litigation between the State and the tobacco manufacturers. The fund may be used for