Sec. 1. 22 MRSA c. 260-A is enacted to read:

CHAPTER 260-A

TRUST FUND FOR A HEALTHY MAINE

§1508.__Trust Fund for a Healthy Maine established

1.__Fund established.__The Trust Fund for a Healthy Maine, referred to in this section as the "fund," is established as an other special revenue nonlapsing account to be used to promote the health and well-being of the citizens of the State.

2.__Sources of fund.__The Treasurer of State shall credit to the fund:

A.__All money received by the State in settlement of or in relation to the lawsuit State of Maine v. Philip Morris et al.,__Kennebec County Superior Court, Docket No. CV-97-134;

B.__Money from any other source, whether public or private, designated for deposit into or credit to the fund; and

C.__Interest earned on balances in the fund.

3.__Allocations; amounts.__For fiscal year 2000-01 and thereafter, the Legislature shall allocate no more than 90% of the amount in the fund for each fiscal year for the purposes specified in subsection 4, the remaining amount to be held in trust in the fund as a contingency reserve.__The Legislature may, under extraordinary circumstances, allocate funds from the contingency reserve for the purposes specified in subsection 4.

4.__Purposes.__Allocations under subsection 3 are limited to the following purposes:

A.__Smoking cessation and education with emphasis on reducing smoking among the children of the State;

B.__Children's early care and education, including prenatal care and child care and education for children up to 6 years of age;

C.__Health insurance, which may include public, private or public-private partnerships, with emphasis on children's health insurance;

D.__Low-cost prescription drugs for the elderly; and