Sec. 1. 5 MRSA §12004-F, sub-§18 is enacted to read:

18.__Maine Tobacco Legislative 30-A MRSA__6025

Endowment Fund Board of Per Diem

Trustees

Sec. 2. 30-A MRSA §6025 is enacted to read:

§6025.__Maine Tobacco Endowment Fund

1.__Fund created.__The Maine Tobacco Endowment Fund, referred to in this section as the "fund," is created.__The fund must be held separate and apart from all other money, funds and accounts.__ Eligible investment earnings credited to the assets of the fund become part of the assets of the fund.__Any balance remaining in the fund at the end of any year must be carried forward for the next fiscal year.

2.__Sources of money.__All proceeds the State receives from the settlement agreement entered into on November 16, 1998 by the State and leading United States tobacco product manufacturers and any other related settlement with or proceeds from tobacco product manufacturers must be deposited into the fund.

3.__Allocation of fund.__The realized net appreciation in the fair value of the assets of the fund over the historic dollar value of the fund must be applied to the following programs:

A.__The Healthy Start Program for Maine operated by the Bureau of Health;

B.__The Partnership for a Tobacco-Free Maine operated by the Tobacco Prevention and Control Program of the Bureau of Health; and

C.__The elderly low-cost drug program.

4.__Board of trustees.__The Maine Tobacco Endowment Fund Board of Trustees, established in Title 5, section 12004-F, subsection 18, referred to in this section as the "board," manages the fund in conformance with subsection 3.__The board consists of 9 members who represent or have an interest in anti-tobacco, family, children, elderly or general health issues and who are appointed as follows: