General Laws of Massachusetts - Chapter 29D The Health Care Security Trust - Section 3 Fiduciary responsibility of trust to manage trust fund

Section 3. (a) The trust shall have the fiduciary responsibility to manage the trust fund into which shall be credited (i) any monies received by the commonwealth pursuant to the master settlement agreement in the tobacco action, other than payments for attorneys fees; (ii) for fiscal years 2002, 2003 and 2004, 50 per cent of any monies generated by any other 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 for fiscal year 2005 and thereafter, 70 per cent of any monies generated by any other 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; (iii) any appropriation, grant, gift or other contribution explicitly made to said trust fund; (iv) any income derived from the investment of amounts credited to said trust fund; (v) any monies collected pursuant to sections 63 of chapter 118E; and (vi) any federal reimbursements received pursuant to Title XIX of the Social Security Act and 42 U.S.C. Section 1396b(w), or any successor statutes resulting from MassHealth service expenditures funded by the assessment established pursuant to said sections 63 of said chapter 118E.

(b) Of the annual sums transferred by the comptroller from the Health Care Security Trust Fund to the General Fund pursuant to paragraph (c), 25 per cent shall be dedicated to the purposes of tobacco control.

(c) The comptroller shall promptly certify to the fiscal affairs division, the house and senate committees on ways and means, the joint committee on health care and the advisory committee on health care and tobacco control established pursuant to section 5, the amount and date when any payments are made pursuant to the master settlement agreement in the tobacco action and any other payments are made or credited to said fund.

In fiscal years 2000 and 2001, inclusive, the comptroller shall transfer sums from the Health Care Security Trust Fund to the General Fund in accordance with the following schedule: in fiscal year 2000, the sum of $ 91.2 million, in fiscal year 2001, the sum of $94 million.

In fiscal years 2002, 2003 and 2004, the comptroller shall transfer 50 per cent of the total of all annual payments made pursuant to the master settlement agreement in the tobacco action and received in that fiscal year from the Health Care Security Trust Fund to the Tobacco Settlement Fund; provided that amounts received in any fiscal year as strategic contribution fund payments, pursuant to the master settlement agreement, shall not be transferred to the Tobacco Settlement Fund.

In fiscal years 2005 and thereafter, the comptroller shall transfer 30 per cent of the total of all annual payments made pursuant to the master settlement agreement in the tobacco action and received in that fiscal year from the Health Care Security Trust Fund to the General Fund; provided that amounts received in any fiscal year as strategic contribution fund payments, pursuant to the master settlement agreement, shall not be transferred to the General Fund.

(d) The comptroller shall make all such transfers authorized in this section periodically over the course of the applicable fiscal year as he deems necessary to meet expenditures from said General Fund, but the total of all such transfers shall not be less than the amounts authorized for transfer herein.

(e) Notwithstanding the foregoing, upon receipt of the first payment to the commonwealth pursuant to the master settlement agreement in the tobacco action, the comptroller shall transfer the entire fiscal year 2000 scheduled amount of $91.2 million, as adjusted pursuant to the provisions of paragraph (c), from the Health Care Security Trust Fund to the Tobacco Settlement Fund, which shall be immediately available for expenditure. All further payments made pursuant to the master settlement agreement in the tobacco action received in fiscal year 2000 shall remain in the Health Care Security Trust Fund.

(f) Not later than October 31 of each year, the comptroller shall certify to the trustees, the fiscal affairs division, the house and senate committees on ways and means, the joint committee on health care and the advisory committee on health care and tobacco control the balance in the Health Care Security Trust Fund and the total return generated by the principal of said trust fund during the prior 12 month period ending on June 30. On or before July 1 of each year, for fiscal years 2002, 2003 and 2004 the comptroller shall transfer 50 per cent of said return, as so certified by the comptroller in the previous October, from the Health Care Security Trust to the Tobacco Settlement Fund, which shall be available for expenditure. For fiscal years 2005 and thereafter, the comptroller shall transfer 30 per cent of said return, as so certified by the comptroller in the previous October, from the Health Care Security Trust to the General Fund, which shall be available for expenditure.

(g) Appropriations made by the general court for the purpose of this chapter, and pursuant to the Tobacco Settlement Fund, that remain unexpended at the end of a fiscal year shall be credited to the health related fund from which any such appropriation was made and shall not revert to the general fund.

(h) Nothing in this chapter shall obligate the commonwealth to disburse any funds from said trust in excess of any monies received by the trust pursuant to section 1.

(i) The attorney general shall file a quarterly report with the state comptroller, the state budget director and the house and senate committees on ways and means which shall include, but not be limited to, the following: (a) an updated schedule of payments due the commonwealth pursuant to the master settlement agreement in the tobacco action; (b) an analysis of any imminent factors that may affect the industry’s ability to generate such payments to the commonwealth; (c) a detailed account of the analysis and methodology used to determine the variations associated with said schedule of payments; (d) an explanation of the financial impact that such variations in said schedule of payments shall have upon the amount due to the commonwealth and the industry’s obligation to the commonwealth; and, (e) an itemized account of any and all amendments that have been made to the master settlement agreement.

(j) The comptroller shall transfer, on the first business day of each quarter, the amount determined to be necessary pursuant to sections 25 and 26 of said chapter 118G and any other special law to the Health Care Quality Improvement Trust Fund established by section 2EEE of chapter 29.

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Last modified: September 11, 2015