article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Children's Smoking Prevention, Health, and Learning Trust Fund Act of 1999''. SEC. 2. AUTHORITY TO WAIVE RECOUPMENT UNDER THE MEDICAID PROGRAM OF TOBACCO-RELATED FUNDS. (a) In General.--Section 1903(d)(3) of the Social Security Act (42 U.S.C. 1396b(d)(3)) is amended-- (1) by inserting ``(A)'' before ``The''; and (2) by adding at the end the following: ``(B) Subparagraph (A) and paragraph (2)(B) shall not apply to any amount recovered or paid to a State as part of the comprehensive settlement of November 1998 between manufacturers of tobacco products (as defined in section 5702(d) of the Internal Revenue Code of 1986) and States, or as part of any individual State settlement or judgment reached in litigation initiated or pursued by a State against one or more such manufacturers, if the Secretary finds that the following conditions are met: ``(i) Subject to subparagraph (C), with respect to any fiscal year, the State demonstrates, through a plan submitted to, and approved by, the Secretary, that 50 percent of amounts so recovered or paid (in this subparagraph referred to as the `Federal share') during the fiscal year shall be expended consistent with the following: ``(I) At least 35 percent of the Federal share shall be expended on one or more of the tobacco use prevention programs described in subparagraph (D). ``(II) Subject to subparagraph (F), the remainder of the Federal share (determined after the application of subclause (I)) shall be expended on one or more of the health care and early learning programs described in subparagraph (E). ``(ii) With respect to any fiscal year-- ``(I) the level of funds expended by the State (determined without regard to any portion of the Federal share expended by the State) for any program on which a portion of the Federal share is to be expended is not less than the level of funds expended by the State during the most recent State fiscal year ending before the date on which the State first recovered or received any funds pursuant to a settlement or judgment described in this subparagraph; and ``(II) an amount equal to the Federal share is used to supplement and not supplant the level of funds expended by the State for any such program during such State fiscal year. ``(iii) The State files with the Secretary an annual report that, with respect to a fiscal year-- ``(I) details how the Federal share of the amounts so recovered or paid has been spent consistent with clause (i); and ``(II) identifies, with respect to each program funded in accordance with clause (i) (and, if applicable, subparagraph (F))-- ``(aa) the amount of additional expenditures made for each such program; ``(bb) the number of additional individuals participating in the program and the nature of the services provided; and ``(cc) such other information as the Secretary determines is necessary. ``(C) If any State can demonstrate to the Secretary that the Federal share of the total amount expended by the State under this title to treat tobacco-induced illnesses is less than 50 percent of the total amount recovered or paid to the State as a result of a settlement or judgment described in subparagraph (B), clause (i) of that subparagraph shall be applied by substituting for `50 percent' the percentage so demonstrated by the State. ``(D) For purposes of subparagraph (B)(i)(I), tobacco use prevention programs described in this subparagraph are the following: ``(i) Counter-advertising programs to discourage tobacco use. ``(ii) Smoking cessation programs. ``(iii) School-based tobacco use prevention programs. ``(iv) Community-based tobacco use prevention programs. ``(v) Programs to enforce prohibitions on the sale of tobacco products to youth. ``(vi) Other State-initiated programs to deter tobacco use and assist individuals suffering from nicotine addiction or smoking-induced disease. ``(E) For purposes of subparagraph (B)(i)(II), health care and early learning programs described in this subparagraph are the following: ``(i) Community health centers that receive funds under section 330 of the Public Health Service Act (42 U.S.C. 254b). ``(ii) Prescription drug assistance programs to help senior citizens pay for pharmaceuticals. ``(iii) The State Children's Health Insurance Program established under title XXI. ``(iv) Maternal and child health services provided under title V. ``(v) The Child Care and Development Block Grant Act of 1990 (42 U.S.C. (42 U.S.C. 9858 et seq.). ``(vi) The Safe and Drug-Free Schools and Communities Program under title IV of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7101 et seq.). ``(vii) State-initiated programs approved by the Secretary to-- ``(I) make health insurance available to the uninsured; ``(II) provide health services to the underserved or uninsured; ``(III) reduce public health risks; or ``(IV) support medical research and expand access to clinical trials for individuals with serious illnesses. ``(viii) State-initiated programs approved by the Secretary to-- ``(I) award grants to communities for the creation, improvement, and expansion of early childhood education opportunities; or ``(II) serve the educational and developmental needs of children 5 years of age or younger. ``(F) In the case of any State that is a tobacco-growing State, the State may use up to 25 percent of the remainder of the Federal share (determined after the application of subparagraph (B)(i)(I)) for programs to assist tobacco farmers and tobacco workers who have sustained an adverse financial impact as a direct result of a settlement or judgment described in subparagraph (B). ``(G) Amounts provided to a State under any provision of law referred to in subparagraph (D) or (E) shall not be reduced solely as a result of the availability of funds recovered or received pursuant to a settlement or judgment described in subparagraph (B). ``(H) If the Secretary determines that amounts described in subparagraph (B)(i) are not being spent in accordance with subparagraphs (D), (E), and, as applicable, (C) and (F), or that a State has failed to comply with the requirements of clauses (ii) and (iii) of subparagraph (B), subparagraph (A) and paragraph (2)(B) shall apply to such amounts and the Secretary shall take appropriate action to offset such amounts from the amounts otherwise paid to the State under this title.''. (b) Prohibition on Payment for Administrative Expenses Incurred in Pursuing Tobacco Litigation.--Section 1903(i) of the Social Security Act (42 U.S.C. 1396b(i)) is amended-- (1) in paragraph (18), by striking the period and inserting ``; or''; and (2) by inserting after paragraph (18) the following: ``(19) with respect to any amount expended on administrative costs to initiate or pursue litigation against one or more manufacturers of tobacco products (as defined in section 5702(d) of the Internal Revenue Code of 1986).''. (c) Effective Date.--The amendments made by this section apply to amounts recovered or paid to a State before, on, or after the date of enactment of this Act.
summary: Provides that: (1) if the Secretary determines that recovered amounts are not being spent accordingly the Secretary shall take appropriate action to offset such amounts from the amounts otherwise paid to the State under Medicaid; and (2) payment for administrative expenses incurred in pursuing tobacco litigation is prohibited. Makes this Act effective with regard to amounts recovered or paid to a State before, on, or after the enactment of this Act.