I
106TH CONGRESS
1ST SESSION
H. R. 1232
To amend title XIX of the Social Security Act to permit the Secretary
of Health and Human Services to waive recoupment of Federal govern-
ment Medicaid claims to tobacco-related State settlements if the State
uses a portion of those funds for programs to reduce the use of tobacco
products and to assist in the economic diversification of tobacco farming
communities.
IN THE HOUSE OF REPRESENTATIVES
MARCH 23, 1999
Mr. HANSEN (for himself and Mr. MEEHAN) introduced the following bill;
which was referred to the Committee on Commerce
A BILL
To amend title XIX of the Social Security Act to permit
the Secretary of Health and Human Services to waive
recoupment of Federal government Medicaid claims to
tobacco-related State settlements if the State uses a por-
tion of those funds for programs to reduce the use of
tobacco products and to assist in the economic diver-
sification of tobacco farming communities.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. PERMITTING WAIVER OF RECOUPMENT OF
MEDICAID TOBACCO-RELATED RECOVERIES
IF RECOVERIES USED TO REDUCE SMOKING
AND ASSIST IN ECONOMIC DIVERSIFICATION
OF TOBACCO FARMING COMMUNITIES.
(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 a settlement or judgment reached in litigation initi-
ated or pursued by a State against one or more manufac-
turers of tobacco products, as defined in section 5702(d)
of the Internal Revenue Code of 1986, if (and to the ex-
tent that) the Secretary finds that following conditions are
met:
‘‘(i) The Governor or Chief Executive Officer of
the State has filed with the Secretary a plan which
specifically outlines how at least 25 percent of such
amounts, recovered in any fiscal year, will be spent
on efforts—
‘‘(I) to reduce the use of tobacco products
using methods that have been shown to be ef-
fective, such as tobacco use cessation programs,
enforcement of laws relating to tobacco prod-
ucts, community-based programs to discourage
the use of tobacco products, and school-based
and child-oriented education programs to dis-
courage the use of tobacco products, and for
ongoing evaluations of these programs;
‘‘(II) to fund research necessary to evalu-
ate progress in reducing tobacco use and to de-
termine the effectiveness of programs to pre-
vent tobacco addiction, including surveillance
and epidemiology research related to tobacco;
‘‘(III) to fund State-wide awareness and
advertising efforts to discourage tobacco use;
and
‘‘(IV) to assist in economic development ef-
forts designed to aid tobacco farmers and com-
munities as they transition to a more broadly
diversified economy.
‘‘(ii) All efforts under subclauses (I) through
(III) of clause (i) shall take into account the needs
of minority populations and other high risk groups
who have a greater threat of exposure to tobacco
products and advertising.
‘‘(iii) All such amounts spent under clause (i)
will be spent only in a manner that supplements
(and does not supplant) funds previously being spent
by the State (or local governments in the State) for
such or similar programs or activities.
‘‘(iv) Before the beginning of each fiscal year,
the Governor or Chief Executive Officer of the State
files with the Secretary a report which details how
the Federal share of the amounts so recovered have
been spent consistent with the plan described in
clause (i).’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) apply to amounts recovered or paid to a
State before, on, or after the date of enactment of this
Act.
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