SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - State Finance and Procurement

7-317.

(A) THERE IS A CIGARETTE RESTITUTION FUND.

(B) (1) THE FUND IS A CONTINUING, NONLAPSING FUND THAT IS NOT
SUBJECT TO THE PROVISIONS OF § 7-302 OF THIS SUBTITLE.

(2) THERE SHALL BE CREDITED TO THE FUND ALL REVENUES
CONSISTING OF FUNDS RECEIVED BY THE STATE FROM ANY SOURCE AS A DIRECT OR
INDIRECT RESULT OF RESULTING, DIRECTLY OR INDIRECTLY, FROM ANY JUDGMENT
AGAINST OR SETTLEMENT WITH TOBACCO PRODUCT MANUFACTURERS, TOBACCO
RESEARCH ASSOCIATIONS, OR ANY OTHER PERSON IN THE TOBACCO INDUSTRY
RELATING TO LITIGATION, ADMINISTRATIVE PROCEEDINGS, OR ANY OTHER CLAIMS
MADE OR PROSECUTED BY THE STATE TO RECOVER DAMAGES FOR VIOLATIONS OF
STATE LAW.

(C) THE TREASURER SHALL:

(1) INVEST AND REINVEST THE FUND IN THE SAME MANNER AS OTHER
STATE FUNDS; AND

(2) CREDIT ANY INVESTMENT EARNINGS TO THE FUND.

(D) EXPENDITURES FROM THE FUND SHALL BE MADE BY AN APPROPRIATION
IN THE ANNUAL STATE BUDGET.

(E) (1) THE FUND SHALL BE EXPENDED SUBJECT TO ANY RESTRICTIONS ON
ITS USE OR OTHER LIMITATIONS ON ITS ALLOCATION THAT ARE:

(I) EXPRESSLY PROVIDED BY STATUTE;

(II) REQUIRED AS A CONDITION OF THE ACCEPTANCE OF FUNDS;

OR

(III) DETERMINED TO BE NECESSARY TO AVOID RECOUPMENT BY
THE FEDERAL GOVERNMENT OF MONEY PAID TO THE FUND.

(2) DISBURSEMENTS FROM THE FUND TO PROGRAMS FUNDED BY THE
STATE OR WITH FEDERAL FUNDS ADMINISTERED BY THE STATE SHALL BE USED
SOLELY TO SUPPLEMENT, AND NOT TO SUPPLANT, FUNDS OTHERWISE AVAILABLE
FOR SUCH THE PROGRAMS UNDER FEDERAL OR STATE LAW AS PROVIDED IN THIS
SECTION.

(F) (1) ON OR BEFORE OCTOBER 1 OF EACH YEAR, THE LEGISLATIVE POLICY
COMMITTEE SHALL:

(I) ASSESS AND DETERMINE THE RESPECTIVE NEEDS OF THE
RESIDENTS OF THE STATE AND DEVELOP RECOMMENDATIONS FOR THE