CHAPTER 173
(House Bill 751)

AN ACT concerning 

Cigarette Restitution Fund

FOR the purpose of establishing a Cigarette Restitution Fund; providing for the
distribution of certain revenues to the Fund; providing for expenditures from
the Fund by appropriation; requiring the Legislative Policy Committee to make
certain determinations; requiring the Legislative Policy Committee to submit
certain budget recommendations to the Governor; prohibiting the Fund from
being expended in violation of certain restrictions or limitations; requiring the
Fund to be expended for certain purposes; requiring that priority be given to
certain purposes; providing that disbursements from the Fund to certain
programs be used in a certain manner; authorizing certain funds to be expended
for any legal purpose; requiring the Governor to prepare a certain plan;
requiring the Governor to submit a certain plan to the General Assembly by a
certain date; requiring the Governor to include certain information in the
annual State budget submission; requiring the Governor to report certain
information; providing that this Act applies to certain funds estimated in a
certain State budget; and generally relating to the Cigarette Restitution Fund.

BY adding to

Article - State Finance and Procurement
Section 7-317

Annotated Code of Maryland

(1995 Replacement Volume and 1998 Supplement)

Preamble

WHEREAS, The State of Maryland has agreed to the settlement of litigation
against tobacco manufacturers; and

WHEREAS, The basis of the tobacco settlement is injury to State finances
caused by smoking-related illnesses of Maryland citizens; and

WHEREAS, The federal government may seek recoupment of a portion of the
tobacco settlement revenues if those revenues are not used for certain purposes; and

WHEREAS, African American publications contain approximately 12% more
cigarette advertising than other widespread publications and the density of tobacco
billboard advertising is consistently highest in African American communities; and

WHEREAS, The General Assembly finds it is necessary to establish a process to
account for and allocate the tobacco settlement funds in a manner that meets critical
needs and retains State control of the funds; now, therefore,