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Item 302 #3c

Health And Human Resources
FY 06-07
FY 07-08
Department Of Medical Assistance Services
$0
$0
($626,230)
$626,230
GF
NGF

Language:
Page 133, line 12, after "Z.", insert "1."
Page 133, line 14, strike "291,435,579" and insert "292,061,809".
Page 133, after line 15, insert:
"2. Notwithstanding any other provision of law, the State Comptroller shall deposit 50 percent of the Commonwealth's allocation of the Strategic Contribution Fund payment pursuant to the Master Settlement Agreement with tobacco product manufacturers to the Virginia Health Care Fund."

Explanation:
(This amendment directs 50 percent of new revenues from the Master Settlement Agreement with tobacco product manufacturers to the Virginia Health Care Fund in fiscal year 2008. Beginning in April 2008, the Master Settlement Agreement requires that a Strategic Contribution Fund payment be made to states from 2008 through 2017. These Strategic Contribution Fund payments are intended to reflect the level of the contribution each state made toward final resolution of their lawsuit against the tobacco companies. Virginia's payments are estimated to be $6.3 million

annually. Under current law, revenues from the Master Settlement Agreement are distributed as follows: 40 percent to the Virginia Health Care Fund to offset general fund costs in the Medicaid program, 10 percent to the Virginia Tobacco Settlement Fund (VTSF) for tobacco prevention activities, and 50 percent to the Tobacco Indemnification and Community Revitalization (TICR) Fund. Instead, 50 percent of this payment will be made to the Virginia Health Care Fund, reducing the general fund share of Medicaid by $626,230 in FY 2008. Budget language is modified to reflect additional revenues to the Virginia Health Care Fund representing the 10 percent share of the new stream of payments that would otherwise flow to the VTSF.)

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