[Congressional Record Volume 145, Number 20 (Thursday, February 4, 1999)]
[Senate]
[Page S1286]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               HUTCHISON/GRAHAM STATE TOBACCO SETTLEMENT

 Mr. MACK. Mr. President, I rise today in support of S. 346, a 
bill to amend title XIX of the Social Security Act to prohibit the 
recoupment of funds recovered by states from one or more tobacco 
manufacturers. Starting in 1989, several states filed lawsuits against 
tobacco companies to recover the costs of smoking related illnesses 
borne by states. The lawsuits led to final settlements between each 
state and the tobacco industry.
  Now, after providing no assistance to states in their legal battles, 
the Administration, through the Health Care Financing Administration, 
is attempting to claim a portion of this money. It is my opinion that 
this money belongs to the individual states, and should be spent as 
each state sees fit. This legislation accomplishes exactly that goal.
  The Health Care Financing Administration's pursuit of these monies 
also could jeopardize state programs all over the country. In Florida, 
Governor Jeb Bush announced an endowment, funded by tobacco monies, to 
insure the financial health of vital programs for children and seniors. 
The endowment fund is named in honor of the late Governor Lawton 
Chiles, who played a key role in obtaining the tobacco settlement for 
the people of Florida. Other programs, funded by the settlement, have 
already been put in place in Florida, and would be jeopardized if the 
funds were suddenly not available.
  Additionally, the Health Care Financing Administration's plan to 
obtain these funds by witholding federal Medicaid payments to the 
states could very well affect the states' ability to provide much 
needed care for the millions of Americans who depend on Medicaid.
  The Administration's attempt to dictate how the money should be spent 
demonstrates a disregard for state budgeting process. I hope that my 
colleagues will support this bi-partisan bill that protects state 
tobacco settlements from federal recoupment.

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