[Congressional Record Volume 145, Number 34 (Thursday, March 4, 1999)]
[Senate]
[Page S2342]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        TOBACCO SETTLEMENT FUNDS

 Mr. LEVIN. Mr. President, today I rise to speak to S. 346, 
legislation introduced by Senators Bob Graham (D-Florida) and Kay 
Bailey Hutchinson (R-Texas), which provides that the federal money 
obtained by the states in the tobacco settlements remains in the hands 
of the states.
  Let me briefly review the history of why we are here today discussing 
tobacco recoupment. On November 23, 1998, 46 states, including my own 
state of Michigan, reached a $206 billion settlement with the major 
tobacco manufacturers. Michigan's share of the settlement is 
approximately $8.2 billion ($300 million per year over 25 years). 
States that entered into the settlement have begun to plan for the 
allocation of funds received under those agreements.
  This settlement was the result of a great undertaking by the states. 
Over the last decade, state governments initiated lawsuits against the 
tobacco industry, asserting a variety of claims, including the 
violation of consumer fraud and other state consumer protection laws. 
Several state lawsuits did not include any claims for reimbursement of 
tobacco related health costs paid under the Medicaid program. Some 
states, such as Michigan, included Medicaid recovery as a part of its 
claim.
  The Department of HHS claims a portion of the settlement represented 
by reimbursement of Medicaid costs it funded. However, because there 
were multiple bases for the state claims against the tobacco companies 
and because it would be difficult to accurately assess which portion of 
the states' settlement funds represents Medicaid reimbursement. I will 
support an amendment to this bill which will keep in the states any so 
called ``federal share'' funds if spent by the states on a variety of 
health and education related activities.
  It is with the preceding in mind that I have joined on as a co-
sponsor of S. 346. I urge the passage of S. 346, with an amendment 
along the lines described. This will hopefully expedite the process of 
these funds being used in a responsible and healthy manner.

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