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        PRIOR PRINTER'S NO. 626                       PRINTER'S NO. 1154

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE RESOLUTION

No. 41 Session of 1999


        INTRODUCED BY ARMSTRONG, FLICK, HUTCHINSON, BAKER, BUTKOVITZ,
           MELIO, FORCIER, STABACK, BARD, BENNINGHOFF, BIRMELIN, CLYMER,
           DAILEY, DALLY, DRUCE, EGOLF, FICHTER, HABAY, HARHART,
           HENNESSEY, HERSHEY, JAMES, KENNEY, LAUGHLIN, LEH, MAHER,
           MAJOR, MARSICO, McNAUGHTON, MICOZZIE, S. MILLER, ORIE, PESCI,
           PIPPY, ROBERTS, ROHRER, ROSS, RUBLEY, SATHER, SAYLOR,
           SCHRODER, SEMMEL, SEYFERT, STAIRS, WILT, WRIGHT, YOUNGBLOOD,
           ZIMMERMAN AND GLADECK, FEBRUARY 17, 1999

        AS REPORTED FROM COMMITTEE ON INTERGOVERNMENTAL AFFAIRS, HOUSE
           OF REPRESENTATIVES, AS AMENDED, MARCH 22, 1999

                                  A RESOLUTION

     1  Memorializing the members of Congress from Pennsylvania to
     2     support and pass legislation protecting the states from
     3     Federal seizure of tobacco settlement funds by the Secretary
     4     of Health and Human Services of the United States as an
     5     overpayment under the Federal Medicaid program.

     6     WHEREAS, In 1994 the states initiated the first lawsuits
     7  based on violations of state law by the tobacco industry; and
     8     WHEREAS, The states, through leadership and years of
     9  commitment to pursuing lawsuits, achieved a comprehensive
    10  settlement with the tobacco industry; and
    11     WHEREAS, After bearing all of the risks and expenses in the
    12  negotiations and litigation necessary to proceed with their
    13  lawsuit, a settlement was won by the states without any
    14  assistance from the Congress of the United States or the Federal
    15  Government; and
    16     WHEREAS, On November 23, 1998, the states' Attorneys General

     1  and the tobacco companies announced a two-prong agreement
     2  focusing on advertising, marketing and lobbying and on monetary
     3  payments which the companies will make to the states; and
     4     WHEREAS, The states' Attorneys General carefully crafted the
     5  tobacco agreement to reflect only state costs; and
     6     WHEREAS, Medicaid costs were neither a major issue in
     7  negotiating the settlement nor an item mentioned in the final
     8  agreement; and
     9     WHEREAS, The Federal Government is not entitled to take away
    10  from the states any of the funds negotiated on their behalf as a
    11  result of state lawsuits; and
    12     WHEREAS, The Federal Government can initiate its own lawsuit
    13  or settlement with the tobacco industry; and
    14     WHEREAS, The states are entitled to all of the funds awarded
    15  to them in the tobacco settlement agreement without Federal
    16  seizure; therefore be it
    17     RESOLVED, That the House of Representatives of the
    18  Commonwealth of Pennsylvania memorialize the Pennsylvania
    19  congressional delegation to support and pass legislation
    20  protecting the states from Federal seizure of tobacco settlement
    21  funds by the Secretary of Health and Human Services of the
    22  United States as an overpayment under the Federal Medicaid
    23  program by amending section 1903(d)(3) of the Social Security
    24  Act (49 Stat. 620, 42 U.S.C. § 1396b(d)(3)), SPECIFICALLY         <--
    25  INCLUDING S.346 (105TH CONGRESS) AND H.R.351 (105TH CONGRESS);
    26  and be it further
    27     RESOLVED, That copies of this resolution be transmitted to
    28  the presiding officers of each house of Congress and to each
    29  member of Congress from Pennsylvania.

    B10L82RLE/19990H0041R1154        - 2 -