OPLA~Notes
Nonpartisan
Quarterly Newsletter
* Source: National Conference of State Legislatures, and the National Association of Attorneys General
Maine’s Share of the Tobacco Settlement
In order for the settling states to receive their portion of the settlement funds, the states must achieve state
specific finality by December 31, 2001. State-specific finality is achieved when state courts officially approve
the settlement by signing a consent decree. Maine achieved state-specific finality when the Superior Court approved
the settlement agreement by docket entry on November 9, 1998 in State of Maine v. Philip Morris et. al., Kennebec
County Superior, CV-97-134. In order for states to ensure that they receive the full compensation from the settlement,
the MSA requires that the settling states enact a model statute.
This model statute is designed to eliminate unfair profit advantages in the tobacco market by manufacturers who
have not participated in the settlement. The model statute would give states the authority to require non-participating
manufacturers (NPMs) to pay into an escrow fund on a yearly basis. This fund would ensure that the state would
have money available to pay for any future claims brought against the NPMs, particularly if the NPMs are found
to be immune from future claims against them. If there is no model statute in place, payments to the states can
be altered should the participating manufacturers lose a certain percentage of their share of the market due specifically
to the settlement. Maine’s model statute was enacted in the FY 1999-2000 Part II Budget, Public Law 1999, Chapter
401, Part U, under the Tobacco Manufacturer’s Act.
Figures coming from the Maine State Treasurer’s Office indicate that Maine stands to receive an estimated $86,850,082
in initial payments.** Initial payments are subject to fewer adjustments (volume adjustment, nonsettling state’s
reduction, and miscalculated/disputed payment offset) with payments being divided yearly from January 1999 to 2003
(see Chart #2). As a result of Maine achieving state-specific finality, on January 4, 1999 an initial payment
of $18.4 million within the national escrow account was designated for Maine. Now that an independent auditor
has been selected to oversee the process of dispersing the settlement funds, the $18.4 million (along with its
investment earnings) were deposited into a Maine State Escrow Fund on June 4, 1999. Payments will be released
to State Treasurers nationwide by June 30, 2000,even if some states have not achieved finality.
Annual payments to Maine, which will be subject to more adjustments than initial payments, will total an estimated
$2,075,001,636 between April 2000 and April 2031 (see also Chart #2). The first annual payment in April of 2000
is estimated to be $27,548,352, and the payments will slowly increase from $41,391,915 in April of 2003, to $57,635,924
in April 2010. Payments to Maine’s portion of the Strategic Contribution Fund will also be made every April from
2008 to 2017, totaling $124,200,822. These figures, provided by the Maine State Treasurer’s Office, represent
the best estimate of potential settlement payments available at this time. The settlement does not restrict how
Maine uses the funds.
Tobacco Settlement Provisions in the Fiscal Year 1999 - 2000 Budget
The approved Part II Budget (P.L. 1999, C. 401) establishes a “Fund for a Healthy Maine,” in which settlement funds
will be deposited and utilized for health purposes. These health purposes are defined as: smoking prevention and
cessation programs which focus largely on youth, prenatal and young children’s care, child care, health care, prescription
drugs for the elderly and the disabled, dental care, substance abuse, and school health programs and centers.
Ninety percent of all settlement funds will be deposited into this Fund, and the remaining ten percent will be
credited to a “Trust Fund for a Healthy Maine.” The monies placed in the Trust Fund will earn interest and could
potentially be used to fund these various health programs should the income from the settlement end.
** The figures provided by the State Treasurer’s Office have been calculated with adjustments for volume (assuming
Moody’s Forecast), and inflation (a conservative 3 percent).
The Federal Goverment’s Claim to the Settlement Money
There had been some question as to whether or not the federal government would claim a portion of the settlement
funds for Medicaid expenses. The settlement was based on the states’ right to reimbursement of Medicaid expenses
used for the treatment of tobacco-related illnesses. Since the federal government pays, on average nationwide,
57 percent of Medicaid expenditures, the U.S. Department of Health and Human Services and the National Health Care
Finance Authority could assert entitlement under Medicaid law. However, on May 20, 1999, the Emergency Supplemental
Bill for fiscal year 1999 was passed by the U.S. House and Senate, stating that the federal government would not
lay claim to the settlement funds.
Maine Passes Smoking Ban in Restaurants
On April 6, 1999, Governor Angus King signed into law L.D. 1349, Public Law Chapter 54, “An Act to Protect Citizens
from the Detrimental Effects of Tobacco.” This law prohibits smoking in all Maine restaurants, excluding bars
and taverns, starting on September 18, 1999. The bill was passed in response to a rise in public awareness about
the health risks associated with environmental tobacco smoke (ETS), and concern for those whose occupation put
them in daily contact with ETS. ETS is classified by the U.S. Environmental Protection Agency as a Group A human
carcinogen, causing 3,000 lung cancer deaths a year in non-smokers. Non-smokers who are exposed to ETS on a regular
basis are at risk for developing a range of health problems, including cardiovascular disease, lung cancer and
increased respiratory problems. Maine joins four other states in banning restaurant smoking (Vermont, Maryland,
Utah, California), and many similar restrictions have begun at the local level in other states. In Maine, the
communities of Portland and Sabattus both enacted similar ordinances banning smoking in restaurants prior to the
enactment of L.D. 1349.
The Regulation of the Tobacco Industry: How Far Can the FDA Go?
With what the Food and Drug Administration (FDA) perceived as mounting scientific evidence of the harmful health
effects and addictive properties of tobacco, the FDA decided in 1996 to declare nicotine a drug and began regulating
the sale of tobacco products.
The FDA’s priority in regulating tobacco centered around the prevention of youth addiction and the restriction
of tobacco advertising techniques. Soon after the FDA’s decision was made, its legal authority to regulate the
tobacco industry was challenged.
In 1997, in Coyne Beahm v. FDA, 966 F.Supp. 1374, the U.S. District Court for the Middle District of North Carolina
ruled that nicotine may be regulated as a drug by the FDA but that the FDA did not have the regulatory authority
to determine how the tobacco industry advertised its products. In 1998, a U.S. Court of Appeals for the Fourth
Circuit decided in Brown & Williamson Tobacco Corporation v. FDA, 153 F.3d 155, to overturn the District Court’s
ruling. The Court ruled that the FDA did not have authorization from Congress to regulate tobacco products. The
decision has been appealed by the FDA to the U.S. Supreme Court, which has agreed to hear arguments on this issue
beginning in October of this year.
Maine Ranks:
· 3rd in the nation in home ownership
· 15th in the nation for percentage of legislators who are female (51 women in the Maine State Legislature)
· 47th in the nation for violent crime rates
Have you ever wanted to create your own web page, but did not want to invest the time and money? Below, is a list
of services that will give you FREE Web space, in return for allowing them to display their advertising banners
on your webpage. In some cases, these services will help you publish a Web site even if you have no experience
in writing HTML (the coding language that is used to create Web pages). With many of these services, the only
work on your part is coming up with content ideas for your Web page. The list of possibilities is endless: you
can publish your resume on-line, publish a page devoted to your favorite hobby or cause, create a page devoted
to yourself and your interests, or have a page that displays your family's photos, etc
· Angelfire Communications - Free web space up to 5 MB http://www.angelfire.com
· FortuneCity - Free web space up to 10 MB http://www.fortunecity.com
· Free Sites Network - Free web space up to 20 MB http://www.fsn.net
· GeoCities - Free web space up to 6 MB http://www.geocities.com
· Hypermart - Free web space up to 10 MB http://www.hypermart.net
· The Globe - Free web space up to 6 MB http://www.theglobe.com
· Tripod - Free web space up to 5 MB http://www.tripod.com
· XOOM - Free web space up to 11 MB http://www.xoom.com
Policy and Government
The Center for Policy Alternatives: The Center for Policy Alternatives is a non-profit, non-partisan public
policy and leadership development center devoted to community-based solutions. This site provides policy-related
news, issue analyses, model legislation, and links of interest, including a feature link of the month. CPA also
links elected leaders across the fifty states with private and non-profit sector leaders.
http://www.cfpa.org/
National Archives and Records Administration: This comprehensive governmental site includes access to government documents and library materials, reports, The Federal Register, an on-line exhibition hall featuring historic documents, grant information and technical guidance on archival preservation and management.
http://www.nara.gov/
Thomas: Federal legislation from 1973 to present, as well as links to other governmental information.http://thomas.loc.gov/
Provides links to “hot” topics in government by subject.http://thomas.loc.gov/home/html.arc/hot-subj.html
State News Information Center: This site is provided by the Council of State Governments and offers up to date
information on state legislative actions. http://www.statesnews.org
Maine State Legislature: The State of Maine statutes, including the new laws passed in 1998, are now
available through the Legislature’s homepage. The website also now includes access to current bill text, amendments
and final disposition information.
http://www.maine.gov/legis
Law and Legislative Reference Library: Provides access to URSUS catalog, collections information, reference
information, legislative history instructions and interlibrary loan information, and lists of Justices for the
Maine Supreme Judicial Court and Maine Attorney Generals. The Library's website also includes an in-house index
to NCSL Legisbrief, a two-page issue brief published by the National Conference of State Legislatures (NCSL).
The latest addition to this website is the submittal of research request via e-mail.
http://www.maine.gov/legis/lawlib
Technology
Search Engine Watch: A wide variety of search engine information is offered at this site including
an overview of the major search engines, tutorials on how to use search engines, information on specialty search
services, as well as trivia and interesting facts about search engines. http://www.searchenginewatch.com
News
Internet Press: This site presents links to hundreds of In-ternet news sources, radio and TV stations,
magazines and newswires by region, country or state.
http://www.usatoday.com/
General Interest
Consumer Information Center: This site is provided by the U.S. General Services Administration. The site
offers full text versions of hundreds of federal consumer publications, including information on cars, federal
programs, money, children, small business, education, health, employment and travel.
http://www.pueblo.gsa.gov
Where’s George: Have you ever wonder where that paper money in your pocket has been, or where it will
go next? This website provides a U.S. dollar tracking system. All you need to do is enter the series (year) and
serial number of any US dollar bill, and your current zip code. http://www.wheresgeorge.com
OPLA PUBLICATIONS
· Bill Summaries - Now that the First Regular Session has been completed, the Office of Policy and
Legal Analysis and the Office of Fiscal and Program Review (OFPR) will be preparing summaries of each bill considered
by the joint standing committees this past session. The summaries will include a description of each bill, committee
amendments, floor amendments and the final action taken on each bill. The summaries will be available in the near
future. If you would like a copy of a committee’s bill summaries, other than those for the Appropriations and
Financial Affairs Committee and the Taxation Committee, please contact OPLA at 287-1670 or in Room 101 of the State
House, or download the summaries from the OPLA website at: www.state.me.us/legis/opla
If you would like copies of the bill summaries for the Joint Standing Committee on Appropriations and Financial
Affairs and the Joint Standing Committee on Taxation, please contact the Office of Fiscal and Program Review at
287-1635 or in Room 225 of the State House, or visit OFPR’s website at: www.state.me.us/legis/ofpr
· Study Reports - A listing of study reports of legislative committees and commissions categorized
by year from 1973 on is available from OPLA. For printed copies of any of these reports, please contact the Office
of Policy and Legal Analysis at 13 State House Station, Augusta, Maine 04333 (287-1670) or stop by Rooms 101/107
of the State House. The first copy of a report is free; additional copies are available at a nominal cost. In
addition, many of the legislative studies staffed by OPLA during the 117th and 118th Legislatures are available
on the OPLA website at: http://www.maine.gov/legis/opla
The following is a list of legislative studies approved by the Legislature for this interim. These studies are
the result of legislation considered during the First Regular Session of the 119th Legislature.
| Study Name | Staffing |
| ACF Committee Study - Subcommittee to Review Regulatory Responsibilities of MLURC and DEP | OPLA |
| Blue Ribbon Commission to Establish a Comprehensive Internet Policy | Legislative Council |
| Business Advisory Commission on Quality Care Financing | Department of Economic and Community Development |
| Citizen’s Advisory Committee to Secure the Future of Maine’s Wildlife and Fish | OPLA and Dept. of Inland Fisheries and Wildlife |
| Commission to Encourage Incorporations in Maine | Legislative Council |
| Commission to Examine the Adequacy of Services at the Togus Veterans Administration Medical Center | OPLA |
| Commission to Propose an Alternative Process for the Payment of Forensic Examinations for Sexual Assault Victims | OPLA |
| Commission to Study Bulk Purchasing of Prescription Drugs and Medical Supplies | OPLA |
| Commission to Study Children in Need of Services | Legislative Council |
| Commission to Study the Enhancement of Fire Protection Services Throughout the State | OPLA |
| Commission to Study the Needs and Opportunities Associated with the Production of Salmonid Sport Fish in Maine | Legislative Council |
| Commission to Study Single-Sales Factor Apportionment | OFPR |
| Committee on Sawmill Biomass | State Planning Office |
| Committee Study of the Application of Real Estate Transfer Tax to Corporate Transfers | OFPR |
| Committee to Address the Recognition of the Tribal Government Representatives of Maine’s Native Sovereign Nations in the Legislature | OPLA |
| OPLA Committee to Establish a Memorial Dedicated to the Civilian Conservation Corp. |
State House and Capitol Park Commission |
| Joint Select Committee on the Year 2000 Computer Problem | OPLA |
| Review of Traffic Congestion Including Truck Traffic Along the Route 1 York Corridor | OPLA |
| Select Commission to Study State Participation in Funding Cleanup and Remediation of Uncontrolled Hazardous Substance Sites | OPLA |
| Staff Study of Statutory and Regulatory Changes Regarding Milk and Milk Products | OPLA |
| Staff Study to Examine Utility-related Laws Outside of Title 35-A | OPLA |
| Study of Current Regulations Imposed on Small Businesses to Require Greater Efficiency | Legislative Council |
Study of Standardized Periods of Military Service and Other Matters Related to the Award of State of Maine Veterans’ Benefits |
OPLA |
| Study to Develop Alternative Programs for Violent and Disruptive Students | OPLA |
| Task Force On State Office Building Location and Other State Growth-related Capital Investments | OPLA |
| Task Force to Review the Educational Program and the Governance System of the Governor Baxter School for the Deaf | Legislative Council |
| Task Force to on Early Care and Education | Dept. of Human Services |
| Task Force to Study the Improvement of Public Water Supply Protection | Dept. of Environmental Protection and Dept. of Human Services |
| Task Force to Study the Need for an Agricultural Vitality Zone Program. | OPLA |
| Task Force to Study the Operation and Support for the Board of Environmental Protection | OPLA |