44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

REQUESTING THE UNITED STATES CONGRESS TO ENACT LEGISLATION AMENDING THE SOCIAL SECURITY ACT TO PROHIBIT RECOUPMENT BY THE FEDERAL GOVERNMENT OF STATE TOBACCO SETTLEMENT FUNDS.

WHEREAS, on November 23, 1998, representatives from forty-six states signed a settlement agreement with the five largest tobacco manufacturers; and

WHEREAS, the attorneys general master tobacco settlement agreement culminated legal action that began in 1994 when states began filing lawsuits against the tobacco industry; and

WHEREAS, New Mexico and the other states that signed the master tobacco settlement agreement are currently making their initial decisions regarding the most responsible ways and means to use the settlement funds; and

WHEREAS, under the terms of the agreement, tobacco manufacturers will pay two hundred six billion dollars ($206,000,000,000) over the next twenty-five years to the respective states, and New Mexico is projected to receive about one billion one hundred seventy million dollars ($1,170,000,000) of that amount; and

WHEREAS, because many state lawsuits sought to recover medicaid funds spent to treat illnesses caused by tobacco use, the health care financing administration contends that it is authorized and obligated under the Social Security Act to collect its share of any tobacco settlement funds attributable to medicaid; and

WHEREAS, the master tobacco settlement agreement does not address the medicaid recoupment issue, and thus the Social Security Act must be amended to resolve the recoupment issue in favor of the respective states; and

WHEREAS, as we move toward final approval of the master tobacco settlement agreement, it is imperative that state sovereignty be preserved;

NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the United States congress enact legislation amending the Social Security Act to prohibit recoupment by the federal government of state tobacco settlement funds; and

BE IT FURTHER RESOLVED that state legislatures have complete autonomy over the appropriation and expenditure of state tobacco settlement funds, and that the federal government not earmark or impose any other restrictions on the respective states' use of state tobacco settlement funds; and

BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the president of the United States of America, the president and the secretary of the United States senate, the speaker and the clerk of the United States house of representatives and each member of the New Mexico congressional delegation.