EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 439 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 and 3 of this act.

1-3 Sec. 2. 1. The trust fund for health programs is hereby created in

1-4 the state treasury to be administered by the state health officer. Upon

1-5 receipt of any money distributed to the State of Nevada as a result of

1-6 settlement agreements in November 1998 with tobacco companies, the

1-7 state treasurer shall deposit an amount equal to 65 percent of the money

1-8 so received into the trust fund for health programs.

1-9 2. The state health officer shall account separately for 77 percent of

1-10 the money received pursuant to subsection 1. Except as otherwise

1-11 provided in subsection 5, the money accounted for separately pursuant to

1-12 this subsection may be used only for:

1-13 (a) Direct health services and long-term care services; and

1-14 (b) Programs designed to prevent or cease smoking and the use of

1-15 drugs or alcohol.

1-16 3. The state health officer shall account separately for 23 percent of

1-17 the money received pursuant to subsection 1. Except as otherwise

1-18 provided in subsection 5, the money accounted for separately pursuant to

2-1 this subsection may be used only for the award of grants to counties

2-2 pursuant to section 3 of this act.

2-3 4. The money in the trust fund must be invested as the money in

2-4 other state funds is invested. The interest and income earned on the

2-5 money in the trust fund must, after deducting any applicable charges, be

2-6 credited to the trust fund. All claims against the trust fund must be paid

2-7 as other claims against the state are paid.

2-8 5. Not more than 2 percent of the money in the trust fund may be

2-9 used to pay the costs of administering the trust fund.

2-10 Sec. 3. 1. A county board of health may apply to the state health

2-11 officer for a grant of money from the account in the trust fund for health

2-12 programs that is maintained pursuant to subsection 3 of section 2 of this

2-13 act. An application must:

2-14 (a) Be submitted on a form provided by the state health officer; and

2-15 (b) Include a description of the local health programs and other

2-16 health-related endeavors for which the grant of money will be used.

2-17 2. If an application is complete, the state health officer shall approve

2-18 the application. The state health officer shall allocate the money that is

2-19 available in the account that is maintained pursuant to subsection 3 of

2-20 section 2 of this act among the counties whose applications have been

2-21 approved in a pro rata amount based on the percentage of residents in

2-22 each such county.

2-23 3. A county board of health that receives a grant of money pursuant

2-24 to this section shall use the money only for the support of local health

2-25 programs and other health-related endeavors. A county board of health

2-26 shall not use the money to supplant or cause to be reduced any other

2-27 source of funding for local health programs and other health-related

2-28 endeavors.

2-43 fund must be used only for the award of scholarships to eligible students

3-1 pursuant to sections 5 and 6 of this act. The state treasurer shall, upon

3-2 notification from the interim finance committee pursuant to section 7 of

3-3 this act, disburse to the board of regents money from the trust fund in an

3-4 amount specified by the interim finance committee.

3-5 5. Not more than 2 percent of the money in the trust fund may be used

3-6 to pay the costs of administering the trust fund.

3-7 Sec. 5. 1. Except as otherwise provided in subsection 3, a student

3-8 may apply to the board of regents for a scholarship from the Nevada

3-9 scholarship trust fund if:

3-10 (a) He has been a resident of this state for at least 2 years before he

3-11 applies for a scholarship;

3-12 (b) He graduated from a public or private high school in this state;

3-13 (c) He is enrolled in at least 12 semester credit hours in a university or

3-14 community college;

3-15 (d) Except as otherwise provided in paragraph (e), he is:

3-16 (1) Pursuing a career in education or health care; or

3-17 (2) Demonstrates to the satisfaction of the board of regents that he

3-18 participated actively in anti-smoking, anti-drug or anti-alcohol programs or

3-19 other health care programs in high school;

3-20 (e) For a student who does not meet the requirements of paragraph (d),

3-21 he maintained a 3.0 grade-point average in high school, on a 4.0 grading

3-22 scale, or graduated from high school in the top 20 percent of his class; and

3-23 (f) He meets the criteria for eligibility established by the board of

3-24 regents pursuant to subsection 2, including, without limitation, the criteria

3-25 for financial need.

3-26 2. The board of regents shall establish criteria for the eligibility of a

3-27 student for a scholarship, including, without limitation, the financial need

3-28 of the student. The criteria must include a threshold level of income for

3-29 eligibility to ensure that students from families of low income and middle

3-30 income are the only recipients of scholarships. If a student is from a family

3-31 with an income above the threshold, the student is not eligible for a

3-32 scholarship. In addition, a student is not eligible for a scholarship if, in the

3-33 determination of the board of regents, he has sufficient financial resources

3-34 and aid to pay for the costs of attending a university or community college,

3-35 as applicable.

3-36 3. The board of regents shall solicit public comment at public hearings

3-37 and establish criteria for the eligibility of students who do not meet the

3-38 requirements of subsection 1, including, without limitation, students:

3-39 (a) Who received certificates of educational equivalence for achieving a

3-40 passing score on tests of general educational development.

3-41 (b) Who received instruction at home pursuant to a course of study

3-42 approved by the state board of education.

3-43 (c) Who dropped out of high school.

4-1 (d) Who did not enroll in college directly after graduating from high

4-2 school.

4-3 Sec. 6. 1. Within the limits of money available in the trust fund, a

4-4 student who is eligible for a scholarship is entitled to receive:

4-5 (a) If he is enrolled in a community college:

4-6 (1) Six hundred twenty-five dollars per semester; or

4-7 (2) The amount of money that is necessary for the student to pay the

4-8 costs of attending the community college during the semester that are not

4-9 otherwise satisfied by other sources of money available to the student,

4-10 whichever is less.

4-11 (b) If he is enrolled in a university:

4-12 (1) One thousand two hundred fifty dollars per semester; or

4-13 (2) The amount of money that is necessary for the student to pay the

4-14 costs of attending the university during the semester that are not otherwise

4-15 satisfied by other sources of money available to the student,

4-16 whichever is less.

4-17 2. Each such scholarship must be awarded per semester. A student is

4-18 not entitled to receive a scholarship for more than eight semesters.

4-19 3. Priority of funding in the award of scholarships must be given to an

4-20 eligible student who:

4-21 (a) Is pursuing a career in education or health care; or

4-22 (b) Demonstrates to the satisfaction of the board of regents that he

4-23 participated actively in anti-smoking, anti-drug or anti-alcohol programs or

4-24 other health care programs in high school.

4-25 4. A scholarship must be used only:

4-26 (a) For the payment of registration fees and laboratory fees and

4-27 expenses;

4-28 (b) To purchase required textbooks and course materials; and

4-29 (c) For other costs directly related to education.

4-30 5. A student who receives a scholarship shall maintain at least a 2.0

4-31 grade-point average, on a 4.0 grading scale, in a course of study approved

4-32 by the board of regents and otherwise maintain satisfactory academic

4-33 progress. Except as otherwise provided in this subsection, if a student:

4-34 (a) Drops out of school; or

4-35 (b) Fails to maintain at least a 2.0 grade-point average or otherwise

4-36 maintain satisfactory academic progress,

4-37 the student shall repay the scholarship in accordance with the terms and

4-38 conditions prescribed by the board of regents. If a student drops out of

4-39 school under special circumstances or conditions of hardship and returns to

4-40 school within a reasonable time, the board of regents may waive the

4-41 requirement that the student repay the scholarship. The board of regents

4-42 may contract to facilitate the collection of any repayment required pursuant

4-43 to this subsection.

5-1 Sec. 7. 1. Upon the approval of applications, the board of regents

5-2 shall request an allocation by the interim finance committee from the

5-3 Nevada scholarship trust fund in an amount of money sufficient to pay for

5-4 the scholarships awarded by the board of regents.

5-5 2. The interim finance committee shall notify the state treasurer to

5-6 disburse from the Nevada scholarship trust fund to the board of regents an

5-7 amount of money sufficient to pay for the scholarships awarded by the

5-8 board of regents.

5-9 Sec. 8. On or before February 1 of each odd-numbered year, the board

5-10 of regents shall submit a report to the director of the legislative counsel

5-11 bureau for transmittal to the legislature that includes an evaluation of the

5-12 Nevada scholarship program and any recommendations for legislation

5-13 concerning the program.

5-14 Sec. 9. 1. The legislative committee on expenditures relating to

5-15 tobacco settlements is hereby created. The legislative commission shall

5-16 appoint to the committee:

5-17 (a) Three members of the senate, two of whom served on the senate

5-18 standing committee on human resources and facilities during the 70th

5-19 session of the Nevada legislature; and

5-20 (b) Three members of the assembly, one of whom served on the

5-21 assembly standing committee on health and human services and one of

5-22 whom served on the assembly standing committee on education during the

5-23 70th session of the Nevada legislature.

5-24 2. The legislative commission shall select a chairman and vice

5-25 chairman of the committee from among the members of the committee.

5-26 3. A vacancy in the membership of the committee must be filled in the

5-27 same manner as the original appointment.

5-28 4. A member of the committee who is not a candidate for reelection or

5-29 who is defeated for reelection continues to serve until the convening of the

5-30 next regular session of the legislature.

5-31 5. The director of the legislative counsel bureau or his designee shall

5-32 serve as the nonvoting recording secretary of the committee.

5-33 6. Except during a regular or special session of the legislature, for each

5-34 day or portion of a day during which a member of the committee attends a

5-35 meeting of the committee or is otherwise engaged in the business of the

5-36 committee, he is entitled to receive the:

5-37 (a) Compensation provided for a majority of the members of the

5-38 legislature during the first 60 days of the preceding regular session;

5-39 (b) Per diem allowance provided for state officers and employees

5-40 generally; and

5-41 (c) Travel expenses provided pursuant to NRS 218.2207.

5-42 The compensation, per diem allowances and travel expenses of the

5-43 members of the committee must be paid from the legislative fund.

6-1 Sec. 10. 1. The advisory group to advise and assist the legislative

6-2 committee on expenditures relating to tobacco settlements is hereby

6-3 created. The advisory group consists of five members who are appointed as

6-4 follows:

6-5 (a) One member employed in the office of the attorney general,

6-6 appointed by the attorney general;

6-7 (b) One member employed in the office of the governor, appointed by

6-8 the governor;

6-9 (c) One member employed in the office of the state treasurer, appointed

6-10 by the state treasurer;

6-11 (d) One member appointed by the governor who represents the interests

6-12 of public health; and

6-13 (e) One member appointed by the governor who represents the interests

6-14 of education.

6-15 2. A vacancy in the membership of the advisory group must be filled

6-16 in the same manner as the original appointment.

6-17 3. Members of the advisory group serve without compensation, except

6-18 that for each day or portion of a day during which a member of the

6-19 advisory group attends a meeting of the advisory group or is otherwise

6-20 engaged in the business of the advisory group, he is entitled to receive the

6-21 per diem allowance and travel expenses provided for state officers and

6-22 employees generally. The per diem allowances and travel expenses must

6-23 be paid from the legislative fund.

6-24 Sec. 11. 1. The members of the legislative committee on

6-25 expenditures relating to tobacco settlements shall meet throughout the year

6-26 at the times and places specified by a call of the chairman or a majority of

6-27 the committee.

6-28 2. Four members of the committee constitute a quorum, and a majority

6-29 of the quorum may exercise all the power and authority conferred on the

6-30 committee.

6-31 3. The committee shall:

6-32 (a) Report to the legislature regarding issues pertaining to settlement

6-33 agreements with tobacco companies pursuant to which the State of Nevada

6-34 receives money.

6-35 (b) Submit recommendations to the legislature for the use of the money

6-36 obtained from the settlement agreements, including, without limitation, the

6-37 money that is accounted for separately in the trust fund for health programs

6-38 pursuant to subsection 2 of section 2 of this act, in a manner that is

6-39 consistent with the master settlement agreement, consent decree and any

6-40 other applicable requirements of federal or state law. In determining the

6-41 most beneficial manner to distribute money received from the settlement

6-42 agreements, the committee shall consider:

7-1 (1) Recommendations made by agencies of the Federal Government,

7-2 including, without limitation, the "Best Practices Model" published by the

7-3 United States Centers for Disease Control and Prevention;

7-4 (2) Recommendations and suggestions made by the advisory group

7-5 created to advise and assist the committee; and

7-6 (3) Recommendations and suggestions made by members of the

7-7 general public.

7-8 (c) Study the terms and conditions of the settlement agreements entered

7-9 into by the State of Nevada with tobacco companies and provide

7-10 information regarding those terms and conditions to the legislature and the

7-11 general public.

7-12 (d) Provide an open forum for the discussion of suggestions and

7-13 recommendations regarding the use of the money received by the State of

7-14 Nevada from the settlement agreements with tobacco companies in a

7-15 manner that encourages public comment from all parts of this state.

7-16 (e) Meet periodically with the attorney general or his designee to

7-17 maintain familiarity with developing legal issues regarding the settlement

7-18 agreements with tobacco companies.

7-19 (f) Meet periodically with the state treasurer or his designee to review

7-20 the manner in which money received from the settlement agreements with

7-21 tobacco companies is invested and to explore alternative methods of

7-22 investment consistent with the constitution and laws of this state.

7-23 (g) Provide to state agencies and political subdivisions of this state

7-24 information regarding opportunities for related grants which may be

7-25 available.

7-26 (h) Gather information regarding programs that have been adopted by

7-27 other states to distribute and invest money received from settlement

7-28 agreements with tobacco companies to identify whether such programs or

7-29 parts thereof may be beneficial to this state.

7-30 (i) Recommend methods to ensure that any money received by the State

7-31 of Nevada from settlement agreements with tobacco companies will not be

7-32 used to supplant existing methods of funding that are available to public

7-33 agencies.

7-34 (j) Develop guidelines to ensure the fiscal accountability, monitoring

7-35 and, if applicable, scientific evaluation of any programs that receive money

7-36 from settlement agreements with tobacco companies.

7-37 4. On or before February 1, 2001, the committee shall submit a report

7-38 of its study, including any recommendations for legislation, to the director

7-39 of the legislative counsel bureau for transmittal to the 71st session of the

7-40 Nevada legislature.

8-1 Sec. 12. 1. The money that is accounted for separately in the trust

8-2 fund for health programs pursuant to subsection 3 of section 2 of this act

8-3 may be disbursed to counties in accordance with section 3 of this act

8-4 commencing on July 1, 2000.

8-5 2. On or before February 1, 2001, the state health officer shall submit

8-6 a written report to the director of the legislative counsel bureau for

8-7 transmittal to the 71st session of the Nevada legislature that includes a

8-8 description of the grants that were made pursuant to section 3 of this act

8-9 and the local health programs and other health-related endeavors for which

8-10 the grants were used by the counties.

8-11 Sec. 13. 1. This act becomes effective on July 1, 1999.

8-12 2. Sections 4 to 11, inclusive, of this act expire by limitation on June

8-13 30, 2001.