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 Whereas, Over the last decade, state governments initiated lawsuits

1-2 against the tobacco industry, asserting a variety of claims, but did not

1-3 include any claims for reimbursement of health care costs related to the use

1-4 of tobacco that were paid under the Medicaid program; and

1-5 Whereas, The lawsuits against the tobacco industry were initiated by

1-6 the states without any financial, technical or other assistance from any

1-7 branch or agency of the Federal Government, and no such assistance was

1-8 received at any stage of the litigation or settlement process; and

1-9 Whereas, In November of 1998, 46 states and the District of Columbia

1-10 agreed to settle their lawsuits against the major tobacco companies to

1-11 recover health care costs related to the use of tobacco; and

1-12 Whereas, The Attorneys General of these states carefully crafted these

1-13 agreements to reflect only state costs, direct damages, civil penalties,

1-14 disgorgement of profits, injunctive relief and other remedies appropriate

1-15 for the states; and

1-16 Whereas, States that entered into the settlement agreement, as well as

1-17 other states that entered into individual settlement agreements, have

1-18 planned for or have begun to plan for the allocation and expenditure of the

1-19 money received under those agreements, and in some cases have already

1-20 received and expended money under those agreements; and

2-1 Whereas, If the Secretary of Health and Human Services were to claim

2-2 that the settlement agreement of each of the states includes the existence of

2-3 specific Medicaid claims, arbitrarily assuming that some portion of the

2-4 settlement money received by the states is related to such Medicaid

2-5 recovery claims and seeking to recoup what is determined to be the federal

2-6 share of the money, the process would likely result in protracted and costly

2-7 litigation that would cause unnecessary conflict between the states and the

2-8 Federal Government and would delay or preclude states from using their

2-9 settlement money for the health and welfare of their residents; and

2-10 Whereas, The Hutchison-Graham Bill in the United States Senate and

2-11 H.R. 351 in the United States House of Representatives would amend the

2-12 Social Security Act to prohibit treating any money recovered from tobacco

2-13 companies as an overpayment for purposes of Medicaid, which would

2-14 prohibit recoupment by the Federal Government of the money from such

2-15 settlements; now, therefore, be it

2-16 Resolved by the Assembly and Senate of the State of Nevada,

2-17 Jointly, That the members of the Nevada Legislature respectfully urge

2-18 United States Senators Harry Reid and Richard Bryan to cosponsor the

2-19 Hutchinson-Graham Bill and United States Representatives Shelly Berkley

2-20 and Jim Gibbons to cosponsor H.R. 351; and be it further

2-21 Resolved, That the Nevada Legislature calls upon the Congress of the

2-22 United States to pass the legislation necessary to prohibit recoupment by

2-23 the Federal Government of any of the money distributed to the states from

2-24 settlement agreements with the tobacco companies; and be it further

2-25 Resolved, That the Chief Clerk of the Assembly prepare and transmit

2-26 a copy of this resolution to the Vice President of the United States as the

2-27 presiding officer of the Senate, the Speaker of the House of

2-28 Representatives, each member of the Nevada Congressional Delegation

2-29 and the Secretary of Health and Human Services; and be it further

2-30 Resolved, That this act becomes effective upon passage and approval.