A BILL TO BE ENTITLED
AN ACT to dissolve and repeal the charter of the golden l.e.a.f., inc. and to direct unencumbered assets and funds of THE golden l.e.a.f., inc., to the fund established for the benefit of health.
The General Assembly of North Carolina enacts:
SECTION 1.  Pursuant to Section 3 of S.L. 1999‑2 and Section 1 of Article VIII of the North Carolina Constitution, the General Assembly hereby dissolves and repeals the charter of the nonprofit corporation, The Golden L.E.A.F. (Long‑Term Economic Advancement Foundation), Inc., created pursuant to S.L. 1999‑2 and the Consent Decree and Final Judgment entered in the action of State of North Carolina v. Philip Morris Incorporated, et al., 98 CVS 14377, in the General Court of Justice, Superior Court Division, Wake County, North Carolina, on December 21, 1998.  Pursuant to G.S. 143‑16.4 and Section 3(5) of S.L. 1999‑2, all unencumbered assets and funds of the nonprofit corporation, including the right to receive future funds pursuant to Section 2 of S.L. 1999‑2, are transferred to the Health Trust Account in the Settlement Reserve Fund to be appropriated by the General Assembly for prescription drugs for senior citizens.
Pursuant to Section 2(b) of S.L. 1999‑2, the fifty percent (50%) of the annual installment payment to the North Carolina State Specific Account otherwise transferred and assigned to The Golden L.E.A.F. (Long‑Term Economic Advancement Foundation), Inc., during the 2003‑2004 fiscal year and all future payments are transferred to the Settlement Reserve Fund. The Attorney General shall take all necessary actions to notify the court in the action entitled State of North Carolina v. Philip Morris Incorporated, et al., 98 CVS 14377, in the General Court of Justice, Superior Court Division, Wake County, North Carolina, and the administrators of the State Specific Account established under the Master Settlement Agreement of this action by the General Assembly redirecting this payment.
SECTION 2.  Section 6 of S.L. 1999‑2 reads as rewritten:
"Section 6.  It is the intent of the General Assembly that the funds under the Master Settlement Agreement, which is incorporated into the Consent Decree, be allocated as follows:(1)	Fifty percent (50%) to the  Settlement Reserve Fund established in G.S. 143‑16.4, to be appropriated by the General Assembly for health programs.(2)	Twenty‑five percent (25%) to a trust fund to be established by the General Assembly for the benefit of tobacco producers, tobacco allotment holders, and persons engaged in tobacco‑related businesses, with this trust fund to be governed by a board of trustees representing these interests. To carry out this purpose, this trust fund may provide direct and indirect financial assistance, in accordance with criteria established by the trustees of the trust fund and to the extent allowed by law, to (i) indemnify tobacco producers, allotment holders, and persons engaged in tobacco‑related businesses from the adverse economic effects of the Master Settlement Agreement, (ii) compensate tobacco producers and allotment holders for the economic loss resulting from lost quota, and (iii) revitalize tobacco dependent communities.
(3)	Twenty‑five percent (25%) to a trust fund to be established by the General Assembly for the benefit of health, with this trust fund to be governed by a board of trustees comprised of a broad representation of health interests."
SECTION 3.   G.S. 143‑16.4 reads as rewritten:
"§ 143‑16.4.  Settlement Reserve Fund.
(a)	The "Settlement Reserve Fund" is established as a restricted reserve in the General Fund. Except as otherwise provided in this section, funds shall be expended from the Settlement Reserve Fund only by specific appropriation by the General Assembly.
(a1)	A Health Trust Account is established in the Settlement Reserve Fund. The portion of each Master Settlement Agreement payment identified in Section 6(3) of S.L. 1999‑2 shall be credited to the Health Trust Account. The State Controller shall transfer one-half of the funds in the Health Trust Account to the Health and Wellness Trust Fund created in Article 6C of Chapter 147 of the General Statutes and one-half of the funds in the Health Trust Account to the Department of Health and Human Services for Medicaid programs.(a2)	A Tobacco Trust Account is established in the Settlement Reserve Fund. The portion of each Master Settlement Agreement payment identified in Section 6(2) of S.L. 1999–2 shall be credited to the Tobacco Trust Account. The State Controller shall transfer all funds in the Tobacco Trust Account to the Tobacco Trust Fund created in Article 75 of Chapter 143 of the General Statutes.
(b)	Unless prohibited by federal law, federal funds provided to the State by block grant or otherwise as part of federal legislation implementing a settlement between United States tobacco companies and the states shall be credited to the Settlement Reserve Fund. Unless otherwise encumbered or distributed under a settlement agreement or final order or judgment of the court, funds paid to the State or a State agency pursuant to a tobacco litigation settlement agreement, or a final order or judgment of a court in litigation between tobacco companies and the states, shall be credited to the Settlement Reserve Fund."
SECTION 4.  G.S. 147‑86.30(c) reads as rewritten:
"(c)	Creation of Fund Reserve. – The Commission shall reserve, and shall not expend, twenty percent (20%) of each annual payment allocated to the Health and Wellness Trust Fund pursuant to G.S. 143‑16.4 during years 2001 through 2025 to create and build the Fund Reserve. During years 2001 through 2025, the Commission may expend any investment earnings on the reserved funds. Beginning in year 2026, and thereafter, the Commission shall not expend the reserved funds but may continue to expend any investment earnings on the reserved funds."
SECTION 5.  This act becomes effective July 1, 2003.