text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Children's Smoking Prevention, 
  Health, and Learning Trust Fund Act of 1999''.
  
  SEC. 2. AUTHORITY TO WAIVE RECOUPMENT UNDER THE MEDICAID PROGRAM OF 
                TOBACCO-RELATED FUNDS.
  
      (a) In General.--Section 1903(d)(3) of the Social Security Act (42 
  U.S.C. 1396b(d)(3)) is amended--
              (1) by inserting ``(A)'' before ``The''; and
              (2) by adding at the end the following:
      ``(B) Subparagraph (A) and paragraph (2)(B) shall not apply to any 
  amount recovered or paid to a State as part of the comprehensive 
  settlement of November 1998 between manufacturers of tobacco products 
  (as defined in section 5702(d) of the Internal Revenue Code of 1986) 
  and States, or as part of any individual State settlement or judgment 
  reached in litigation initiated or pursued by a State against one or 
  more such manufacturers, if the Secretary finds that the following 
  conditions are met:
              ``(i) Subject to subparagraph (C), with respect to any 
          fiscal year, the State demonstrates, through a plan submitted 
          to, and approved by, the Secretary, that 50 percent of amounts 
          so recovered or paid (in this subparagraph referred to as the 
          `Federal share') during the fiscal year shall be expended 
          consistent with the following:
                      ``(I) At least 35 percent of the Federal share 
                  shall be expended on one or more of the tobacco use 
                  prevention programs described in subparagraph (D).
                      ``(II) Subject to subparagraph (F), the remainder 
                  of the Federal share (determined after the application 
                  of subclause (I)) shall be expended on one or more of 
                  the health care and early learning programs described 
                  in subparagraph (E).
              ``(ii) With respect to any fiscal year--
                      ``(I) the level of funds expended by the State 
                  (determined without regard to any portion of the 
                  Federal share expended by the State) for any program on 
                  which a portion of the Federal share is to be expended 
                  is not less than the level of funds expended by the 
                  State during the most recent State fiscal year ending 
                  before the date on which the State first recovered or 
                  received any funds pursuant to a settlement or judgment 
                  described in this subparagraph; and
                      ``(II) an amount equal to the Federal share is used 
                  to supplement and not supplant the level of funds 
                  expended by the State for any such program during such 
                  State fiscal year.
              ``(iii) The State files with the Secretary an annual report 
          that, with respect to a fiscal year--
                      ``(I) details how the Federal share of the amounts 
                  so recovered or paid has been spent consistent with 
                  clause (i); and
                      ``(II) identifies, with respect to each program 
                  funded in accordance with clause (i) (and, if 
                  applicable, subparagraph (F))--
                              ``(aa) the amount of additional 
                          expenditures made for each such program;
                              ``(bb) the number of additional individuals 
                          participating in the program and the nature of 
                          the services provided; and
                              ``(cc) such other information as the 
                          Secretary determines is necessary.
      ``(C) If any State can demonstrate to the Secretary that the 
  Federal share of the total amount expended by the State under this 
  title to treat tobacco-induced illnesses is less than 50 percent of the 
  total amount recovered or paid to the State as a result of a settlement 
  or judgment described in subparagraph (B), clause (i) of that 
  subparagraph shall be applied by substituting for `50 percent' the 
  percentage so demonstrated by the State.
      ``(D) For purposes of subparagraph (B)(i)(I), tobacco use 
  prevention programs described in this subparagraph are the following:
              ``(i) Counter-advertising programs to discourage tobacco 
          use.
              ``(ii) Smoking cessation programs.
              ``(iii) School-based tobacco use prevention programs.
              ``(iv) Community-based tobacco use prevention programs.
              ``(v) Programs to enforce prohibitions on the sale of 
          tobacco products to youth.
              ``(vi) Other State-initiated programs to deter tobacco use 
          and assist individuals suffering from nicotine addiction or 
          smoking-induced disease.
      ``(E) For purposes of subparagraph (B)(i)(II), health care and 
  early learning programs described in this subparagraph are the 
  following:
              ``(i) Community health centers that receive funds under 
          section 330 of the Public Health Service Act (42 U.S.C. 254b).
              ``(ii) Prescription drug assistance programs to help senior 
          citizens pay for pharmaceuticals.
              ``(iii) The State Children's Health Insurance Program 
          established under title XXI.
              ``(iv) Maternal and child health services provided under 
          title V.
              ``(v) The Child Care and Development Block Grant Act of 
          1990 (42 U.S.C. (42 U.S.C. 9858 et seq.).
              ``(vi) The Safe and Drug-Free Schools and Communities 
          Program under title IV of the Elementary and Secondary 
          Education Act of 1965 (20 U.S.C. 7101 et seq.).
              ``(vii) State-initiated programs approved by the Secretary 
          to--
                      ``(I) make health insurance available to the 
                  uninsured;
                      ``(II) provide health services to the underserved 
                  or uninsured;
                      ``(III) reduce public health risks; or
                      ``(IV) support medical research and expand access 
                  to clinical trials for individuals with serious 
                  illnesses.
              ``(viii) State-initiated programs approved by the Secretary 
          to--
                      ``(I) award grants to communities for the creation, 
                  improvement, and expansion of early childhood education 
                  opportunities; or
                      ``(II) serve the educational and developmental 
                  needs of children 5 years of age or younger.
      ``(F) In the case of any State that is a tobacco-growing State, the 
  State may use up to 25 percent of the remainder of the Federal share 
  (determined after the application of subparagraph (B)(i)(I)) for 
  programs to assist tobacco farmers and tobacco workers who have 
  sustained an adverse financial impact as a direct result of a 
  settlement or judgment described in subparagraph (B).
      ``(G) Amounts provided to a State under any provision of law 
  referred to in subparagraph (D) or (E) shall not be reduced solely as a 
  result of the availability of funds recovered or received pursuant to a 
  settlement or judgment described in subparagraph (B).
      ``(H) If the Secretary determines that amounts described in 
  subparagraph (B)(i) are not being spent in accordance with 
  subparagraphs (D), (E), and, as applicable, (C) and (F), or that a 
  State has failed to comply with the requirements of clauses (ii) and 
  (iii) of subparagraph (B), subparagraph (A) and paragraph (2)(B) shall 
  apply to such amounts and the Secretary shall take appropriate action 
  to offset such amounts from the amounts otherwise paid to the State 
  under this title.''.
      (b) Prohibition on Payment for Administrative Expenses Incurred in 
  Pursuing Tobacco Litigation.--Section 1903(i) of the Social Security 
  Act (42 U.S.C. 1396b(i)) is amended--
              (1) in paragraph (18), by striking the period and inserting 
          ``; or''; and
              (2) by inserting after paragraph (18) the following:
              ``(19) with respect to any amount expended on 
          administrative costs to initiate or pursue litigation against 
          one or more manufacturers of tobacco products (as defined in 
          section 5702(d) of the Internal Revenue Code of 1986).''.
      (c) Effective Date.--The amendments made by this section apply to 
  amounts recovered or paid to a State before, on, or after the date of 
  enactment of this Act.
target: Provides that: (1) if the Secretary determines that recovered amounts are not being spent accordingly the Secretary shall take appropriate action to offset such amounts from the amounts otherwise paid to the State under Medicaid; and (2) payment for administrative expenses incurred in pursuing tobacco litigation is prohibited.
  Makes this Act effective with regard to amounts recovered or paid to a State before, on, or after the enactment of this Act.
feat_title: Children's Smoking Prevention, Health, and Learning Trust Fund Act of 1999