Chapter 919 Oregon Laws 1999

Session Law

AN ACT

HB 2007

Relating to the Health Security Fund; appropriating money; and providing that this 1999 Act shall be referred to the people for their approval or rejection.

Be It Enacted by the People of the State of Oregon:

SECTION 1. (1) As used in this section, "health programs" means programs for transportation of the elderly and disabled, programs for housing for persons with disabilities and for low and very low income families and individuals and any other programs established or defined by law as programs eligible for financing with moneys from the Health Security Fund established under this section.

(2) The Health Security Fund is established in the State Treasury, separate and distinct from the General Fund. All earnings on moneys in the fund shall be appropriated continuously and expended only for the purpose of financing health programs.

(3) The Health Security Fund shall consist of all

moneys paid to this state by United States tobacco products manufacturers under the Master Settlement Agreement of 1998.

(4) Moneys in the fund shall be invested as provided in ORS 293.701 to 293.790 and the earnings from such investments shall be credited to the Health Security Fund.

(5) Earnings on moneys in the Health Security Fund shall be distributed annually.

SECTION 2. The programs listed in this section are health programs eligible for financing with moneys in the Health Security Fund, and earnings on moneys in the Health Security Fund shall be expended on the programs in the following amounts:

(1) Forty percent of the earnings, but not more than $7 million in each fiscal year, to counties for public health programs and services and mental health programs and services as provided in section 4 of this 1999 Act.

(2) Twenty percent of the earnings, but not more than $5 million in each fiscal year, to the Elderly and Disabled Special Transportation Fund for expenditure as other moneys in the Elderly and Disabled Special Transportation Fund are expended.

(3) Twenty percent of the earnings, but not more than $5 million in each fiscal year, to the Housing and Community Services Department for programs that provide housing for persons with disabilities or for low and very low income families and individuals.

(4) Ten percent of the earnings to fund tobacco use prevention, education and cessation programs administered by the Health Division.

(5) Seven percent of the earnings, but not more than $10 million, to Oregon Health Sciences University as provided in sections 6 and 7 of this 1999 Act.

(6) Three percent of the earnings, but not more than $1.5 million in each fiscal year, to the Department of Human Resources to fund the department's shelter care grant program as provided in section 8 of this 1999 Act.

SECTION 3. (1) Notwithstanding section 1 (2) of this 1999 Act, the Legislative Assembly, upon approval by two-thirds of the members elected to each house of the Legislative Assembly, may appropriate moneys from the Health Security Fund principal when the following economic conditions present or predicted in this state indicate the presence or likelihood of an economic recession:

(a) The seasonally adjusted rate of nonfarm payroll employment declines for two or more consecutive quarters; and

(b) A quarterly economic and revenue forecast projects a negative ending balance that is greater than one percent of General Fund appropriations for the biennium for which the forecast is being made.

(2) Notwithstanding section 1 (2) of this 1999 Act, the Legislative Assembly may also appropriate moneys from the Health Security Fund principal when any judicial order or decree or any settlement agreement to which this state is a party requires the State of Oregon to pay any portion of the fund principal to the federal government.

(3) Appropriations made under subsection (1) or (2) of this section must be for the purpose of financing those health programs established or defined by law as programs eligible for such financing.

(4) The Legislative Assembly may by law prescribe the procedures to be used and identify the persons required to make the forecasts and projections described in subsection (1)(b) of this section.

(5) The Legislative Assembly may not use moneys in the Health Security Fund for a purpose other than financing health programs or under conditions other than those described in subsection (1) of this section unless the electors of this state approve a measure referred to the electors by the Legislative Assembly that authorizes the use of moneys in the Health Security Fund without regard to economic conditions or for a purpose specified in the measure. When the electors of this state approve the use of moneys in the fund for a purpose other than financing health programs, moneys may be appropriated from the Health Security Fund under this subsection only for the purpose approved by the electors.

SECTION 4. (1) The following health programs are eligible to receive financial assistance from the Health Security Fund established under section 1 of this 1999 Act:

(a) Public health programs and services required under ORS 431.416; and

(b) Mental health programs and services required under ORS 430.630.

(2) In each fiscal year, the counties in this state shall receive not more than $7 million in financial assistance from the Health Security Fund for the programs described in subsection (1) of this section. If in any fiscal year there are insufficient moneys available for the distribution to counties of the amount specified in this subsection, earnings from the Health Security Fund shall be reduced proportionately among all counties eligible to receive earnings from the fund.

(3) Each county shall receive a share of the moneys distributed to counties under subsection (2) of this section in such proportion as the population of the county bears to the total population of all the counties in this state. However, when the full amount specified in subsection (2) of this section is distributed to counties, a county shall not receive less than $50,000 in the fiscal year. Allocation plans and policies adopted by the Department of Human Resources under subsection (4) of this section may establish other criteria for distribution of moneys under this subsection.

(4) The Department of Human Resources shall develop allocation plans and policies to be followed by counties when spending moneys received under this section. The allocation plans and policies shall require a county to allocate the moneys received under this section equally between public health programs and services and mental health programs and services. However, the plans and policies may allow a county governing body to change the allocation ratio to meet local conditions and needs. The department may also establish reporting requirements for counties relating to the use of moneys received under this section.

SECTION 5. Section 6 of this 1999 Act is added to and made a part of ORS chapter 353.

SECTION 6. (1) The Oregon Health Sciences University Board of Directors shall enter into an agreement with a community foundation, as defined in ORS 348.580, in Oregon to create an Oregon Health Sciences University Medical Research Partnership. The partnership may be used to recruit and retain faculty who are national quality investigators who conduct bench-to-bedside research in emerging clinical areas such as cancer, gene therapy, vaccine development, women's health issues and cardiovascular disorders.

(2) The board shall transfer moneys appropriated to, allocated to, transferred to or otherwise received by the university for the purposes of the partnership to the community foundation to be placed in the partnership.

(3) Any agreement entered into between the board and a community foundation under this section shall include a requirement that the partnership be invested by the community foundation and that moneys in the partnership be distributed to the Oregon Health Sciences Foundation as follows:

(a) For each $2 million of private matching funds raised by the Oregon Health Sciences Foundation, the community foundation shall release $1 million from the partnership to the Oregon Health Sciences Foundation for the purpose of recruiting and retaining intellectual capital at the university, if such funds are available.

(b) For each $3 million increment raised and released under paragraph (a) of this subsection, the Oregon Health Sciences Foundation may use no more than $1 million for recruitment, relocation and capital expenses for each faculty recruitment and a minimum of $2 million to establish an income-producing endowment to support the faculty position.

(4) In addition to the requirements of subsection (3) of this section, the agreement shall include a requirement that the community foundation, in partnership with the university, submit an annual report to the Legislative Assembly or the appropriate interim legislative committees about the key faculty recruitments that have been funded through the Oregon Health Sciences University Medical Research Partnership and the resulting return to Oregon's economy and quality of life.

SECTION 7. In each fiscal year, there is transferred to the Oregon Health Sciences University public corporation seven percent of all earnings on moneys in the Health Security Fund until $10 million has been transferred. The moneys transferred under this section may be expended for the Oregon Health Sciences University Medical Research Partnership created under section 6 of this 1999 Act.

SECTION 8. (1) In each fiscal year, the Department of Human Resources shall receive not more than $1.5 million from the Health Security Fund to finance a grant program under which the department awards grants to nonprofit organizations that provide shelter care or temporary supervised housing accommodations for pregnant women, mothers of newborn children and their newborn children or women who are victims of domestic violence.

(2) To be eligible for a grant, a nonprofit organization must have been organized and operating shelter care programs or facilities prior to January 1, 1999. A nonprofit organization may use grant moneys from the Health Security Fund only for maintenance and expansion of existing program activities and may not use grant moneys for the establishment of new facilities or programs. However, a nonprofit organization may use grant moneys to change the location of existing facilities.

(3) A grant made to any single nonprofit organization may not exceed 25 percent of the organization's income in the fiscal year immediately preceding the fiscal year in which the grant is received.

(4) In any fiscal year, a nonprofit organization may receive a $25,000 grant for each shelter or housing facility operated by the organization, but may not receive more than $75,000 in any fiscal year.

(5) Not less than 25 percent of the total amount of grants awarded by the Department of Human Resources in a fiscal year shall be awarded to nonprofit organizations that in the fiscal year immediately preceding the fiscal year in which the grant is awarded received more than 50 percent of operating revenues from sources other than federal, state or local government agencies.

SECTION 9. When the earnings on moneys in the Health Security Fund in any fiscal year exceed the amount necessary for distribution of the maximum amounts to health programs as provided in section 2 of this 1999 Act, the Legislative Assembly may provide for the distribution of the excess earnings in amounts greater than those specified in section 2 of this 1999 Act or to health programs other than those specified in section 2 of this 1999 Act.

SECTION 10. The first distribution of moneys from the Health Security Fund shall be made not later than one year after the effective date of this 1999 Act.

SECTION 11. This 1999 Act shall be submitted to the people for their approval or rejection at the next regular general election [November 7, 2000] held throughout this state.

Filed in the office of Secretary of State August 2, 1999

Referred by Legislative Assembly to people for approval or rejection. Effective date, if approved, December 7, 2000

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