(a) There is an Energy Overcharge Restitution Fund. (b) (1) The Fund is a continuing, nonlapsing fund that is not subject to the provisions of § 7-302 of this subtitle. (2) There shall be credited to the Fund: (i) all federal fund revenues consisting of refunds received by the State from any source as a direct or indirect result of litigation or administrative proceedings prosecuted by the U.S. Department of Energy to redress violations of federal petroleum pricing regulations under the Emergency Petroleum Allocation Act, 15 U.S.C. §§ 751 through 756, and the Energy Policy and Conservation Act, 15 U.S.C. §§ 757 through 760H; and (ii) all special fund revenues received and accepted as a gift under § 2-201 of this article that are expressly given for the purpose of energy assistance or weatherization for individuals in this State. (3) Revenues received by the State as a result of claims representing purchases by the State are excluded from the Fund. (c) The Treasurer shall: (1) invest and reinvest the Fund in the same manner as other State funds; and (2) credit any investment earnings to the Fund. (d) Expenditures from the Fund shall be made by: (1) an appropriation in the annual State budget; or (2) a budget amendment in accordance with § 7-209 of this title, provided that any budget amendment shall be submitted to and approved by the Legislative Policy Committee prior to the expenditure or obligation of funds. (e) In accordance with the provisions of subsection (f) of this section, the Director of the Maryland Energy Administration or the designee of the Director shall: (1) administer the Fund; (2) develop plans, prepare and submit proposals to the Governor for Fund use, and undertake any action that is necessary to obtain for the Fund all energy overcharge refunds and judgment awards to which the citizens of the State have a legal entitlement; (3) assess and determine the respective needs of the citizens of the State and develop recommendations for the allocation and disbursement of funds in accordance with those needs pursuant to the provisions of subsection (f) of this section; (4) conduct public hearings at least twice a year at times and places the Director or the designee of the Director determines; and (5) perform other duties as may be assigned by the Governor. (f) (1) The Fund shall be expended subject to any restrictions on its use or other limitations on its allocation that are: (i) expressly provided by statute; or (ii) required as a condition of the acceptance of funds. (2) The Fund shall be expended: (i) for emergency energy assistance provided under § 5-5A- 07(a) of the Human Services Article; (ii) for energy assistance programs provided under § 5-5A- 07(b) of the Human Services Article; (iii) for energy assistance and weatherization programs provided under § 4-211(c) of the Housing and Community Development Article and Title 9, Subtitle 20 of the State Government Article; (iv) for energy extension service and low-income home-energy programs provided under 42 U.S.C. §§ 7001 through 7011 and 8621 through 8629; (v) for other energy assistance or weatherization programs meeting the federal restitutive objectives governing the distribution of overcharge refunds to the states; (vi) for any other program within the definition of "energy conservation programs" as provided by Pub. L. No. 97-377, 96 Stat. 1830, § 155 (1982) and subsequent amendments, including the State Energy Efficiency Programs Improvement Act of 1990, Pub. Law No. 101-440; (vii) for energy efficiency and economic development loans provided under Title 9, Subtitle 20A of the State Government Article; or (viii) for any other purpose required as a condition of their acceptance. (3) In addition to the provisions of paragraph (2) of this subsection, priority shall be given to the energy assistance and weatherization programs. (4) Disbursements from the Fund to programs funded by the State or with federal funds administered by the State shall be used solely to supplement, and not to supplant, funds otherwise available for such programs under federal or State law. §7-317. IN EFFECT (a) There is a Cigarette Restitution Fund. (b) (1) The Fund is a continuing, nonlapsing fund that is not subject to § 7-302 of this subtitle. (2) Subject to subsections (h) and (i) of this section, there shall be credited to the Fund all revenues consisting of funds received by the State from any source resulting, directly or indirectly, from any judgment against or settlement with tobacco product manufacturers, tobacco research associations, or any other person in the tobacco industry relating to litigation, administrative proceedings, or any other claims made or prosecuted by the State to recover damages for violations of State law. (3) There shall be credited to the Fund all money collected under § 24-508 of the Health - General Article or § 5-608 of the Labor and Employment Article. (c) The Treasurer shall: (1) invest and reinvest the Fund in the same manner as other State funds; and (2) credit any investment earnings to the Fund. (d) Expenditures from the Fund shall be made by an appropriation in the annual State budget. (e) (1) The Fund shall be expended subject to any restrictions on its use or other limitations on its allocation that are: (i) expressly provided by statute; (ii) required as a condition of the acceptance of funds; or (iii) determined to be necessary to avoid recoupment by the federal government of money paid to the Fund. (2) Except as otherwise provided under subsection (h) of this section, disbursements from the Fund to programs funded by the State or with federal funds administered by the State shall be used solely to supplement, and not to supplant, funds otherwise available for the programs under federal or State law as provided in this section. (f) (1) The Cigarette Restitution Fund shall be used to fund: (i) the Tobacco Use Prevention and Cessation Program established under Title 13, Subtitle 10 of the Health - General Article; (ii) the Cancer Prevention, Education, Screening, and Treatment Program established under Title 13, Subtitle 11 of the Health - General Article; (iii) the activities of the Southern Maryland Agricultural Development Commission, in accordance with § 13-611 of the Economic Development Article; (iv) for each of fiscal years 2025 through 2029, the Maryland Community Health Resources Commission Fund, in accordance with subsection (g) of this section; (v) the public education campaign on prostate, lung, and breast cancer prevention established under Title 13, Subtitle 11A of the Health - General Article; and (vi) other programs that serve the following purposes: 1. reduction of the use of tobacco products by individuals under the age of 21 years; 2. implementation of the Southern Maryland Regional Strategy-Action Plan for Agriculture adopted by the Tri-County Council for Southern Maryland with an emphasis on alternative crop uses for agricultural land now used for growing tobacco; 3. public and school education campaigns to decrease tobacco use with initial emphasis on areas targeted by tobacco manufacturers in marketing and promoting cigarette and tobacco products; 4. smoking cessation programs; 5. enforcement of the laws regarding tobacco sales; 6. the purposes of the Maryland Health Care Foundation under Title 20, Subtitle 5 of the Health - General Article; 7. primary health care in rural areas of the State and areas targeted by tobacco manufacturers in marketing and promoting cigarette and tobacco products; 8. prevention, treatment, and research concerning cancer, heart disease, lung disease, tobacco product use, and tobacco control, including operating costs and related capital projects; 9. substance abuse treatment and prevention programs; and 10. any other public purpose. (2) The provisions of this subsection may not be construed to affect the Governor's powers with respect to a request for an appropriation in the annual budget bill. (g) (1) Amounts may only be expended from the Fund through appropriations in the State budget bill as provided in this subsection. (2) The Governor shall include in the annual budget bill appropriations from the Fund equivalent to the lesser of $100,000,000 or 90% of the funds estimated to be available to the Fund in the fiscal year for which the appropriations are made. (3) For each fiscal year for which appropriations are made, at least 50% of the appropriations shall be made for those purposes enumerated in subsection (f)(1)(i), (ii), and (v)1 through 9 of this section subject to the requirement of subsection (e)(2) of this section. (4) (i) This paragraph does not apply in fiscal year 2026. (ii) For each fiscal year for which appropriations are made, at least 30% of the appropriations shall be made for the purposes of the Maryland Medical Assistance Program. (5) For each fiscal year for which appropriations are made, 0.15% of the Fund shall be appropriated for the purposes of enforcement of Title 16, Subtitle 5 of the Business Regulation Article. (6) For each of fiscal years 2025 through 2029, the Governor shall include in the annual budget bill an appropriation of $8,000,000 to the Maryland Community Health Resources Commission Fund. (7) Any additional appropriations, not subject to paragraph (3), paragraph (4), or paragraph (5) of this subsection, may be made for any lawful purpose. (h) (1) The Fund shall include a separate account consisting of payments received by the State as a result of litigation by participating manufacturers related to the State's diligent enforcement of Title 16, Subtitle 4 of the Business Regulation Article. (2) (i) Except as provided in subparagraph (ii) of this paragraph, distributions from the separate account may be used only to supplant the General Fund appropriation to the historically black colleges and universities required under § 15-126 of the Education Article. (ii) For fiscal year 2026 only, distributions from the separate account may be used to support Medicaid expenses. (i) (1) The Fund shall include a separate account consisting of payments received by the State from any judgment, settlement, penalty, offer of compromise, or any other enforcement action related to the sale and marketing of electronic smoking devices. (2) Distributions from the separate account established under paragraph (1) of this subsection may be used, consistent with any other provision of State law, to supplement the General Fund appropriations designated for programs under subsection (f) of this section with the purpose of reducing the use of tobacco products by individuals under the age of 21 years. (j) For each program, project, or activity receiving funds appropriated under subsection (g)(3) of this section, the Governor shall: (1) develop appropriate statements of vision, mission, key goals, key objectives, and key performance indicators and report these statements in a discrete part of the State budget submission, which shall also provide data for key performance indicators; and (2) report annually, subject to § 2-1257 of the State Government Article, to the General Assembly no later than December 1 on: (i) total funds expended, by program and subdivision, in the prior fiscal year from the Fund established under this section; and (ii) the specific outcomes or public benefits resulting from that expenditure. §7-317. // EFFECTIVE JUNE 30, 2029 PER CHAPTER 644 OF 2023 // // EFFECTIVE UNTIL JUNE 30, 2031 PER CHAPTERS 812 AND 813 OF 2024 // (a) There is a Cigarette Restitution Fund. (b) (1) The Fund is a continuing, nonlapsing fund that is not subject to § 7-302 of this subtitle. (2) Subject to subsections (h) and (i) of this section, there shall be credited to the Fund all revenues consisting of funds received by the State from any source resulting, directly or indirectly, from any judgment against or settlement with tobacco product manufacturers, tobacco research associations, or any other person in the tobacco industry relating to litigation, administrative proceedings, or any other claims made or prosecuted by the State to recover damages for violations of State law. (3) There shall be credited to the Fund all money collected under § 24-508 of the Health - General Article or § 5-608 of the Labor and Employment Article. (c) The Treasurer shall: (1) invest and reinvest the Fund in the same manner as other State funds; and (2) credit any investment earnings to the Fund. (d) Expenditures from the Fund shall be made by an appropriation in the annual State budget. (e) (1) The Fund shall be expended subject to any restrictions on its use or other limitations on its allocation that are: (i) expressly provided by statute; (ii) required as a condition of the acceptance of funds; or (iii) determined to be necessary to avoid recoupment by the federal government of money paid to the Fund. (2) Except as otherwise provided under subsection (h) of this section, disbursements from the Fund to programs funded by the State or with federal funds administered by the State shall be used solely to supplement, and not to supplant, funds otherwise available for the programs under federal or State law as provided in this section. (f) (1) The Cigarette Restitution Fund shall be used to fund: (i) the Tobacco Use Prevention and Cessation Program established under Title 13, Subtitle 10 of the Health - General Article; (ii) the Cancer Prevention, Education, Screening, and Treatment Program established under Title 13, Subtitle 11 of the Health - General Article; (iii) the activities of the Southern Maryland Agricultural Development Commission, in accordance with § 13-611 of the Economic Development Article; (iv) the public education campaign on prostate, lung, and breast cancer prevention established under Title 13, Subtitle 11A of the Health - General Article; and (v) other programs that serve the following purposes: 1. reduction of the use of tobacco products by individuals under the age of 21 years; 2. implementation of the Southern Maryland Regional Strategy-Action Plan for Agriculture adopted by the Tri-County Council for Southern Maryland with an emphasis on alternative crop uses for agricultural land now used for growing tobacco; 3. public and school education campaigns to decrease tobacco use with initial emphasis on areas targeted by tobacco manufacturers in marketing and promoting cigarette and tobacco products; 4. smoking cessation programs; 5. enforcement of the laws regarding tobacco sales; 6. the purposes of the Maryland Health Care Foundation under Title 20, Subtitle 5 of the Health - General Article; 7. primary health care in rural areas of the State and areas targeted by tobacco manufacturers in marketing and promoting cigarette and tobacco products; 8. prevention, treatment, and research concerning cancer, heart disease, lung disease, tobacco product use, and tobacco control, including operating costs and related capital projects; 9. substance abuse treatment and prevention programs; and 10. any other public purpose. (2) The provisions of this subsection may not be construed to affect the Governor's powers with respect to a request for an appropriation in the annual budget bill. (g) (1) Amounts may only be expended from the Fund through appropriations in the State budget bill as provided in this subsection. (2) The Governor shall include in the annual budget bill appropriations from the Fund equivalent to the lesser of $100,000,000 or 90% of the funds estimated to be available to the Fund in the fiscal year for which the appropriations are made. (3) For each fiscal year for which appropriations are made, at least 50% of the appropriations shall be made for those purposes enumerated in subsection (f)(1)(i), (ii), and (v)1 through 9 of this section subject to the requirement of subsection (e)(2) of this section. (4) (i) This paragraph does not apply in fiscal year 2026. (ii) For each fiscal year for which appropriations are made, at least 30% of the appropriations shall be made for the purposes of the Maryland Medical Assistance Program. (5) For each fiscal year for which appropriations are made, 0.15% of the Fund shall be appropriated for the purposes of enforcement of Title 16, Subtitle 5 of the Business Regulation Article. (6) Any additional appropriations, not subject to paragraph (3), paragraph (4), or paragraph (5) of this subsection, may be made for any lawful purpose. (h) (1) The Fund shall include a separate account consisting of payments received by the State as a result of litigation by participating manufacturers related to the State's diligent enforcement of Title 16, Subtitle 4 of the Business Regulation Article. (2) (i) Except as provided in subparagraph (ii) of this paragraph, distributions from the separate account may be used only to supplant the General Fund appropriation to the historically black colleges and universities required under § 15-126 of the Education Article. (ii) For fiscal year 2026 only, distributions from the separate account may be used to support Medicaid expenses. (i) (1) The Fund shall include a separate account consisting of payments received by the State from any judgment, settlement, penalty, offer of compromise, or any other enforcement action related to the sale and marketing of electronic smoking devices. (2) Distributions from the separate account established under paragraph (1) of this subsection may be used, consistent with any other provision of State law, to supplement the General Fund appropriations designated for programs under subsection (f) of this section with the purpose of reducing the use of tobacco products by individuals under the age of 21 years. (j) For each program, project, or activity receiving funds appropriated under subsection (g)(3) of this section, the Governor shall: (1) develop appropriate statements of vision, mission, key goals, key objectives, and key performance indicators and report these statements in a discrete part of the State budget submission, which shall also provide data for key performance indicators; and (2) report annually, subject to § 2-1257 of the State Government Article, to the General Assembly no later than December 1 on: (i) total funds expended, by program and subdivision, in the prior fiscal year from the Fund established under this section; and (ii) the specific outcomes or public benefits resulting from that expenditure. §7-317. // EFFECTIVE JUNE 30, 2031 PER CHAPTERS 812 AND 813 OF 2024 // (a) There is a Cigarette Restitution Fund. (b) (1) The Fund is a continuing, nonlapsing fund that is not subject to § 7-302 of this subtitle. (2) Subject to subsections (h) and (i) of this section, there shall be credited to the Fund all revenues consisting of funds received by the State from any source resulting, directly or indirectly, from any judgment against or settlement with tobacco product manufacturers, tobacco research associations, or any other person in the tobacco industry relating to litigation, administrative proceedings, or any other claims made or prosecuted by the State to recover damages for violations of State law. (3) There shall be credited to the Fund all money collected under § 24-508 of the Health - General Article or § 5-608 of the Labor and Employment Article. (c) The Treasurer shall: (1) invest and reinvest the Fund in the same manner as other State funds; and (2) credit any investment earnings to the Fund. (d) Expenditures from the Fund shall be made by an appropriation in the annual State budget. (e) (1) The Fund shall be expended subject to any restrictions on its use or other limitations on its allocation that are: (i) expressly provided by statute; (ii) required as a condition of the acceptance of funds; or (iii) determined to be necessary to avoid recoupment by the federal government of money paid to the Fund. (2) Except as otherwise provided under subsection (h) of this section, disbursements from the Fund to programs funded by the State or with federal funds administered by the State shall be used solely to supplement, and not to supplant, funds otherwise available for the programs under federal or State law as provided in this section. (f) (1) The Cigarette Restitution Fund shall be used to fund: (i) the Tobacco Use Prevention and Cessation Program established under Title 13, Subtitle 10 of the Health - General Article; (ii) the Cancer Prevention, Education, Screening, and Treatment Program established under Title 13, Subtitle 11 of the Health - General Article; (iii) the activities of the Southern Maryland Agricultural Development Commission, in accordance with § 13-611 of the Economic Development Article; and (iv) other programs that serve the following purposes: 1. reduction of the use of tobacco products by individuals under the age of 21 years; 2. implementation of the Southern Maryland Regional Strategy-Action Plan for Agriculture adopted by the Tri-County Council for Southern Maryland with an emphasis on alternative crop uses for agricultural land now used for growing tobacco; 3. public and school education campaigns to decrease tobacco use with initial emphasis on areas targeted by tobacco manufacturers in marketing and promoting cigarette and tobacco products; 4. smoking cessation programs; 5. enforcement of the laws regarding tobacco sales; 6. the purposes of the Maryland Health Care Foundation under Title 20, Subtitle 5 of the Health - General Article; 7. primary health care in rural areas of the State and areas targeted by tobacco manufacturers in marketing and promoting cigarette and tobacco products; 8. prevention, treatment, and research concerning cancer, heart disease, lung disease, tobacco product use, and tobacco control, including operating costs and related capital projects; 9. substance abuse treatment and prevention programs; and 10. any other public purpose. (2) The provisions of this subsection may not be construed to affect the Governor's powers with respect to a request for an appropriation in the annual budget bill. (g) (1) Amounts may only be expended from the Fund through appropriations in the State budget bill as provided in this subsection. (2) The Governor shall include in the annual budget bill appropriations from the Fund equivalent to the lesser of $100,000,000 or 90% of the funds estimated to be available to the Fund in the fiscal year for which the appropriations are made. (3) For each fiscal year for which appropriations are made, at least 50% of the appropriations shall be made for those purposes enumerated in subsection (f)(1)(i), (ii), and (v)1 through 9 of this section subject to the requirement of subsection (e)(2) of this section. (4) (i) This paragraph does not apply in fiscal year 2026. (ii) For each fiscal year for which appropriations are made, at least 30% of the appropriations shall be made for the purposes of the Maryland Medical Assistance Program. (5) For each fiscal year for which appropriations are made, 0.15% of the Fund shall be appropriated for the purposes of enforcement of Title 16, Subtitle 5 of the Business Regulation Article. (6) Any additional appropriations, not subject to paragraph (3), paragraph (4), or paragraph (5) of this subsection, may be made for any lawful purpose. (h) (1) The Fund shall include a separate account consisting of payments received by the State as a result of litigation by participating manufacturers related to the State's diligent enforcement of Title 16, Subtitle 4 of the Business Regulation Article. (2) (i) Except as provided in subparagraph (ii) of this paragraph, distributions from the separate account may be used only to supplant the General Fund appropriation to the historically black colleges and universities required under § 15-126 of the Education Article. (ii) For fiscal year 2026 only, distributions from the separate account may be used to support Medicaid expenses. (i) (1) The Fund shall include a separate account consisting of payments received by the State from any judgment, settlement, penalty, offer of compromise, or any other enforcement action related to the sale and marketing of electronic smoking devices. (2) Distributions from the separate account established under paragraph (1) of this subsection may be used, consistent with any other provision of State law, to supplement the General Fund appropriations designated for programs under subsection (f) of this section with the purpose of reducing the use of tobacco products by individuals under the age of 21 years. (j) For each program, project, or activity receiving funds appropriated under subsection (g)(3) of this section, the Governor shall: (1) develop appropriate statements of vision, mission, key goals, key objectives, and key performance indicators and report these statements in a discrete part of the State budget submission, which shall also provide data for key performance indicators; and (2) report annually, subject to § 2-1257 of the State Government Article, to the General Assembly no later than December 1 on: (i) total funds expended, by program and subdivision, in the prior fiscal year from the Fund established under this section; and (ii) the specific outcomes or public benefits resulting from that expenditure.
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