70th OREGON LEGISLATIVE ASSEMBLY--1999 Regular Session
Enrolled
House Bill 2007
Sponsored by Representatives SNODGRASS, HARPER, Senators ADAMS,
DERFLER; Representatives PATRIDGE, WILLIAMS
CHAPTER ................
AN ACT
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.
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(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
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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
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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 held throughout this state. + }
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Enrolled House Bill 2007 (HB 2007-BCCA) Page 4
Passed by House June 10, 1999
Repassed by House July 21, 1999
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate July 9, 1999
Repassed by Senate July 21, 1999
...........................................................
President of Senate
Enrolled House Bill 2007 (HB 2007-BCCA) Page 5
Referred to People
Filed in Office of Secretary of State:
......M.,............., 1999
...........................................................
Secretary of State
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