§ 7-317
§7–317. IN EFFECT
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§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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