House OKs special account for tobacco funds

Legislation creating a special account for millions of dollars in future payments received by the CNMI under the tobacco settlement agreement has passed the House of Representatives and is now awaiting action in the Senate.

To determine how the funds will be spent, lawmakers will have to appropriate the money to departments or agencies of the government that have established spending plan, based on the measure.

Sponsored by Health and Welfare Committee chair Rep. Malua T. Peter, HB 12-290 was drafted to ensure appropriation of the $30 million share of the Commonwealth in the $206 billion settlement reached by U.S. states and territories with tobacco companies.

Its passage followed discussion with Finance Sec. Lucy Dlg. Nielsen who backed the move in view of the need to set aside the yearly payment for programs benefiting island residents.

The CNMI has received more than $800,000 since December 1999 which were mingled with the general funds to cut deficit of the government, according to the finance chief.

Because of the failure by the Legislature earlier to appropriate the money, Ms. Peter proposed the bill to ensure that future payments will be used to finance programs, such as smoking prevention and in treating sick smokers.

Under the deal, the islands stand to receive payments ranging from half-a-million dollars to $700,000 annually from the cigarette manufacturers beginning 1999 until 2024.

The Department of Public Health has drafted a strategic plan to make use of the tobacco money and has asked the House Ways and Means Committee to consider it when allocating the funds.

The committee has included the spending plan as part of the measure to ensure that DPH is given priority when the Legislature appropriates it each fiscal year.

According to Health Sec. Joseph Kevin Villagomez, a high percentage of deaths in the CNMI are caused by diseases related to smoking. Lung cancer rates for Chamorro males, for example, already exceeded the national average.

DPH has estimated that 18 percent of the total cost of hospital days in 1994 for Chamorro and Carolinian patients can be attributed to smoking. This does not even include the additional costs of outpatient visits, emergency services, medications or off-island referrals, Mr. Villagomez said.

The department has formed an ad hoc committee to establish a tobacco control and prevention program for the CNMI with representatives from various government agencies such as the Public School System, Youth Affairs, non-profit organizations and DPH.