11-300. Tobacco settlement agreement; decreased
payments; county contribution


A. If the total of the initial payment, annual payment and strategic contribution
payment, as these terms are prescribed by sections IX(b) and IX(c) of the master
settlement agreement entered into on November 23, 1998 between this state and certain
United States tobacco product manufacturers, in any fiscal year is less than sixty-six
per cent of the original amount identified in that agreement, and the state has used all
previous tobacco settlement payments to administer and provide health care, in the
following fiscal year the counties shall contribute an amount that equals thirty-three
per cent of the difference between the actual payment and sixty-six per cent of that
original amount identified for each year of the master settlement agreement. The staff of
the joint legislative budget committee shall calculate the total county contribution
pursuant to this subsection.


B. The state shall use monies paid by the counties pursuant to subsection A of this
section to provide indigent health care services. If the state does not use all
settlement payments for health care costs, the counties are not required to provide
monies pursuant to this section.


C. A county's share of the payments prescribed pursuant to subsection A of this
section is the percentage of that county's current population to the state's current
population. The staff of the joint legislative budget committee shall calculate each
county's contribution. For the purposes of this subsection, "current population" means
the population estimated by the department of economic security as of July 1 of the
calendar year that precedes the beginning of a fiscal year.


D. The state treasurer shall withhold the amount owed by a county from any payments
required to be made by the state treasurer to that county pursuant to section 42-5029,
subsection D, paragraph 2 after any amounts withheld for the county long-term care
contribution or the county administration contribution pursuant to section 11-292,
subsection O. If the monies the state treasurer withholds are insufficient to meet that
county's funding requirements as specified in this section, the state treasurer shall
withhold from any other monies payable to that county from whatever state funding source
is available an amount necessary to fulfill that county's requirements. The state
treasurer may not withhold distribution from the highway user revenue fund pursuant to
title 28, chapter 18, article 2.


E. On or before the fifth day of each month each county shall pay to the state
treasurer an amount equal to one-twelfth of the total monies prescribed pursuant to this
section. The state treasurer shall deposit these monies in the budget neutrality
compliance fund established by section 36-2928. On request from the director of the
Arizona health care cost containment system administration, the state treasurer shall
require a county to make up to three months' payments in advance.