HB 494 revises how Montana distributes tobacco settlement proceeds between two existing state special revenue accounts. Under current law, 32% of annual tobacco settlement receipts are directed to tobacco disease prevention programs and 17% are directed to the account used to match federal funding for the Children’s Health Insurance Program (CHIP). The bill swaps those percentages so that 17% would go to tobacco prevention and 32% would go to the CHIP-related account.
The bill also keeps the existing framework for how the money may be used. Tobacco prevention funds would continue to support statewide programs aimed at preventing youth tobacco use, helping adults quit, and funding the tobacco prevention advisory board, while the CHIP-related funds would continue to be used as matching money to draw down the maximum amount of federal CHIP funds. Any money in the designated account that is not appropriated within two years would still be transferred to the trust fund. The bill would take effect July 1, 2025.
Impact
HB 494 would amend section 17-6-606, MCA, changing the statutory allocation of tobacco settlement proceeds and identifying the state special revenue account in 53-4-1115 as the recipient of the larger share. In practical terms, it would reduce the share dedicated to tobacco prevention programs and increase the share available for CHIP matching funds, affecting the funding balance between public health prevention efforts and children’s health insurance financing.
Sentiment
The available voting history suggests the bill was not controversial in committee at the point reflected in the record, as the House Human Services Committee voted 18-0 to table it. There are no committee transcripts provided, so there is no recorded debate to indicate broader support or opposition. The final status shows the bill died in process, which suggests it did not advance beyond committee consideration.
Contention
The main policy tension in HB 494 is the tradeoff between tobacco prevention funding and CHIP matching funds. Supporters of shifting a larger share to CHIP would likely emphasize maximizing federal health coverage dollars for children, while opponents of reducing the prevention share would likely argue that tobacco control programs and cessation efforts should retain their current funding level. Because the bill was tabled unanimously, the record does not show a split vote, but the allocation change itself is the central point of contention.