Lawmakers hear broad opposition as sponsor seeks to reallocate Montana's tobacco settlement funds

Representative Ron Marshall (House District 87) opened the hearing on House Bill 494 by reviewing the 1998 national tobacco Master Settlement Agreement and Montana's original allocation plan. Marshall said Montana initially received roughly $3.032 billion and described the voter-approved breakdown, including a 32% earmark for tobacco prevention under I-146 (2002). He argued falling MSA receipts tied to lower smoking rates create fiscal pressure and said HB 494 is intended to reexamine how those dollars are allocated.

Marshall summarized the proposed changes and presented an amendment during the hearing that he said "goes back to the original plan, 32%," but which reallocates that 32% among subprograms (he listed percentage splits for chronic disease, home visiting, hospital discharge, Montana Tobacco Use program, Department of Justice and Department of Revenue).

The bill drew heavy opposition. Multiple youth witnesses urged rejection: "I don't support this bill because I believe the money from the master settlement agreement is best spent on tobacco prevention," said Natalie Bohrer, a 16-year-old student from Powell County. Other young witnesses and youth coalition members described the role prevention programs and quit lines play in schools and communities.

Tribal and public-health witnesses emphasized cultural and health impacts. Alyssa Snow, representing Fort Belknap Indian Community, Blackfeet Tribe and Chippewa Cree of Rocky Boy, said tribal tobacco has ceremonial use but that commercial tobacco addiction disproportionately harms Native Americans. Snow noted past program successes and urged the committee to oppose the bill.

Public health officials, clinicians and advocacy groups presented evidence-based objections. Stacy Campbell, Division Administrator for Public Health and Safety at DPHHS, said the Department stands "in opposition to House Bill 494 and its amendments," and provided dollar estimates of the amendment's effects: she testified the proposed amendments would cut tobacco prevention funding by 66% (about $3,500,000), and that the original bill would reduce tobacco prevention and chronic disease prevention funding by 47% (about $4,000,000). Campbell referenced state law and the voter initiative that codified the 32% earmark (she cited MCA provisions and I-146) and warned cuts would "significantly impair the department's ability to deliver a comprehensive tobacco control program."

Witnesses from the American Heart Association, American Cancer Society Cancer Action Network, the American Lung Association, the Montana Medical Association, and local health departments described how MSA dollars currently support quit lines, local tobacco education specialists, school- and community-based prevention, chronic disease programs, and hospital-discharge data systems. Lauren Bolton, Anaconda Deer Lodge County Public Health Director, said the proposed reduction could cut more than half of her department's funding and endanger staff and services that link to WIC, family planning and immunizations.

DPHHS and tobacco program staff detailed program functions and outcomes. Nicole Aune, section supervisor for the Montana Tobacco Use Prevention Section, described comprehensive programming (prevention, secondhand smoke elimination, cessation promotion and disparity reduction), local mass-reach communications, school presentations and enforcement of the Clean Indoor Air Act. She reported participants who completed three or more coaching calls in the pregnancy program reported quit rates of 68 percent and that over 540 pregnant women have participated since 2013.

Committee members repeatedly asked for clearer financial documentation and for a comprehensive accounting of how MSA dollars flow to recipients (county health departments, tribes, hospitals, and certain contracted entities). Members expressed confusion about differing handouts and figures presented in the hearing and several suggested requesting a study or legislative audit to trace funding flows and matching grants before advancing policy changes. Chair Marshall signaled openness to pursuing a study and to further discussion the following day. No final vote was taken on HB 494; the committee closed the hearing and moved to additional business.