(Caution: 1998 Prop. 105 applies)

A. In addition to the monies deposited pursuant to section 36-770, twenty-three cents of each dollar in the tobacco tax and health care fund shall be deposited in the health education account for programs for the prevention and reduction of tobacco use, through public health education programs, including community based education, cessation, evaluation and other programs to discourage tobacco use among the general population as well as minors and culturally diverse populations.

B. The department of health services shall administer the account.

C. Except as provided in subsection D of this section, monies that are deposited in the health education account:

1. Shall be used to supplement monies that are appropriated by the legislature for health education purposes and shall not be used to supplant those appropriated monies.

2. Shall be spent for the following purposes:

(a) Contracts with county health departments, qualifying community health centers as defined in Section 36-2907.06, Indian tribes, accredited schools, nonprofit organizations, community colleges and universities for education programs related to preventing and reducing tobacco use.

(b) Administrative expenditures related to implementing and operating a program developed pursuant to subdivision (a) to award and oversee contracts for education programs including obtaining expert services to assist in evaluating requests for proposals and responses to those requests.

(c) Department of health services expenditures for developing and delivering education programs that are designed to prevent or reduce tobacco use including radio, television or print media costs. When contracting for the development and production of original advertising materials, the department shall require advertising, production and editorial firms to use their best efforts to employ or contract with residents of this state to manage, produce and edit the original advertising. The department shall report annually by December 1 to the governor, the president of the senate and the speaker of the house of representatives regarding instances when the department did not employ or contract with residents of this state, including the reasons for failing to do so.

(d) The evaluations required by subsection F of this section.

D. The department of health services shall use monies deposited in the account pursuant to section 36-770 for the prevention and early detection of the four leading disease related causes of death in this state, as periodically determined by the centers for disease control and prevention, or its successor agency. Initially, these are cancer, heart disease, stroke and pulmonary disease. The monies shall only be used to supplement monies that are appropriated by the legislature and shall not be used to supplant those appropriated monies.

E. Monies from the health education account shall not be spent for lobbying activities involving elected officials or political campaigns for individuals or any ballot measure.

F. The department of health services shall evaluate the programs established pursuant to subsection C, paragraph 2 of this section and shall biennially submit a written report of its findings to the governor, the president of the senate and the speaker of the house of representatives. The department of health services shall provide a copy of each report to the secretary of state and the director of the Arizona state library, archives and public records. The department of health services shall submit its first report on or before November 15, 2004. The first report shall include data beginning in fiscal year 2001-2002.