- Introduced -

SB 594 - This act establishes the Tobacco Settlement Fund Commission and the Tobacco Settlement Fund. The Commission will be responsible for developing strategies regarding the utilization of tobacco settlement funds received by the state, approving programs, preparing an annual report, and disbursing tobacco settlement funds. The Commission will be comprised of twenty five members, including directors of departments, citizens, and non-voting, advisory members of the legislature.

An annual report regarding the impact of the use of tobacco settlement funds will be due no later than the first day of the first October following the initial receipt of any tobacco settlement funds by the state. The report will be due on the first of October each following year. The report shall include a description of actions taken by the commission, an accounting of fund disbursement and usage, a summary of recent health and law enforcement data, and a review of annual research relating to tobacco.

The Departments of Health, Mental Health, Social Services, Elementary and Secondary Education, and Public Safety shall create an interagency administrative body that will implement any program approved by the Commission. The delivery of goods and services for the programs will be provided through contracts issued by the interagency administrative body.

Any tobacco settlement funds received by the state shall be disbursed in the following manner:

1. Twenty-five percent for youth smoking prevention;

2. Fifteen percent for health care services to the uninsured;

3. Ten percent for treatment;

4. Ten percent for special populations;

5. Ten percent for deposit in the tobacco settlement endowment fund;

6. Eight percent for research;

7. Eight percent for public relations;

8. Four percent for technology;

9. Four percent for county health departments;

10. Three percent for administration; and

11. Three percent for enforcement.

This act also creates the Tobacco Settlement Endowment Fund in the State Treasury. After the 10th year of existence, any interest earned from the fund shall be used by the interagency administrative body. After the final payment of the tobacco settlement is received, the fund will be used as the primary source of revenue for the continuation of tobacco settlement programs. Fund moneys will not revert to the credit of the general revenue fund at the end of the biennium.

This bill is substantially similar to SB 223 (1999).

ERIN MOTLEY