HCS HB 430 & 648 -- TOBACCO SETTLEMENT TRUST FUND (McLuckie)

This substitute creates in the state treasury the Missouri
Tobacco Settlement Trust Fund for the purposes of funding anti--
smoking education and health care.  No money may be expended
from the fund except by appropriation by the General Assembly.

The substitute authorizes the State Treasurer to deposit all
moneys into the fund received by the State of Missouri pursuant
to the Master Settlement Agreement entered into on November 23,
1998, by the state and leading U.S. tobacco product
manufacturers.

The substitute requires the State Treasurer to invest the moneys
in the Missouri Tobacco Settlement Trust Fund in a manner
similar to the investment of surplus state funds according to
Missouri statutes.  The moneys in the fund will not revert to
the credit of the General Revenue Fund at the end of the
biennium.  All earnings from the investment of moneys in the
Missouri Tobacco Settlement Trust Fund are to be used for anti--
smoking education and health care.

FISCAL NOTE:  Net Income to Missouri Tobacco Settlement Trust
Fund of $0 in FY 2000, $200,000,000 in FY 2001, and $200,000,000
in FY 2002.  Net Loss to General Revenue Fund of $0 in FY 2000,
$200,000,000 in FY 2001, and $200,000,000 in FY 2002.

HCS HB 430 & 648 -- TOBACCO SETTLEMENT TRUST FUND

SPONSOR:  McLuckie

COMMITTEE ACTION:  Voted "do pass" by the Committee on Missouri
Tobacco Settlement by a vote of 14 to 1.

This substitute creates in the state treasury the Missouri
Tobacco Settlement Trust Fund for the purposes of funding anti--
smoking education and health care.

The substitute authorizes the State Treasurer to deposit all
moneys into the fund received by the State of Missouri pursuant
to the Master Settlement Agreement entered into on November 23,
1998, by the state and leading U.S. tobacco product manufactures.

The substitute requires the State Treasurer to invest the moneys
in the Missouri Tobacco Settlement Trust Fund in a manner
similar to the investment of surplus state funds according to
Missouri statutes.  The moneys in the fund will not revert to
the credit of the General Revenue Fund at the end of the
biennium.  All earnings from the investment of moneys in the
Missouri Tobacco Settlement Trust Fund are to be used for anti--
smoking education and health care.

FISCAL NOTE:  Net Income to Missouri Tobacco Settlement Trust
Fund of $0 in FY 2000, $0 to $200,000,000 in FY 2001, and $0 to
$200,000,000 in FY 2002.  Net Loss to General Revenue Fund of $0
in FY 2000, $200,000,000 in FY 2001, and $200,000,000 in FY 2002.

PROPONENTS:  Supporters say that this bill will provide a
depository for funds received from the tobacco Master Settlement
Agreement.

Testifying for the bill were Representatives McLuckie and
Hanaway; Office of Administration; Missouri Hospital
Association; AARP; and Mark Ellinger.

OPPONENTS:  There was no opposition voiced to the committee.

Bill Tucker, Assistant Director of Research

HB 430 -- Missouri Tobacco Settlement Trust Fund

Co-Sponsors:  Gaw, Kreider

This bill creates in the state treasury the Missouri Tobacco
Settlement Trust Fund for the purposes of funding anti-smoking
education and health care.

The bill authorizes the State Treasurer to deposit all moneys
received into the fund which reimburses the State of Missouri
for  cost and future costs associated with the Medicaid
program.  The  proceeds are from any award or settlement
resulting from a dispute between the State of Missouri and any
company which manufactures or sells tobacco or tobacco products.

The bill requires the State Treasurer to invest the moneys in
the Missouri Tobacco Settlement Trust Fund in a manner similar
to the investment of surplus state funds according to Missouri
statutes.  The moneys in the fund will not revert to the credit
of the General Revenue Fund at the end of the biennium.  All
earnings from the investment of moneys in the Missouri Tobacco
Settlement Trust Fund are to be used for anti-smoking education
and health care.