OFA Bill Analysis

sHB 5020

AN ACT IMPLEMENTING THE GOVERNOR'S BUDGET RECOMMENDATIONS REGARDING THE TOBACCO AND HEALTH TRUST FUND.

SUMMARY:

By law, the Board of Trustees of the Tobacco and Health Trust Fund (THTF) must submit an annual report on its activities and accomplishments to the Joint Standing Committees on Appropriations and Public Health. The bill eliminates a mandate that this report be approved by each of the Board's seventeen trustees.

Commencing with the fiscal year ending June 30, 2009, the bill increases the amount subject to recommended disbursement by the Board by up to one-half of the annual disbursement from the Tobacco Settlement Fund to the THTF from the previous fiscal year, up to $ 6 million. Under law, the recommended disbursement is limited to the net earnings from the principal of the Fund. The bill makes a clarifying change, by stating that the net earnings are from the previous fiscal year.

EFFECTIVE DATE: July 1, 2008

BACKGROUND

Tobacco Settlement Fund

By law, disbursements from the Tobacco Settlement Fund (TSF) are as follows: (a) To the THTF, $ 12 million; (b) To the Biomedical Research Trust Fund, $ 4 million; (c) to the General Fund, the amount identified as “Transfer from TSF” in the General Fund revenue schedule adopted by the General Assembly; (d) to the Stem Cell Research Fund (until the fiscal year ending June 30, 2015), $ 10 million; (e) to the Department of Revenue Services, $ 100,000; (f) to the Office of the Attorney General, $ 25,000; and (g) any remainder to the THTF.

COMMITTEE ACTION

Appropriations Committee

Joint Favorable Substitute