Download Zipped Introduced WP 9 HB2005.ZIP 5,773 Bytes
[Status][Bill Documents][Fiscal Note][Bills Directory]

H.B. 2005

             1     

TECHNICAL AMENDMENTS TO TOBACCO

             2     
SETTLEMENT TRUST FUND

             3     
2001 SECOND SPECIAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Karen W. Morgan

             6      This act makes technical amendments to the distribution of the tobacco settlement funds
             7      necessary to comply with Utah Constitution Article XXII, Section 4. This act provides an
             8      immediate effective date and has retrospective operation.
             9      This act affects sections of Utah Code Annotated 1953 as follows:
             10      AMENDS:
             11          63-97-301, as enacted by Chapter 351, Laws of Utah 2000
             12      Be it enacted by the Legislature of the state of Utah:
             13          Section 1. Section 63-97-301 is amended to read:
             14           63-97-301. Permanent state trust fund.
             15          (1) Until July 1, 2003, 50% of all funds of every kind that are received by the state that are
             16      related to the settlement agreement that the state entered into with leading tobacco manufacturers
             17      on November 23, 1998, shall be deposited into the permanent state trust fund created by and
             18      operated under Utah Constitution Article XXII, Section 4.
             19          (2) On and after July 1, 2003, 60% of all funds of every kind that are received by the state
             20      that are related to the settlement agreement that the state entered into with leading tobacco
             21      manufacturers on November 23, 1998, shall be deposited into the permanent state trust fund
             22      created by and operated under Utah Constitution Article XXII, Section 4.
             23          (3) Funds in the permanent state trust fund shall be deposited or invested pursuant to
             24      Section 51-7-12.1 .
             25          (4) (a) [Fifty percent of] In accordance with Utah Constitution Article XXII, Section 4, the
             26      interest and dividends earned annually from the permanent state trust fund shall [remain in the
             27      fund to] be deposited in the General Fund. Beginning fiscal year 2001-02 there shall be transferred


             28      on an ongoing basis from the General Fund to the permanent state trust fund created under Utah
             29      Constitution Article XXII, Section 4, an amount equal to 50% of the interest and dividends earned
             30      annually from the permanent state trust fund. The amount transferred into the fund under this
             31      Subsection (4)(a) shall be treated as principal.
             32          (b) Any annual interest or dividends earned from the permanent state trust fund that remain
             33      in the General Fund after Subsection (4)(a) may be appropriated by the Legislature.
             34          Section 2. Effective date and retrospective operation.
             35          If approved by two-thirds of all the members elected to each house, this act takes effect
             36      upon approval by the governor, or the day following the constitutional time limit of Utah
             37      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the
             38      date of veto override, except Subsection 63-97-301 (4)(a) shall have retrospective operation to
             39      January 1, 2001.




Legislative Review Note
    as of 9-25-01 8:04 PM



The amendments in Subsection 63-97-301(4) of this bill address a constitutional conflict that
happened when the permanent state trust fund was approved by the voters in November 2000 and
became law on January 1, 2001. That new constitutional provision requires the income from the
state trust fund to be deposited into the state's General Fund. The current statute does not deposit
the interest income into the General Fund. The current statute retains fifty percent of the interest
and dividends in the state trust fund to be treated as principal. The amendment to Subsection
63-97-301(4) in this bill maintain the intent of the 2000 Legislature to retain fifty percent of the
interest as principal, but does so by transferring it on an ongoing basis from the General Fund to
the permanent state trust fund.

Office of Legislative Research and General Counsel


[Bill Documents][Bills Directory]