First Substitute H.B. 12

Representative Karen W. Morgan proposes the following substitute bill:

1 USE OF TOBACCO SETTLEMENT INTEREST
2 PROCEEDS
3 2002 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Karen W. Morgan
6 This act modifies the distribution of tobacco settlement funds. This act appropriates 50%
7 of the annual interest and dividends earned by the permanent state trust fund for tobacco
8 settlement monies to the Department of Health for alcohol, tobacco, and other drug
9 prevention, reduction, cessation, and control programs. This act contains a coordinating
10 clause.
11 This act affects sections of Utah Code Annotated 1953 as follows:
12 AMENDS:
13 63-97-301, as enacted by Chapter 351, Laws of Utah 2000
14 Be it enacted by the Legislature of the state of Utah:
15 Section 1. Section 63-97-301 is amended to read:
16 63-97-301. Permanent state trust fund.
17 (1) Until July 1, 2003, 50% of all funds of every kind that are received by the state that are
18 related to the settlement agreement that the state entered into with leading tobacco manufacturers
19 on November 23, 1998, shall be deposited into the permanent state trust fund created by and
20 operated under Utah Constitution Article XXII, Section 4.
21 (2) On and after July 1, 2003, 60% of all funds of every kind that are received by the state
22 that are related to the settlement agreement that the state entered into with leading tobacco
23 manufacturers on November 23, 1998, shall be deposited into the permanent state trust fund
24 created by and operated under Utah Constitution Article XXII, Section 4.
25 (3) Funds in the permanent state trust fund shall be deposited or invested pursuant to

26 Section 51-7-12.1 .
27 (4) (a) Fifty percent of the interest and dividends earned annually from the permanent state
28 trust fund shall remain in the fund to be treated as principal.
29 (b) [Any] Beginning fiscal year 2002-03, any annual interest or dividends earned from the
30 permanent state trust fund that remain after Subsection (4)(a) [may] shall be appropriated [by the
31 Legislature] on an ongoing basis from the permanent state trust fund to the Department of Health
32 for the purposes set forth in Subsection 63-97-201 (4)(b).
33 Section 2. Coordination clause.
34 If this bill and H.B. 53, Technical Amendments to Tobacco Settlement Trust fund both pass
35 it is the intent of the Legislature that the Office of Legislative Research and General Counsel shall
36 prepare the database so that:
37 (1) Subsection 63-97-301 (4)(b) shall read:
38 (b) [Any] Beginning fiscal year 2002-03, any annual interest or dividends earned from the
39 permanent state trust fund that remain in the General Fund after Subsection (4)(a) [may] shall be
40 appropriated [by the Legislature] on an ongoing basis from the General Fund to the Department
41 of Health for the purposes set forth in Subsection 63-97-201 (4)(b).