federal excise tax on cigarettes.
         (5) (a) There is created within the General Fund a restricted account known as the "Cigarette Tax Restricted Account."
         (b) Beginning on July 1, 1998, $250,000 of the revenues generated by the increase in the cigarette tax under this section enacted during the 1997 Annual General Session shall be annually deposited into the account.
         (c) The Department of Health shall expend the funds deposited in the account under Subsection (5)(b) for a tobacco prevention and control media campaign targeted towards children.
         (d) The following revenue generated from the tax increase imposed under Subsection (1) during the 2002 General Session shall be deposited in the Cigarette Tax Restricted Account:
         (i) 22% of the revenue to be annually appropriated to the Department of Health for tobacco prevention, reduction, cessation, and control programs;
         (ii) 15% of the revenue to be annually appropriated to the University of Utah Health Sciences Center for the Huntsman Cancer Institute for cancer research; and
         (iii) 21% of the revenue to be annually appropriated to the University of Utah Health Sciences Center for medical education at the University of Utah School of Medicine.
         (e) Any balance remaining in the Cigarette Tax Restricted Account at the end of the fiscal year shall be appropriated during the next fiscal year for the purposes set forth in Subsections (5)(d)(i) through (5)(d)(iii) in proportion to the amount of revenue deposited into the account for each purpose.
         (f) The Legislature shall give particular consideration to appropriating any revenues resulting from the change in tax rates under Subsection (2) adopted during the 2002 Annual General Session and not otherwise appropriated pursuant to Subsection (5)(d) to enhance Medicaid provider reimbursement rates and medical coverage for the uninsured.
         (g) Any program or entity that receives funding under Subsection (5)(d) shall provide an annual report to the Health and Human Services Interim Committee no later that September 1 of each year. The report shall include:
         (i) the amount funded;
         (ii) the amount expended;
         (iii) a description of the effectiveness of the program; and
         (iv) if the program is a tobacco cessation program, the report

required in Section 63-97-401 .
         (h) The revenue generated from the tax increase imposed under Subsection (1) during the 2004 General Session shall be deposited into the Cigarette Tax Restricted Account and shall be annually appropriated to the Department of Health for the purpose of eliminating the Medicaid asset test in compliance with Section 26-18-3.2 . "
    
    The motion passed unanimously with Sen. Stephenson absent for the vote.

    Speaking in support of the bill were: Michael Hales, Director, CHIP, Utah Department of     Health; Karen Crompton, Executive Director, Voices for Utah Children; Pamela Silberman,     Utah Issues; Judi Hilman, Research Director, Utah Issues; Kris Fausen, Co-director,     Legislative Coalition for People with Disabilities; Jack Tanner, Executive Director,     Healthcare Network; and Kiric Olsen, CEO, Molina Healthcare.

     MOTION: Sen. Hale moved to pass the bill out favorably as amended.

    The motion passed with Sens. Killpack, Walker, Hale and Mayne voting in favor of the bill,     and Sens. Eastman and Stephenson voting in opposition.

     MOTION: Sen. Walker moved to adjourn.

The motion passed unanimously.

    Chair Killpack adjourned the meeting at 5:35 p.m.

    

    

                ___________________________________
     Sen. Sheldon L. Killpack, Committee Chair