H.B. 114

1

CHILDREN'S HEALTH CARE COVERAGE
2 AMENDMENTS
3 2005 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: David L. Hogue
6
7 LONG TITLE
8 General Description:
9 This bill amends the permanent state trust fund for tobacco settlement monies and the
10 Tobacco Settlement Restricted Account to increase funding for the Children's Health
11 Insurance Program.
12 Highlighted Provisions:
13 This bill:
14 . increases the amount annually appropriated from the Tobacco Settlement Restricted
15 Account to the Department of Health for the Children's Health Insurance Program
16 from $7,000,000 to $10,300,000; and
17 . modifies the distribution of tobacco settlement monies between the Tobacco
18 Settlement Restricted Account and the permanent state trust fund created by Utah
19 Constitution Article XXII, Section 4.
20 Monies Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 None
24 Utah Code Sections Affected:
25 AMENDS:
26 63-97-201, as last amended by Chapters 353 and 365, Laws of Utah 2004
27 63-97-301, as last amended by Chapters 353 and 365, Laws of Utah 2004

28
29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 63-97-201 is amended to read:
31 63-97-201. Creation of Tobacco Settlement Restricted Account.
32 (1) There is created within the General Fund a restricted account known as the
33 "Tobacco Settlement Restricted Account."
34 (2) The account shall earn interest.
35 (3) The account shall consist of:
36 (a) until July 1, 2003, 50% of all funds of every kind that are received by the state that
37 are related to the settlement agreement that the state entered into with leading tobacco
38 manufacturers on November 23, 1998;
39 (b) on and after July 1, 2003 and until July 1, 2004, 80% of all funds of every kind that
40 are received by the state that are related to the settlement agreement that the state entered into
41 with leading tobacco manufacturers on November 23, 1998;
42 (c) on and after July 1, 2004 and until July 1, [2006] 2005, 70% of all funds of every
43 kind that are received by the state that are related to the settlement agreement that the state
44 entered into with leading tobacco manufacturers on November 23, 1998;
45 (d) on and after July 1, 2005 and until July 1, 2007, 75% of all funds of every kind that
46 are received by the state that are related to the settlement agreement that the state entered into
47 with leading tobacco manufacturers on November 23, 1998;
48 [(d)] (e) on and after July 1, [2006, 55%] 2007, 60% of all funds of every kind that are
49 received by the state that are related to the settlement agreement that the state entered into with
50 leading tobacco manufacturers on November 23, 1998; and
51 [(e)] (f) interest earned on the account.
52 (4) To the extent that funds will be available for appropriation in a given fiscal year,
53 those funds shall be appropriated from the account in the following order:
54 (a) [$7,000,000] $10,300,000 to the Department of Health for the Children's Health
55 Insurance Program created in Section 26-40-103 and for restoration of dental benefits in the
56 Children's Health Insurance Program;
57 (b) $4,000,000 to the Department of Health for alcohol, tobacco, and other drug
58 prevention, reduction, cessation, and control programs that promote unified messages and

59 make use of media outlets, including radio, newspaper, billboards, and television, and with a
60 preference in funding given to tobacco-related programs;
61 (c) $193,700 to the Administrative Office of the Courts and $1,296,300 to the
62 Department of Human Services for the statewide expansion of the drug court program;
63 (d) $77,400 to the Board of Pardons, $81,700 to the Department of Corrections, and
64 $350,900 to the Department of Human Services for a drug board pilot program;
65 (e) $4,000,000 to the State Board of Regents for the University of Utah Health
66 Sciences Center to benefit the health and well-being of Utah citizens through in-state research,
67 treatment, and educational activities; and
68 (f) any remaining funds as directed by the Legislature through appropriation.
69 (5) (a) If tobacco funds in dispute for attorneys fees are received by the state, those
70 funds shall be divided and deposited in accordance with Subsection (3) and Section 63-97-301 .
71 (b) The amount appropriated from the Tobacco Settlement Restricted Account to the
72 Department of Health for alcohol, tobacco, and other drug programs described in Subsection
73 (4)(b), including the funding preference for tobacco-related programs, shall be increased by up
74 to $2,000,000 in a given fiscal year to the extent that funds in dispute for attorneys fees are
75 available to the state for appropriation from the account.
76 (6) Each state agency identified in Subsection (4) shall provide an annual report on the
77 program and activities funded under Subsection (4) to:
78 (a) the Health and Human Services Interim Committee no later than September 1; and
79 (b) the Health and Human Services Joint Appropriations Subcommittee.
80 Section 2. Section 63-97-301 is amended to read:
81 63-97-301. Permanent state trust fund.
82 (1) Until July 1, 2003, 50% of all funds of every kind that are received by the state that
83 are related to the settlement agreement that the state entered into with leading tobacco
84 manufacturers on November 23, 1998, shall be deposited into the permanent state trust fund
85 created by and operated under Utah Constitution Article XXII, Section 4.
86 (2) On and after July 1, 2003 and until July 1, 2004 20% of the funds of any kind
87 received by the state that are related to the settlement agreement that the state entered into with
88 leading tobacco manufacturers shall be deposited into the permanent state trust fund created by
89 and operated under Utah Constitution Article XXII, Section 4.

90 (3) On and after July 1, 2004 and until July 1, 2005, 30% of all funds of any kind
91 received by the state that are related to the settlement agreement that the state entered into with
92 leading tobacco manufacturers shall be deposited into the General Fund Budget Reserve
93 Account created in Section 63-38-2.5 .
94 (4) On and after July 1, 2005 and until July 1, [2006] 2007, [30%] 25% of all funds of
95 any kind received by the state that are related to the settlement agreement that the state entered
96 into with leading tobacco manufacturers shall be deposited into the permanent state trust fund
97 created by and operated under Utah Constitution Article XXII, Section 4.
98 (5) On and after July 1, [2006, 45%] 2007, 40% of all funds of every kind that are
99 received by the state that are related to the settlement agreement that the state entered into with
100 leading tobacco manufacturers on November 23, 1998, shall be deposited into the permanent
101 state trust fund created by and operated under Utah Constitution Article XXII, Section 4.
102 (6) Funds in the permanent state trust fund shall be deposited or invested pursuant to
103 Section 51-7-12.1 .
104 (7) (a) In accordance with Utah Constitution Article XXII, Section 4, the interest and
105 dividends earned annually from the permanent state trust fund shall be deposited in the General
106 Fund. There shall be transferred on an ongoing basis from the General Fund to the permanent
107 state trust fund created under Utah Constitution Article XXII, Section 4, an amount equal to
108 50% of the interest and dividends earned annually from the permanent state trust fund. The
109 amount transferred into the fund under this Subsection (7)(a) shall be treated as principal.
110 (b) Any annual interest or dividends earned from the permanent state trust fund that
111 remain in the General Fund after Subsection (7)(a) may be appropriated by the Legislature.
112 (c) Any realized or unrealized gains or losses on investments in the permanent state
113 trust fund shall remain in the permanent state trust fund.




Legislative Review Note
as of 1-26-05 8:09 AM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel