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First Substitute H.B. 444
8 LONG TITLE
9 General Description:
10 This bill makes adjustments in the amounts provided to the Departments of Health and
11 Human Services, and the Administrative Office of the Courts from Tobacco Settlement
13 Highlighted Provisions:
14 This bill:
15 . shifts monies between programs in the Departments of Health and Human Services
16 from the Tobacco Settlement Funds and the cigarette tax;
17 . eliminates the drug board pilot program in the Department of Human Services; and
18 . increases funding to the Department of Health for the Children's Health Insurance
20 Monies Appropriated in this Bill:
22 Other Special Clauses:
23 This bill takes effect on July 1, 2009.
24 This bill coordinates with H.B. 302, Distribution of Tobacco Settlement Monies
26 Utah Code Sections Affected:
28 51-9-201, as last amended by Laws of Utah 2008, Chapter 250 and renumbered and
29 amended by Laws of Utah 2008, Chapter 382
30 59-14-204, as last amended by Laws of Utah 2008, Chapter 382
32 78A-5-202, as renumbered and amended by Laws of Utah 2008, Chapter 3
34 Be it enacted by the Legislature of the state of Utah:
35 Section 1. Section 51-9-201 is amended to read:
36 51-9-201. Creation of Tobacco Settlement Restricted Account.
37 (1) There is created within the General Fund a restricted account known as the
38 "Tobacco Settlement Restricted Account."
39 (2) The account shall earn interest.
40 (3) The account shall consist of:
41 (a) until July 1, 2003, 50% of all funds of every kind that are received by the state that
42 are related to the settlement agreement that the state entered into with leading tobacco
43 manufacturers on November 23, 1998;
44 (b) on and after July 1, 2003 and until July 1, 2004, 80% of all funds of every kind that
45 are received by the state that are related to the settlement agreement that the state entered into
46 with leading tobacco manufacturers on November 23, 1998;
47 (c) on and after July 1, 2004 and until July 1, 2005, 70% of all funds of every kind that
48 are received by the state that are related to the settlement agreement that the state entered into
49 with leading tobacco manufacturers on November 23, 1998;
50 (d) on and after July 1, 2005 and until July 1, 2007, 75% of all funds of every kind that
51 are received by the state that are related to the settlement agreement that the state entered into
52 with leading tobacco manufacturers on November 23, 1998;
53 (e) on and after July 1, 2007, 60% of all funds of every kind that are received by the
54 state that are related to the settlement agreement that the state entered into with leading tobacco
55 manufacturers on November 23, 1998; and
56 (f) interest earned on the account.
57 (4) To the extent that funds will be available for appropriation in a given fiscal year,
58 those funds shall be appropriated from the account in the following order:
59 (a) [
60 Insurance Program created in Section 26-40-103 and for restoration of dental benefits in the
61 Children's Health Insurance Program;
62 (b) [
63 other drug prevention, reduction, cessation, and control programs that promote unified
64 messages [
65 television, [
66 which shall be used to continue the Synar Statewide Compliance Testing Program;
69 the drug court program;
73 Sciences Center to benefit the health and well-being of Utah citizens through in-state research,
74 treatment, and educational activities; and
76 (5) (a) If tobacco funds in dispute for attorney fees are received by the state, those
77 funds shall be divided and deposited in accordance with Subsection (3) and Section 51-9-202 .
78 (b) The amount appropriated from the Tobacco Settlement Restricted Account to the
79 Department of Health for alcohol, tobacco, and other drug programs described in Subsection
80 (4)(b), including the funding preference for tobacco-related programs, shall be increased by up
81 to $2,000,000 in a given fiscal year to the extent that funds in dispute for attorney fees are
82 available to the state for appropriation from the account.
83 (6) Each state agency identified in Subsection (4) shall provide an annual report on the
84 program and activities funded under Subsection (4) to:
85 (a) the Health and Human Services Interim Committee no later than September 1; and
86 (b) the Health and Human Services Appropriations Subcommittee.
87 Section 2. Section 59-14-204 is amended to read:
88 59-14-204. Tax basis -- Rate -- Future increase -- Restricted account -- Use of
90 (1) Except for cigarettes described under Subsection 59-14-210 (3), there is levied a tax
91 upon the sale, use, storage, or distribution of cigarettes in the state.
92 (2) The rates of the tax levied under Subsection (1) are:
93 (a) 3.475 cents on each cigarette, for all cigarettes weighing not more than three
94 pounds per thousand cigarettes; and
95 (b) 4.075 cents on each cigarette, for all cigarettes weighing in excess of three pounds
96 per thousand cigarettes.
97 (3) Except as otherwise provided under this chapter, the tax levied under Subsection
98 (1) shall be paid by any person who is the manufacturer, jobber, importer, distributor,
99 wholesaler, retailer, user, or consumer.
100 (4) The tax rates specified in this section shall be increased by the commission by the
101 same amount as any future reduction in the federal excise tax on cigarettes.
102 (5) (a) There is created within the General Fund a restricted account known as the
103 "Cigarette Tax Restricted Account."
104 (b) Beginning on July 1, 1998, $250,000 of the revenues generated by the increase in
105 the cigarette tax under this section enacted during the 1997 Annual General Session shall be
106 annually deposited into the account.
107 (c) The Department of Health shall expend the funds deposited in the account under
108 Subsection (5)(b) for a tobacco prevention and control media campaign targeted towards
110 (d) The following revenue generated from the tax increase imposed under Subsection
111 (1) during the 2002 General Session shall be deposited in the Cigarette Tax Restricted
113 (i) 22% of the revenue to be annually appropriated to the Department of Health for
114 tobacco prevention, reduction, cessation, and control programs, $352,200 of which shall be
115 returned annually to the General Fund;
116 (ii) 15% of the revenue to be annually appropriated to the University of Utah Health
117 Sciences Center for the Huntsman Cancer Institute for cancer research; and
118 (iii) 21% of the revenue to be annually appropriated to the University of Utah Health
119 Sciences Center for medical education at the University of Utah School of Medicine.
120 (e) Any balance remaining in the Cigarette Tax Restricted Account at the end of the
121 fiscal year shall be appropriated during the next fiscal year for the purposes set forth in
122 Subsections (5)(d)(i) through (5)(d)(iii) in proportion to the amount of revenue deposited into
123 the account for each purpose.
124 (f) The Legislature shall give particular consideration to appropriating any revenues
125 resulting from the change in tax rates under Subsection (2) adopted during the 2002 Annual
126 General Session and not otherwise appropriated pursuant to Subsection (5)(d) to enhance
127 Medicaid provider reimbursement rates and medical coverage for the uninsured.
128 (g) Any program or entity that receives funding under Subsection (5)(d) shall provide
129 an annual report to the Health and Human Services Interim Committee no later that September
130 1 of each year. The report shall include:
131 (i) the amount funded;
132 (ii) the amount expended;
133 (iii) a description of the effectiveness of the program; and
134 (iv) if the program is a tobacco cessation program, the report required in Section
135 51-9-203 .
136 Section 3. Repealer.
137 This bill repeals:
138 Section 78A-5-202, Creation of Drug Board Pilot Project -- Definition of Drug
139 Board Pilot Project -- Criteria for parolee participation in the Drug Board Pilot Project --
140 Reporting requirements.
141 Section 4. Effective date.
142 This bill takes effect on July 1, 2009.
143 Section 5. Coordinating H.B. 444 with H.B. 302 -- Superseding amendments.
144 If this H.B. 444 and H.B. 302, Distribution of Tobacco Settlement Monies
145 Amendments, both pass, it is the intent of the Legislature that Section 51-9-201 in this bill
146 supersede Section 51-9-201 in H.B. 302 when the Office of Legislative Research and General
147 Counsel prepares the database for publication, on July 1, 2009.
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