HJR 17 -- Tobacco Settlement Agreement

Co-Sponsors:  Scheve, Van Zandt

This proposed amendment to the Missouri Constitution establishes
the Tobacco Settlement Trust Fund for receipt of any legal
settlement or award relating to tobacco-related products.  It
prohibits funds received from the settlement and any proceeds
from investment of the funds from being classified as total
state revenues and excludes the expenditure of the funds from
being an expense of state government.

All moneys in the trust fund and accrued interest must remain in
the trust fund until the corpus of the trust fund reaches $175
million.  Once the corpus of the trust fund reaches $175
million, that amount will be transferred to the Tobacco
Settlement Endowment.  This original transfer will remain in the
endowment until the corpus of the endowment reaches $1 billion.
All moneys in excess of $1 billion in the endowment will be
transferred back to the trust fund.

After the initial transfer of $175 million into the endowment
and when the corpus of the trust fund again reaches $175 million
from future receipts, that amount will be transferred to the
Pharmacy or Health Care Relief Fund for the Elderly.  Moneys in
this fund will be subject to annual appropriations by the
General Assembly.

All moneys transferred from the endowment to the trust fund and
all moneys received in the trust fund after the initial
transfers of $350 million from the trust fund will be subject to
appropriation and used and expended solely for programs as
follows:

(1)  50% for health care access and treatment;

(2)  20% for health sciences research;

(3)  15% for comprehensive tobacco cessation, education, and
prevention; and

(4)  15% for early intervention and prevention programs for
children.

These percentage restrictions will expire after June 30, 2012.

Moneys in the endowment will not be subject to state law
regarding the investment of surplus state funds.

Missouri House of Representatives
Last Updated September 13, 2001 at 2:05 pm