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Senate advances plan to split tobacco settlement between trust fund and health programs
Summary
The Utah Senate advanced a second-substitute version of S.B. 15 that directs half of tobacco-settlement receipts into a restricted trust and spends the remainder on CHIP, prevention, drug courts and university research; the measure passed to the third-reading calendar after extended debate and questions about fiscal notes and sunset provisions.
Salt Lake City — The Utah Senate on Feb. 24 advanced a sweeping plan to allocate the state's tobacco-settlement proceeds, voting to send Second Substitute Senate Bill 15 to the third-reading calendar after extended floor debate.
Sen. Poulton, the bill sponsor on the floor, said the measure ‘‘would give us the direction that we would appropriate that money,’’ laying out an ordered funding ladder that prioritizes the Children's Health Insurance Program (CHIP) and earmarks funds for prevention, treatment and research while depositing a large share into a permanent trust.
Under the bill as explained on the floor, the legislature would direct $5,500,000 to CHIP, $4,000,000 to tobacco-prevention and cessation programs, $2,000,000 to a drug-court program and $4,000,000 to the University of Utah Health Sciences Center. Fifty percent of receipts for the first three years would be placed into a restricted trust account (the sponsor said the split shifts later to a 60/40 pattern once the trust reaches a defined threshold).
Sen. Bolton and several senators praised the bill's structure. Sen. Bolton said the plan ‘‘has a 3-pronged approach’’ of prevention, treatment and research and called it ‘‘a tremendous piece of legislation.’’ Sen. Blackcomb added that placing a sizable share into a long-term endowment would produce returns for future state needs.
Despite broad support, senators raised technical and fiscal questions on the floor. Sen. Davis asked about an apparent mismatch between the bill's spending figures and the fiscal note, telling the floor that the bill text implies roughly $12 million in initial appropriations while the fiscal estimate showed a higher impact. The sponsor said an amended fiscal note would be requested to reflect the committee-approved changes.
Other senators sought clarity about the bill's mechanics. Lawmakers asked whether remaining balances in the hospital-provider assessment account should instead flow into the trust if a large surplus existed; staff and the sponsor said they would research that and report back. Senators also asked about the governance of trust earnings and how restricted- and general-account appropriations would be sequenced if receipts fell short.
Sen. Suazo highlighted another programmatic effect: the bill's $2 million for drug courts would free other appropriated funds and could open prison capacity by funding alternative treatment options.
A range of members offered procedural and policy support and cautions. Sen. Allen praised the move to seed a permanent endowment from one-time settlement funds. Sen. Hall and others warned that any long-term commitments should consider future budget realities once tobacco receipts decline.
The Senate recorded a roll-call determination that the second substitute S.B. 15 ‘‘has 29 aye votes’’ and no nay votes, and the measure was sent to the third-reading calendar for final consideration. No final enactment or spending authorization occurs until the bill completes the legislative process and receives final enrollment and signature as required.
What's next: S.B. 15 will appear on the Senate's third-reading calendar, where senators will have a final recorded vote and the body will determine final enrollment and transmittal to the House (or to the governor if already passed). The sponsor indicated staff will secure an amended fiscal note reflecting floor amendments before final action.
(Reporting based on the Utah Senate floor session, Feb. 24, 2000.)
