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Committee approves state question to move $1 billion from TSET into new Oklahoma Futures Trust Fund
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Summary
The Rules Committee passed HJR 1077, sending a state question to voters that would transfer $1 billion of the Tobacco Settlement Endowment Trust corpus into a new constitutionally protected Oklahoma Futures Trust Fund; proceeds would be split so 20% is retained and 80% could be appropriated by the legislature annually beginning FY 2030. The measure passed committee 14–4.
The Rules Committee voted 14–4 to send HJR 1077 forward after extended questioning and debate over the proposed constitutional change.
Pro Tem Paxton explained that the resolution would put a state question before voters to move $1 billion from the Tobacco Settlement Endowment Trust (TSET) corpus — which he said currently exceeds $2.2 billion — into a new constitutionally protected Oklahoma Futures Trust Fund. Under the committee substitute presented, the fund’s proceeds would be managed so 20% is retained to grow the fund while 80% would be available to the legislature for grants and appropriations targeted at improving health and educational outcomes beginning in fiscal year 2030. “So we would move $1,000,000,000 over to this new fund… Every year, this money that this fund would generate, 20% of it would roll back into the fund to keep the fund growing. 80% would be given to the legislature,” Pro Tem Paxton said.
Opponents warned the change weakens the independence of the TSET model. Senator Hicks argued the proposal “breaks that model” and replaces a structure of protected long‑term funding with a system that allows annual legislative appropriations potentially subject to political priorities; Hicks urged a no vote on that basis. Senator Boren and others warned the transfer could expose funds to partisan budget bargaining and asked whether the funding stream originated from the master tobacco settlement or from taxpayer revenue; Paxton and supporters said the corpus comes from the master settlement and emphasized that the corpus itself remains constitutionally protected while the new fund’s proceeds would be appropriable by future legislatures.
Senators asked multiple times about safeguards and long‑term effects on TSET programs — including tobacco cessation services and cancer research — if $1 billion of the corpus is removed. The sponsor said the TSET board would remain in place and the TSET investment board would continue to manage investments, but acknowledged program revenue would be reduced relative to current projections if the transfer occurs.
Following debate, the committee recorded 14 ayes and 4 nays and declared HJR 1077 passed out of committee.
What happens next: Because HJR 1077 is a proposed state question, it would go to voters for approval if enacted; committee passage advances the resolution to further legislative consideration.