SB 0223 - Fiscal Note

Fiscal Note - SB 0223 - Establishes the Tobacco Settlement Fund Commission

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 0971-01

BILL NO.: SB 223

SUBJECT: Tobacco Products: Appropriations

TYPE: Original

DATE: February 8, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Tobacco Settlement	$0	($200,000,000)	($200,000,000)
Tobacco Settlement Endowment	$0	$20,000,000	$20,000,000
General Revenue	($9,240)	$0	$0
Total Estimated Net Effect on All State Funds	($9,240)	($180,000,000)	($180,000,000)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials of the Attorney General, the House of Representatives, the Senate and the Missouri Consolidated Health Care Plan stated that the proposal would not directly affect the agencies or that additional duties could be absorbed within current resources.

Officials of the Department of Elementary and Secondary Education, Department of Mental Health, Department of Health, Department of Public Safety and Department of Social Services noted that their expenses due to the interagency administrative body would be paid from tobacco settlement monies; therefore, despite not being able to detail administrative costs, they assume no net costs due to this proposal.

Oversight assumes costs for Commission expenses before FY 2001 (when settlement monies are scheduled to start coming to the State) will be paid from the General Revenue Fund. Oversight assumes the commission will meet three times for two day during FY 2000, that state agency members' expenses will be paid from existing agency budgets, that the fourteen public members will have average expenses of $220 per meeting.

For purposes of this proposal, Oversight assumes tobacco settlement moneys will be held in a Tobacco Settlement Fund and distributed as set out in the proposal from that Fund. Oversight further assumes that moneys will be spent in the year they are distributed except for moneys distributed to the Tobacco Settlement Endowment Fund. Disbursements will be $200,000,000 per year, initially.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
TOBACCO SETTLEMENT FUND
Costs - Disbursements per law	$0	($200,000,000)	($200,000,000)
NET EFFECT ON TOBACCO
SETTLEMENT FUND	$0	($200,000,000)	($200,000,000)
TOBACCO SETTLEMENT
ENDOWMENT FUND
Income - Receipts from Tobacco Settlement
Fund	$0	$20,000,000	$20,000,000
FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
(continued)	(10 Mo.)
NET EFFECT ON TOBACCO SETTLEMENT
ENDOWMENT FUND	$0	$20,000,000	$20,000,000
GENERAL REVENUE FUND
Cost - Commission Expenses	($9,240)	$0	$0
NET EFFECT ON GENERAL
REVENUE FUND	($9,240)	$0	$0
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
	$0	$0	$0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

This proposal would make arrangements for use of funds received as result of the recent settlement among States and tobacco companies. It would:

1) establish a "Tobacco Settlement Fund Commission" which would develop strategies for using settlement funds, approve programs for use of those funds, prepare an annual report on uses of settlement funds, and disburse settlement funds according to terms of the proposal;

2) require the departments of Health, Mental Health, Social Services, Elementary and Secondary Education and Public Safety to establish an interagency administrative body to implement programs approved by the Commission;

3) establish a schedule for disbursement of tobacco settlement moneys; and

4) establish a "Tobacco Settlement Endowment Fund" which would receive ten percent of settlement moneys and, after ten years, its earnings would fund the interagency administrative body and continuation of tobacco settlement programs.

DESCRIPTION (continued)

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. The proposal would not affect Total State Revenues.

SOURCES OF INFORMATION

Attorney General

Department of Elementary and Secondary Education

Department of Mental Health

Department of Health

Department of Public Safety

Administration

Highway Patrol

Department of Social Services

Governor

House of Representatives

Senate

Missouri Consolidated Health Care Plan

Jeanne Jarrett, CPA

Director

February 8, 1999