HB 5364 — AN ACT CONCERNING THE TOBACCO SETTLEMENT TRUST FUND.

House of Representatives General Assembly FileRaised Bill No.

1545364 February Session, 2022 HouseLCO Bill No.

53642582 HouseReferred ofto Representatives, March 28, 2022 The Committee on PublicPUBLIC HealthHEALTH reportedIntroduced throughby: REP.

STEINBERG(PH) ofAN theACT 136thCONCERNING Dist.,THE ChairpersonTOBACCO ofSETTLEMENT theTRUST CommitteeFUND. on the part of the House, that the bill ought to pass.

AN ACT CONCERNING THE TOBACCO SETTLEMENT TRUST FUND.

(a) There is created a Tobacco and Health Trust Fund which shall be HB5364a /separate Filenonlapsing No.fund.

154The 1purpose HB5364of Filethe trust fund shall be to LCO 2582 \\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05364-R021 of 6 HB.docx Raised Bill No.

1545364 create a separatecontinuing nonlapsingsignificant fund.source of funds to (1) support and encourage development of programs to reduce tobacco abuse through prevention, education and cessation programs, (2) support and encourage development of programs to reduce substance abuse, and (3) develop and implement programs to meet the unmet physical and mental health needs in the state.

The purpose of the trust fund shall be to create a continuing significant source of funds to (1) support and encourage development of programs to reduce tobacco abuse through prevention, education and cessation programs, (2) support and encourage development of programs to reduce substance abuse, and (3) develop and implement programs to meet the unmet physical and mental health needs in the state.

The board shallshall, consist of seventeen trustees.

The period of suspension of the board's operations from July 1, 2003, to June 30, 2005, HB5364LCO /2582 File{\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-053642 of 6 R02-HB.docx } Raised Bill No.

1545364 2inclusive, HB5364shall Filenot No.be included in the term ofany trustee serving onJuly 1, 2003.

154 inclusive, shall not be included in the term ofany trustee serving onJuly 1, 2003.

For the fiscal year ending June 30, 2009, and each fiscal year thereafter, the board may recommend authorization of disbursement for such purposes of (A) up to one-half of the annual disbursement from the Tobacco Settlement Fund to the Tobacco and Health Trust Fund from the previous fiscal year, pursuant to section 4-28e, up to a maximum of six million dollars per fiscal year, and (B) the net earnings from the principal of the trust fund from the previous fiscal year.] For the fiscal year ending June 30, [2014] 2023, and each fiscal year thereafter, the boardLCO of2582 trustees,{\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05364-3 byof majority6 vote,R02-HB.docx may} recommendRaised authorizationBill of HB5364 / File No.

1545364 3board HB5364of Filetrustees, No.by majority vote, may recommend authorization of disbursement [of up to the total unobligated balance remaining in the trust fund after disbursement in accordance with the provisions of the general statutes and relevant special and public acts for such purposes, not to exceed] from the trust fund for the purposes described in subsection (a) of this section and section 19a-6d, provided the board maynotrecommendauthorizationofdisbursementofmorethan twelve million dollars per fiscal year from the trust fund for such purposes.

154 disbursement [of up to the total unobligated balance remaining in the trust fund after disbursement in accordance with the provisions of the general statutes and relevant special and public acts for such purposes, not to exceed] from the trust fund for the purposes described in subsection (a) of this section and section 19a-6d, provided the board maynotrecommendauthorizationofdisbursementofmorethan twelve million dollars per fiscal year from the trust fund for such purposes.

If the joint standing committees accept the report of the committee on conference,LCO the2582 joint{\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05364-4 standing committee having cognizance of matters6 relatingR02-HB.docx to} appropriationsRaised andBill the budgets of state agencies shall advise HB5364 / File No.

1545364 4conference, HB5364the Filejoint No.standing committee having cognizance of matters relating to appropriations and the budgets of state agencies shall advise the board of said joint standing committees' approval or modifications, if any, of the board's recommended disbursement.

154 the board of said joint standing committees' approval or modifications, if any, of the board's recommended disbursement.

SectionLCO 12582 July{\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05364- 1,5 2022of 4-28e(c)6 Sec.R02-HB.docx } Raised Bill No.

25364 Section 1 July 1, 2022 4-28f4-28e(c) HB5364Sec. / File No.

1542 5July HB53641, File2022 No.4-28f PH Joint Favorable FIN Joint Favorable LCO 2582 R02-HB.docx }OUSERS\BARRYJN\WS\2022HB-05364- 6 of 6

154 PH Joint Favorable HB5364 / File No.

154 6 HB5364 File No.

154 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 23 $ FY 24 $ THTF Tobacco Health See Below See Below Trust Fund - See Below Resources of the General Fund GF - See Below See Below See Below Note:

GF=General Fund Municipal Impact:

None Explanation The bill sets aside at least $4 million annually of future proceeds from the Tobacco Settlement to the Tobacco Health Trust Fund, resulting in a commensurate revenue loss to the General Fund.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future.

HB5364 / File No.

154 7 HB5364 File No.

154 OLR Bill Analysis HB 5364 AN ACT CONCERNING THE TOBACCO SETTLEMENT TRUST FUND.

SUMMARY This bill redirects annual disbursements from the Tobacco Settlement Fund, starting in FY 23.

It provides that, after the required General Fund transfer, an additional $4 million from the settlement fund goes to the General Fund, with any remaining funds directed to the Tobacco and Health Trust Fund.

Under current law, the entire annual disbursement from the Tobacco Settlement Fund goes to the General Fund.

The bill retains provisions in current law capping at $ 12 million the amount that the Tobacco and Health Trust Fund’s Board of Trustees may recommend be disbursed annually from the fund.

It specifies that they may recommend disbursements to programs for the fund’s statutory purposes (i.e., tobacco use prevention, education, and cessation;