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91_SB1005
LRB9105878LDks
1 AN ACT concerning distribution of tobacco litigation
2 settlement proceeds.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 1. Short title. This Act may be cited as the
6 Investment of Tobacco Settlement Proceeds Act.
7 Section 5. Purpose. This Act is created to invest a
8 portion of the proceeds from this State's share of the
9 nationwide tobacco settlement into biomedical research
10 designed to increase the understanding of tobacco-related
11 illness and to improve the treatment and care of Illinois
12 residents harmed by tobacco use.
13 Section 10. Definitions. For purposes of this Act:
14 "Affiliated teaching hospital" means a hospital located
15 in Illinois that is either (i) under common ownership with an
16 eligible medical school or (ii) a free-standing hospital that
17 has an affiliation agreement relating to the training of
18 medical residents with an eligible medical school.
19 "Base funding amount" means an amount equal to 5% of the
20 total unrestricted proceeds allocated by this Act to the
21 Tobacco Settlement Biomedical Research Fund.
22 "Committee" means the Tobacco Settlement Advisory
23 Committee, which shall be composed of the deans of each
24 eligible medical school or their designees.
25 "Eligible medical school" means a public or private
26 university located in the State of Illinois with a fully
27 accredited medical school conducting, either alone or through
28 its affiliated teaching hospitals, at least $3,000,000
29 annually in National Institutes of Health sponsored research.
30 "IDPH" means the Illinois Department of Public Health.
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1 "NIH" means the National Institutes of Health.
2 "NIH allocation amount" means the remaining funds in the
3 Tobacco Settlement Biomedical Research Fund that are to be
4 distributed to each eligible medical school following the
5 annual distribution of the base funding amount.
6 "NIH allocation calculations" means the method used to
7 determine the NIH allocation formula funding amounts for each
8 eligible medical school. On June 1 of each year, using the
9 previous federal fiscal year data for NIH funding, the
10 Committee shall:
11 (i) determine the total NIH funding received by each
12 eligible medical school, which determination shall include
13 the total NIH funding received by respective affiliated
14 teaching hospitals;
15 (ii) determine the total NIH funding received by all
16 eligible medical schools, including respective affiliated
17 teaching hospitals;
18 (iii) determine each eligible medical school's
19 percentage of the total NIH funding by dividing the total NIH
20 funding received by each eligible medical school as
21 determined in item (i) into the total NIH funding received by
22 all eligible medical schools as determined in item (b); and
23 (iv) determine the NIH allocation formula funding
24 amounts for each eligible medical school by multiplying the
25 NIH funding percentage for each eligible medical school as
26 determined in item (iii) by the NIH allocation amount.
27 "NIH allocation formula funding amount" means the amount
28 each eligible medical school receives based on the NIH
29 allocation calculations.
30 "Settlement agreement" means the portions of the
31 settlement agreement in the case of People v. Philip Morris,
32 Inc. et al. (Case number 96L13146 in the Cook County Circuit
33 Court) and any associated litigation that is relevant to this
34 State.
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1 "Tobacco-related illness research" means basic or
2 clinical research directed toward the understanding of
3 tobacco-related illnesses, including but not limited to:
4 oral, pharyngeal, and esophageal cancers, and cancers of the
5 lung, bladder, and kidney; cardiovascular disease, including
6 heart attacks and strokes; pulmonary disease, including
7 emphysema and asthma; and neurological disease, including
8 stroke, nicotine addiction, and chronic depression.
9 "Tobacco Settlement Biomedical Research Fund" means the
10 fund created pursuant to Section 15 of this Act.
11 "Unrestricted proceeds" means that portion of the moneys
12 received by the State under the settlement agreement, the use
13 of which is not restricted under the terms of the settlement
14 agreement.
15 Section 15. Tobacco Settlement Biomedical Research Fund.
16 (a) The Tobacco Settlement Biomedical Research Fund is
17 created as a special fund in the State Treasury.
18 (b) One third of all unrestricted proceeds received by
19 the State under the settlement agreement shall be deposited
20 into the Tobacco Settlement Biomedical Research Fund.
21 Section 20. Allocation and disbursement of funds.
22 (a) On June 1 of each year, the Committee shall perform
23 and certify the NIH allocation calculations.
24 (b) Moneys in the Tobacco Settlement Biomedical Research
25 Fund shall be appropriated annually to the University of
26 Illinois, which shall transfer funds to each eligible medical
27 school in accordance with this Section with the exception of
28 the base funding amount for Southern Illinois University,
29 which shall be appropriated directly to that institution.
30 Funds shall be distributed on June 30 of each year to each
31 eligible medical school in the following manner:
32 (1) Each eligible medical school shall receive a
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1 base funding amount.
2 (2) Each fiscal year, each eligible medical school
3 shall receive its respective NIH Allocation Formula
4 Funding Amount.
5 Section 25. Use of funds. Eligible medical schools
6 receiving funds from the Tobacco Settlement Biomedical
7 Research Fund may use such funds to:
8 (i) support ongoing programs relating to tobacco-related
9 illness research;
10 (ii) create new programs relating to tobacco-related
11 illness research; and
12 (iii) improve, equip, or construct laboratory space to
13 be used in furtherance of tobacco-related illness research.
14 Section 30. Reporting requirement.
15 (a) On May 31 of each year, each eligible medical school
16 shall submit to IDPH a report detailing its use of funds from
17 the Tobacco Settlement Biomedical Research Fund. Each report
18 shall provide a detailed account of how these funds were
19 spent and shall provide an analysis of the progress of the
20 tobacco-related illness research funded under this Act during
21 the previous year.
22 (b) The IDPH shall annually review each such report and
23 prepare a summary report to the Governor and the General
24 Assembly.
25 Section 35. Institutions conducting their own annual
26 audits; audit requirements; election. Notwithstanding the
27 requirements of any other State law or regulation, an
28 eligible medical school that is a component of an institution
29 of higher education that conducts annual audits of its own
30 operations, may elect to fulfill any audit requirements with
31 respect to any or all funds received under this Act by having
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1 such audit conducted at the time of its own annual audit at
2 its own cost.
3 Each eligible medical school shall make such election at
4 the time that it receives funds under this Act. Each
5 eligible medical school shall not be required to elect that
6 all State grants be included in its annual audit. Such
7 election may be for either financial or compliance audits, or
8 both. In the event of such election, such audits shall
9 fulfill the audit requirements of the applicable State law or
10 regulation authorizing such grants except for the reporting
11 dates required for such audits. Such audits shall be
12 conducted in accordance with generally accepted auditing
13 standards by certified public accountants authorized to do
14 business in the State of Illinois.
15 The provisions of this Section do not limit the authority
16 of any State agency to conduct, or enter into contracts for
17 the conduct of, audits and evaluations of State grant
18 programs, nor limit the authority of the Auditor General.
19 Such State agency shall fund the cost of any such additional
20 audits.
21 Section 40. Contravention of law. Funds received under
22 this Act shall not be used in contravention of any law of
23 this State.
24 Section 90. The State Finance Act is amended by adding
25 Section 5.490 as follows:
26 (30 ILCS 105/5.490 new)
27 Sec. 5.490. The Tobacco Settlement Biomedical Research
28 Fund.
29 Section 99. Effective date. This Act takes effect upon
30 becoming law.