House Sponsors: FRITCHEY-FEIGENHOLTZ-MULLIGAN-COULSON-HOFFMAN, DAVIS,MONIQUE, CURRIE, ACEVEDO, BOLAND, BRADLEY, BRUNSVOLD, BUGIELSKI, BURKE, CAPPARELLI, CURRY,JULIE, DART, ERWIN, FLOWERS, FOWLER, GARRETT, GASH, GIGLIO, GILES, HAMOS, HANNIG, HARRIS, HARTKE, HOLBROOK, HOWARD, KENNER, LYONS,JOSEPH, MCCARTHY, MCKEON, MORROW, MURPHY, NOVAK, OSTERMAN, REITZ, SCHOENBERG, SCOTT, SCULLY, SHARP, SILVA, SMITH,MICHAEL, STROGER, TURNER,ART, WOOLARD, YOUNGE, PUGH, MCGUIRE AND MADIGAN,MJ. Short description: TOBACCO SETTLEMENT-TREASURER Synopsis of Bill as introduced: Creates the Health First Plan Act and amends the State Comptroller Act, the Legislative Commission Reorganization Act of 1984, the Illinois State Auditing Act, and the State Finance Act. Creates the Tobacco Settlement Recovery Fund as a special fund in the State treasury. Provides that the State Treasurer shall deposit into the Fund all moneys paid to the State pursuant to the Master Settlement Agreement entered in the case of the People of the State of Illinois v. Philip Morris et al. Provides that some of those moneys shall be set aside for investment and the remainder distributed between other special funds for various tobacco-related programs; requires the State Treasurer to certify the respective amounts. Provides for an Illinois Tobacco Funds Authority appointed by the Governor. Requires the State Comptroller, the Legislative Research Unit, and the Auditor General to periodically evaluate expenditures from the special tobacco-related program funds. Effective immediately. BALANCED BUDGET NOTE (Bureau of the Budget) Since HB 2924 is not a supplemental appropriation bill, the Balanced Budget Note Act is inapplicable. STATE DEBT NOTE (Ill. Economic and Fiscal Commission) HB 2924 would not affect the bonding authorization of the State, so there is no direct impact on the level of State indebtedness. FISCAL NOTE (State Treasurer) Estimated collections total $377,753,000 for FY00 and $283,820,000 for FY01. Fifty percent of these would be trans- ferred to the special funds to be spent pursuant to the Author- ity's discretion. FY02 estimated receipts are $342,929,000, of which 52% will be transferred to the Authority. This is a total of $509,109,511 which could be spent by the Authority, along with $301,500 the Treasurer's Office is allowed to spend from the Tobacco Settlement Recovery Fund. Future estimates are affected by several factors outside the State's control, including inflation, increase or decrease in tobacco sales, and additional settlements by local governments. STATE MANDATES NOTE (Dept. of Commerce and Community Affairs) HB 2924 does not create a State mandate. HOUSE AMENDMENT NO. 1. Deletes reference to: 30 ILCS 105/5.540 new Adds reference to: New Act 30 ILCS 105/6z-43 Creates the Health First Plan Law and the Tobacco Settlement Bonding Authority Law and amends the State Comptroller Act, the Legislative Commission Reorganization Act of 1984, the Illinois State Auditing Act, and the State Finance Act. Provides for the allocation of moneys paid to the State pursuant to the Master Settlement Agreement entered in the case of the People of the State of Illinois v. Philip Morris et al. Provides that some of those moneys shall be set aside for investment and the remainder distributed between other special funds for various tobacco-related programs; requires the State Treasurer to certify the respective amounts. Creates the Tobacco Settlement Bonding Authority and provides for the sale of up to 20% of the tobacco settlement proceeds (taken from the portion of those proceeds set aside for investment) to the Authority; authorizes the Authority to issue bonds. Provides for the Health First Plan Authority appointed by the Governor. Requires the State Comptroller, the Legislative Research Unit, and the Auditor General to periodically evaluate expenditures from the special tobacco-related program funds. Effective immediately. FISCAL NOTE, H-AM 1 (State Treasurer) Estimated collections for FY00 are $377,753,000 and FY01 are $283,820,000. $330,787,000 will be transferred to the special funds for the Health First Plan Authority. In FY01, the Bond- ing Authority is estimated to spend $6,331,000 and collect bond proceeds of $240,000,000. FY02 estimated receipts are $342,929,000, of which $178,323,000 will be transferred to the Health First Plan Authority. The Bonding Authority is esti- mated to receive $165,000. In each year, interest expense for the bonds and interest income on the proceeds will depend on prevailing rates at the time. The Treasurer's Office spending is capped at $200,000 through January 1, 2002 and at approx. $102,000 in the second half of FY02. Future estimates are affected by several factors outside the State's control. BALANCED BUDGET NOTE, H-AM 1 (Bureau of the Budget) Since this bill is not a supplemental appropriation, the Balanced Budget Note Act is inapplicable. STATE MANDATES NOTE, H-AM 1 (Department of Commerce and Community Affairs) This legislation creates a tax exemption mandate for which reimbursement of 100% of the increased costs to units of local gov't. is required. Due to the nature of the bill, no estimate of any potential cost to units of local gov't. is available. Last action on Bill: SESSION SINE DIE Last action date: 01-01-09 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 0 END OF INQUIRY Full Text Bill Status