State of Illinois
92nd General Assembly
Legislation

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92_HB0142

 
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 1        AN ACT concerning State finance.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  1.  Short  title.  This  Act may be cited as the
 5    Investment of Tobacco Settlement Proceeds Act.

 6        Section 5. Purpose. This  Act  is  created  to  invest  a
 7    portion  of  the  proceeds  from  this  State's  share of the
 8    nationwide  tobacco  settlement  into   biomedical   research
 9    designed  to  increase  the  understanding of tobacco-related
10    illness and to improve the treatment  and  care  of  Illinois
11    residents harmed by tobacco use.

12        Section 10. Definitions. For purposes of this Act:
13        "Affiliated  teaching  hospital" means a hospital located
14    in Illinois that is either (i) under common ownership with an
15    eligible university or (ii) a free-standing hospital that has
16    an affiliation agreement relating to the training of  medical
17    residents with an eligible university.
18        "Base  funding amount" means an amount equal to 5% of the
19    total unrestricted proceeds allocated  by  this  Act  to  the
20    Tobacco Settlement Biomedical Research Fund.
21        "Committee"   means   the   Tobacco  Settlement  Advisory
22    Committee, which shall be  composed  of  the  deans  of  each
23    eligible university or their designees.
24        "Eligible   university"   means   a   public  or  private
25    university located in the State  of  Illinois  with  a  fully
26    accredited medical school conducting, either alone or through
27    its   affiliated  teaching  hospitals,  at  least  $3,000,000
28    annually in National Institutes of Health sponsored research.
29        "IDPH" means the Illinois Department of Public Health.
30        "NIH" means the National Institutes of Health.
 
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 1        "NIH allocation amount" means the remaining funds in  the
 2    Tobacco  Settlement  Biomedical  Research Fund that are to be
 3    distributed to each eligible university following the  annual
 4    distribution of the base funding amount.
 5        "NIH  allocation  calculations"  means the method used to
 6    determine the NIH allocation formula funding amounts for each
 7    eligible university. On  June  1  of  each  year,  using  the
 8    previous  federal  fiscal  year  data  for  NIH  funding, the
 9    Committee shall:
10             (i)  determine the total  NIH  funding  received  by
11        each   eligible  university,  which  determination  shall
12        include the total  NIH  funding  received  by  respective
13        affiliated teaching hospitals;
14             (ii)  determine  the  total  NIH funding received by
15        all   eligible   universities,    including    respective
16        affiliated teaching hospitals;
17             (iii)  determine    each    eligible    university's
18        percentage of the total NIH funding by dividing the total
19        NIH  funding  received  by  each  eligible  university as
20        determined  in  item  (i)  into  the  total  NIH  funding
21        received by all eligible universities  as  determined  in
22        item (ii); and
23             (iv)  determine  the  NIH allocation formula funding
24        amounts for each eligible university by  multiplying  the
25        NIH  funding  percentage  for each eligible university as
26        determined in item (iii) by the NIH allocation amount.
27        "NIH allocation formula funding amount" means the  amount
28    each eligible university receives based on the NIH allocation
29    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
27    university in accordance with this Section with the exception
28    of 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 university in the following manner:
32             (1)  Each  eligible  university shall receive a base
 
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 1        funding amount.
 2             (2)  Each  fiscal  year,  each  eligible  university
 3        shall  receive  its  respective  NIH  Allocation  Formula
 4        Funding Amount.

 5        Section  25.  Use   of   funds.   Eligible   universities
 6    receiving   funds  from  the  Tobacco  Settlement  Biomedical
 7    Research Fund may use such funds to:
 8             (1)  support   ongoing    programs    relating    to
 9        tobacco-related illness research;
10             (2)  create new programs relating to tobacco-related
11        illness research; and
12             (3)  improve,  equip,  or construct laboratory space
13        to be used  in  furtherance  of  tobacco-related  illness
14        research.

15        Section 30.  Reporting requirement.
16        (a)  On  May  31  of  each year, each eligible university
17    shall submit to IDPH a report detailing its use of funds from
18    the Tobacco Settlement Biomedical Research Fund. Each  report
19    shall  provide  a  detailed  account  of how these funds were
20    spent and shall provide an analysis of the  progress  of  the
21    tobacco-related illness research funded under this Act during
22    the previous year.
23        (b)  The  IDPH shall annually review each such report and
24    prepare a summary report to  the  Governor  and  the  General
25    Assembly.

26        Section  35.  Audits. Notwithstanding the requirements of
27    any other State law or  regulation,  an  eligible  university
28    that  conducts  annual audits of its own operations may elect
29    to fulfill any audit requirements with respect to any or  all
30    funds  received  under  this  Act  by  having  such  an audit
31    conducted at the time of its own  annual  audit  at  its  own
 
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 1    cost.
 2        Each  eligible  university shall make such an election at
 3    the time  that  it  receives  funds  under  this  Act.   Each
 4    eligible  university  shall not be required to elect that all
 5    State grants  be  included  in  its  annual  audit.  Such  an
 6    election may be for either financial or compliance audits, or
 7    both.  In  the  event  of  such an election, the audits shall
 8    fulfill the audit requirements of the applicable State law or
 9    regulation authorizing the grants, except for  the  reporting
10    dates  required for the audits. The audits shall be conducted
11    in accordance with generally accepted auditing  standards  by
12    certified public accountants authorized to do business in the
13    State of Illinois.
14        The provisions of this Section do not limit the authority
15    of  any  State agency to conduct, or enter into contracts for
16    the  conduct  of,  audits  and  evaluations  of  State  grant
17    programs, nor do these provisions limit the authority of  the
18    Auditor  General. The State agency shall fund the cost of any
19    such additional audits.

20        Section 40.  Contravention of law. Funds  received  under
21    this  Act  shall  not  be used in contravention of any law of
22    this State.

23        Section 90.  The State Finance Act is amended  by  adding
24    Section 5.545 as follows:

25        (30 ILCS 105/5.545 new)
26        Sec.  5.545.  The  Tobacco Settlement Biomedical Research
27    Fund.

28        Section 99. Effective date. This Act  takes  effect  upon
29    becoming law.

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