Date: 01/22/2009
Final
Review of Tobacco Settlement Moneys
COMMITTEE ON JOINT HEALTH AND HUMAN SERVICES
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02:37 PM -- Review of Tobacco Settlement Moneys
Steve Allen, Joint Budget Committee Staff, reviewed the requirements relating the statutorily-required review of tobacco settlement moneys by the JBC and the Joint HHS committee. A packet of materials was distributed to the committee (Attachment B). He gave an overview of the distribution of tobacco settlement moneys and of the required payments of the tobacco manufacturers that are not participants in the master settlement agreement. Mr. Allen responded to questions from Senator Carroll regarding enforcement policies for the nonparticipating states. He responded to additional questions from Representative Gerou regarding the escrow accounts that nonparticipating and participating tobacco manufacturers must pay into.
02:56 PM
Dr. Ned Calonge, Department of Public Health and Environment, stated that more master settlement agreement moneys are being used for direct health care services than in the past.
02:57 PM
Cindi Stetson, State Auditor's Office, noted that the packet contains the most recent audits on the programs that receive tobacco settlement moneys. She listed the audits that have been conducted since the JBC and Joint HHS committee last reviewed the use of tobacco settlement moneys in 2006. She responded to questions from Representative Kefalas regarding whether the programs that were evaluated by the auditor's office were meeting their programmatic goals. Mr. Allen responded to questions from Representative Swalm regarding the costs of administering the programs.
03:00 PM
Senator Boyd stated that the committee's job is to recommend a draft bill with a date by which the committees should meet again to review the tobacco settlement moneys. Representative Riesberg asked Mr. Allen to summarize his recommendation to the JBC regarding further review of the programs by the Joint HHS committee and JBC. Mr. Allen summarized his recommendation that the meetings be discontinued. He responded to comments from Representative Kerr regarding whether the sunset process should be used to review the use of the tobacco settlement moneys. Dr. Calonge stated that the Department of Public Health and Environment agrees with the primary recommendation that the Joint HHS and JBC review of the program be ended.
03:08 PM
Senator Boyd suggested that tobacco settlement funding for the Read to Achieve program be discontinued. Mr. Allen commented on the programs that receive tobacco settlement moneys, but do not have a strong health care component. Various committee members commented on the programs that receive tobacco moneys that are not health-related.
03:18 PM
Senator Boyd made a motion that a bill be drafted to eliminate the requirement that the JBC and the Joint HHS hold a meeting to review the use of tobacco settlement moneys. Dr. Calonge responded to comments from Senator Carroll reporting requirements for tobacco settlement moneys. Senator Boyd stated that the draft bill should include language ensuring that oversight of the programs continue, even though the formal meeting would end. With no objection from the committee, it was agreed a bill would be drafted to eliminate the required meeting and to ensure that oversight will continue. The committee discussed a possible second draft bill to eliminate tobacco settlement moneys for the Read to Achieve program. The committee discussed whether the bill could be drafted in such a way to specify where the money currently funding the Read to Achieve program could be redistributed. Senator Boyd suggested that the committee consider drafting a bill to create parameters for the committee to consider whether tobacco settlement funding for certain programs should be eliminated.
03:30 PM
Dr. Calonge responded to questions from Representative Swalm regarding the effect of eliminating funding for certain programs. Mr. Allen responded to questions from Representative Swalm regarding whether the master settlement agreement requires that the settlement moneys be spent on health care.
03:33 PM
Senator Boyd restated that a bill would be drafted to eliminate the required meeting between the Joint HHS committees and JBC. She suggested that the committee revisit the issue of whether funding for specific programs should be eliminated at a later meeting. She suggested that such a bill may best be carried as an individual bill, rather than a committee bill. Seeing no objection from any members, it was affirmed that the bill to eliminate the required review of tobacco settlement moneys by the Joint HHS committees and the JBC be drafted.