Colorado Legislative Council Staff
NO FISCAL IMPACT
February 5, 1999
Steve Tammeus (866-2756)
TITLE: CONCERNING THE CREATION OF THE TOBACCO LITIGATION SETTLEMENT FUND.
Summary of Assessment
This bill creates the Tobacco Litigation Settlement Fund in the state treasury to consist of all moneys transmitted to the state in accordance with the terms of the master settlement agreement, the smokeless tobacco master settlement agreement, and the associated consent decree ordered by the district court. All moneys remaining in the fund at the end of each fiscal year and all investment earnings of the fund are to be retained in the fund. Moneys in the fund are subject to annual appropriation by the General Assembly. The bill specifies that moneys credited to the fund and expended by the state, or distributed to local governments, are excluded from state and local government fiscal year spending. The bill will become effective upon signature of the Governor.
Under current law, moneys transmitted to the state in accordance with the tobacco litigation master agreements would be deposited to the state General Fund. While in the General Fund, those moneys would earn investment earnings at an average rate of 5.5% per year. This bill requires those moneys to be deposited to the Tobacco Litigation Settlement Fund rather than the state General Fund. Moneys in the Tobacco Litigation Settlement Fund would earn investment earnings at the same rate as moneys in the state General Fund.
This bill will not affect state or local government revenue or expenditures. Therefore, the bill is assessed as having no fiscal impact.