First Regular Session
Sixty-second General Assembly
LLS NO. 99-0492.01 Sharon Eubanks SENATE BILL 99-054
STATE OF COLORADO
BY SENATOR Andrews;
also REPRESENTATIVE Stengel.
HEALTH, ENVIRONMENT, WELFARE & INSTITUTIONS
APPROPRIATIONS
A BILL FOR AN ACT
101 CONCERNING THE CREATION OF THE COLORADO HEALTH CARE TRUST
102 FUND IN THE STATE TREASURY.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Creates a fund in the state treasury to be known as the Colorado
health care trust fund. Specifies that the principal of the trust fund shall
consist of all moneys paid to the state by certain tobacco companies in
settlement of the state's lawsuit against those companies and any
investment earnings on said moneys.
Requires the state treasurer to certify annually the amount of
principal in the trust fund as of a specified date. Authorizes a certain
percentage of the principal of the trust fund as of said date to be
appropriated by the general assembly for public health purposes and for
certain expenses relating to the legislative review of the trust fund prior
to its repeal, effective July 1, 2009.
States that moneys received from tobacco companies as the result
of said lawsuit that are credited to or expended from the trust fund are
damage awards and, therefore, are excluded from state and local
government fiscal year spending for purposes of section 20 of article X
of the state constitution. Also states that investment earnings on moneys
in the trust fund are not damage awards and, therefore, are included in
state and local government fiscal year spending for purposes of section
20 of article X of the state constitution.
1 Be it enacted by the General Assembly of the State of Colorado:
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
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1 SECTION 1. Article 36 of title 24, Colorado Revised Statutes,
2 is amended BY THE ADDITION OF THE FOLLOWING NEW
3 SECTIONS to read:
4 24-36-119. Legislative declaration - Colorado public health
5 trust fund - creation - repeal. (1) IN ORDER TO COMPLY WITH THE
6 INTENT AND PURPOSE OF SECTION 20 OF ARTICLE X OF THE STATE
7 CONSTITUTION TO REASONABLY RESTRAIN THE GROWTH OF GOVERNMENT
8 PROGRAMS AND SERVICES AND IN LIGHT OF THE RECENT TREND OF STATE
9 REVENUES EXCEEDING THE LIMITATION ON STATE FISCAL YEAR SPENDING
10 IMPOSED BY SAID SECTION 20, THE GENERAL ASSEMBLY HEREBY FINDS AND
11 DECLARES THAT IT IS NOT NECESSARY OR PRUDENT AT THIS TIME TO SPEND
12 ALL OR A SIGNIFICANT PORTION OF THE AMOUNT OF REVENUE THE STATE
13 ANNUALLY RECEIVES DUE TO THE TOBACCO LITIGATION MASTER
14 SETTLEMENT AGREEMENTS AND CONSENT DECREE. THE GENERAL
15 ASSEMBLY HEREBY FURTHER FINDS AND DECLARES THAT IT IS
16 APPROPRIATE TO CREATE A TRUST FUND CONSISTING OF THE REVENUE
17 RECEIVED BY THE STATE AS A RESULT OF THE TOBACCO LITIGATION
18 MASTER SETTLEMENT AGREEMENTS AND CONSENT DECREE AND THE
19 INVESTMENT EARNINGS ON SAID REVENUE THAT WILL GENERATE AN
20 INCREASING ANNUAL AMOUNT OF REVENUE THAT CAN BE USED, IN
21 ACCORDANCE WITH PRIORITIES SET BY THE GENERAL ASSEMBLY, TO
22 ADDRESS THE PUBLIC HEALTH NEEDS OF PERSONS IN COLORADO.
23 (2) A FUND TO BE KNOWN AS THE COLORADO HEALTH CARE TRUST
24 FUND, REFERRED TO IN THIS SECTION AS THE TRUST FUND, IS HEREBY
25 CREATED IN THE STATE TREASURY. THE PRINCIPAL OF THE TRUST FUND
26 SHALL CONSIST OF:
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1 (a) ALL MONEYS TRANSMITTED ANNUALLY TO THE STATE
2 TREASURER IN ACCORDANCE WITH THE TERMS OF THE MASTER
3 SETTLEMENT AGREEMENT, THE SMOKELESS TOBACCO MASTER SETTLEMENT
4 AGREEMENT, AND THE CONSENT DECREE APPROVED AND ENTERED BY THE
5 COURT IN THE CASE DENOMINATED STATE OF COLORADO, EX REL. GALE A.
6 NORTON, ATTORNEY GENERAL V. R.J. REYNOLDS TOBACCO CO.; AMERICAN
7 TOBACCO CO., INC.; BROWN & WILLIAMSON TOBACCO CORP.; LIGGETT
8 GROUP, INC.; LORILLARD TOBACCO COMPANY; PHILLIP MORRIS, INC.;
9 UNITED STATES TOBACCO CO.; B.A.T. INDUSTRIES, P.L.C.; THE COUNCIL
10 FOR TOBACCO RESEARCH--U.S.A., INC.; AND TOBACCO INSTITUTE, INC.,
11 CASE NO. 97 CV 3432, IN THE DISTRICT COURT FOR THE CITY AND COUNTY
12 OF DENVER; AND
13 (b) ALL INVESTMENT EARNINGS DERIVED FROM THE DEPOSIT AND
14 INVESTMENT OF MONEYS IN THE TRUST FUND.
15 (3) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (6) OF THIS
16 SECTION, THE PRINCIPAL OF THE TRUST FUND SHALL NOT BE EXPENDED OR
17 APPROPRIATED FOR ANY PURPOSE.
18 (4) BEGINNING SEPTEMBER 1 OF THE YEAR FOLLOWING THE FISCAL
19 YEAR IN WHICH MONEYS ARE FIRST CREDITED TO THE TRUST FUND AND ON
20 SEPTEMBER 1 OF EACH YEAR THEREAFTER, THE STATE TREASURER SHALL
21 CERTIFY TO THE GENERAL ASSEMBLY THE AGGREGATE AMOUNT OF
22 PRINCIPAL IN THE TRUST FUND AS OF THE IMMEDIATELY PRECEDING JULY
23 1.
24 (5) SUBJECT TO THE PROVISIONS OF THIS SUBSECTION (5), A
25 PORTION OF THE AGGREGATE AMOUNT OF PRINCIPAL IN THE TRUST FUND
26 SHALL BE SUBJECT TO ANNUAL APPROPRIATION BY THE GENERAL
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1 ASSEMBLY AND, EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH (b) OF
2 SUBSECTION (7) OF THIS SECTION, SHALL BE APPROPRIATED ONLY FOR
3 PUBLIC HEALTH PURPOSES, WHICH MAY INCLUDE BUT IS NOT LIMITED TO
4 PUBLIC HEALTH CARE PURPOSES. IN NO EVENT SHALL THE AMOUNT OF
5 MONEYS APPROPRIATED FROM THE TRUST FUND IN ANY GIVEN FISCAL YEAR
6 EXCEED AN AMOUNT EQUAL TO SIX PERCENT OF THE AGGREGATE AMOUNT
7 OF PRINCIPAL IN THE TRUST FUND AS CERTIFIED BY THE STATE TREASURER
8 ON SEPTEMBER 1 PRIOR TO SUCH FISCAL YEAR.
9 (6) AT THE END OF ANY GIVEN FISCAL YEAR, ANY UNAPPROPRIATED
10 MONEYS IN THE TRUST FUND SHALL REMAIN THEREIN AND SHALL NOT
11 REVERT TO THE GENERAL FUND.
12 (7) (a) THIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2009.
13 (b) (I) NO LATER THAN JULY 1, 2008, THE PRESIDENT OF THE
14 SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES SHALL
15 APPOINT A SPECIAL COMMITTEE OF NO MORE THAN TEN MEMBERS,
16 COMPRISED OF AN EQUAL NUMBER OF MEMBERS OF EACH HOUSE, FOR THE
17 PURPOSE OF DETERMINING WHETHER THERE IS A PUBLIC NEED FOR THE
18 CONTINUED EXISTENCE OF THE TRUST FUND. IN PERFORMING ITS DUTIES,
19 SAID COMMITTEE SHALL HOLD PUBLIC HEARINGS TO RECEIVE TESTIMONY
20 FROM THE PUBLIC AND GOVERNMENT OFFICIALS.
21 (II) WHEN THE GENERAL ASSEMBLY IS NOT IN REGULAR OR SPECIAL
22 SESSION, MEMBERS OF THE COMMITTEE SHALL BE REIMBURSED FOR
23 NECESSARY EXPENSES IN CONNECTION WITH THE PERFORMANCE OF THEIR
24 DUTIES AND SHALL BE PAID THE SAME PER DIEM AS OTHER MEMBERS OF
25 INTERIM LEGISLATIVE COMMITTEES FOR EACH DAY OF ATTENDANCE. ANY
26 EXPENSES REIMBURSED OR PER DIEM PAID PURSUANT TO THIS
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1 SUBPARAGRAPH (II) SHALL BE MADE FROM THE AMOUNT OF MONEYS THAT
2 ARE ANNUALLY APPROPRIATED FROM THE TRUST FUND IN ACCORDANCE
3 WITH SUBSECTION (5) OF THIS SECTION.
4 24-36-120. Legislative declaration - status of principal of
5 Colorado health care trust fund for purposes of section 20 of article
6 X of the state constitution. (1) THE GENERAL ASSEMBLY HEREBY FINDS
7 AND DECLARES THAT:
8 (a) IN 1992, THE VOTERS OF THIS STATE APPROVED SECTION 20 OF
9 ARTICLE X OF THE STATE CONSTITUTION, WHICH LIMITS FISCAL YEAR
10 SPENDING OF STATE AND LOCAL GOVERNMENT;
11 (b) SECTION 20 (2) (e) OF ARTICLE X DEFINES "FISCAL YEAR
12 SPENDING" TO INCLUDE ALL REVENUE AND EXPENDITURES EXCEPT THOSE
13 FOR REFUNDS AND THOSE FROM CERTAIN SOURCES, SUCH AS FEDERAL
14 FUNDS AND DAMAGE AWARDS;
15 (c) IN EXERCISING ITS LEGISLATIVE PREROGATIVE TO ENACT
16 LEGISLATION TO IMPLEMENT SECTION 20 OF ARTICLE X AS IT RELATES TO
17 STATE GOVERNMENT, THE GENERAL ASSEMBLY ENACTED ARTICLE 77 OF
18 THIS TITLE DURING THE 1993 REGULAR SESSION;
19 (d) AS PART OF THIS IMPLEMENTING LEGISLATION, THE GENERAL
20 ASSEMBLY DEFINED CERTAIN TERMS THAT WERE NECESSARY FOR THE
21 IMPLEMENTATION OF SECTION 20 OF ARTICLE X BUT WERE NOT DEFINED BY
22 THE CONSTITUTIONAL PROVISION;
23 (e) THE GENERAL ASSEMBLY DEFINED "DAMAGE AWARD" TO
24 INCLUDE ANY PECUNIARY COMPENSATION RECEIVED BY THE STATE AS A
25 RESULT OF ANY JUDGMENT OR ALLOWANCE IN FAVOR OF THE STATE;
26 (f) THE EXCLUSION FROM FISCAL YEAR SPENDING OF MONETARY
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1 AWARDS TO THE STATE AS THE RESULT OF COURT ACTION IS CONSISTENT
2 WITH THE PURPOSE OF SECTION 20 OF ARTICLE X, WHICH IS TO PROTECT
3 TAXPAYERS FROM UNWARRANTED TAX INCREASES, SINCE SUCH MONETARY
4 AWARDS ARE NOT REVENUE RAISED BY THE STATE FROM TAXPAYERS;
5 (g) THE INCLUSION IN FISCAL YEAR SPENDING OF REVENUE OVER
6 WHICH THE STATE HAS NO CONTROL MIGHT IMPERIL OTHER GOVERNMENT
7 PROJECTS AND PROGRAMS, SINCE FLUCTUATIONS IN SUCH REVENUE CAN
8 CAUSE THE STATE TO EXCEED ITS CONSTITUTIONAL SPENDING LIMIT AND
9 THE REFUND OF EXCESS REVENUE COULD TAKE AWAY FROM ANOTHER PART
10 OF THE STATE'S BUDGET;
11 (h) DUE TO THIS POTENTIAL IMPACT, THE INCLUSION OF SUCH
12 MONETARY AWARDS IN FISCAL YEAR SPENDING WOULD DISCOURAGE OR
13 PREVENT THE STATE FROM PURSUING LEGAL ACTION TO PROTECT ITS
14 INTERESTS AS AUTHORIZED BY LAW;
15 (i) ALL OF THE MONEYS RECEIVED BY THE STATE IN ACCORDANCE
16 WITH THE TERMS OF THE MASTER SETTLEMENT AGREEMENT, THE
17 SMOKELESS TOBACCO MASTER SETTLEMENT AGREEMENT, AND THE
18 CONSENT DECREE ENTERED BY THE COURT IN THE CASE DENOMINATED
19 STATE OF COLORADO, EX REL. GALE A. NORTON, ATTORNEY GENERAL V. R.J.
20 REYNOLDS TOBACCO CO.; AMERICAN TOBACCO CO., INC.; BROWN &
21 WILLIAMSON TOBACCO CORP.; LIGGETT GROUP INC.; LORILLARD TOBACCO
22 COMPANY; PHILLIP MORRIS, INC.; UNITED STATES TOBACCO CO.; B.A.T.
23 INDUSTRIES, P.L.C.; THE COUNCIL FOR TOBACCO RESEARCH --U.S.A., INC.;
24 AND TOBACCO INSTITUTE, INC., CASE NO. 97 CV 3432, IN THE DISTRICT
25 COURT FOR THE CITY AND COUNTY OF DENVER, AND CREDITED TO THE
26 COLORADO HEALTH CARE TRUST FUND CREATED IN SECTION 24-36-119,
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1 REFERRED TO IN THIS SECTION AS THE TRUST FUND, ARE IN SETTLEMENT OF
2 THE STATE OF COLORADO'S ANTITRUST, CONSUMER PROTECTION, PUBLIC
3 NUISANCE, RACKETEERING, AND OTHER STATUTORY CLAIMS FOR RELIEF
4 AGAINST DEFENDANTS IN SAID ACTION;
5 (j) THE STATE MAY DECIDE THAT IT BEST SERVES THE INTERESTS OF
6 THE CITIZENS OF THE STATE TO USE ALL OR A PORTION OF SUCH MONETARY
7 AWARDS TO THE STATE FOR THE PUBLIC HEALTH NEEDS OF PERSONS IN
8 COLORADO THROUGH PROGRAMS AND SERVICES PROVIDED ON THE LOCAL
9 GOVERNMENT LEVEL, AND THE INCLUSION OF SUCH MONETARY AWARDS
10 SO DISTRIBUTED IN A LOCAL GOVERNMENT'S FISCAL YEAR SPENDING
11 COULD PREVENT THE USE OF SUCH MONETARY AWARDS IN A MANNER THAT
12 BEST SERVES THE INTERESTS OF THE STATE'S CITIZENS;
13 (k) THE FACT THAT MONETARY AWARDS TO THE STATE ARE
14 DISTRIBUTED TO LOCAL GOVERNMENTS DOES NOT CHANGE THE
15 CHARACTER OF THESE MONETARY AWARDS OR THEIR EXCLUSION FROM
16 FISCAL YEAR SPENDING;
17 (l) MONETARY AWARDS TO THE STATE AS THE RESULT OF SAID
18 COURT ACTION SATISFY THE DEFINITION OF "DAMAGE AWARD" AND
19 THEREFORE ARE EXCLUDED FROM STATE AND LOCAL GOVERNMENT FISCAL
20 YEAR SPENDING; AND
21 (m) EARNINGS FROM THE DEPOSIT AND INVESTMENT OF SUCH
22 MONETARY AWARDS TO THE STATE ARE NOT RECEIVED AS A RESULT OF
23 SAID COURT ACTION AND THEREFORE ARE NOT "DAMAGE AWARDS", AS
24 THAT TERM IS USED IN SECTION 20 OF ARTICLE X, AND ARE INCLUDED IN
25 STATE AND LOCAL GOVERNMENT FISCAL YEAR SPENDING.
26 (2) (a) FOR PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE
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1 CONSTITUTION AND ARTICLE 77 OF THIS TITLE:
2 (I) ANY MONEYS CREDITED TO THE TRUST FUND IN ACCORDANCE
3 WITH SECTION 24-36-119 (2) (a) ARE DAMAGE AWARDS, AS DEFINED IN
4 SECTION 24-77-102 (2), AND ANY DAMAGE AWARDS CREDITED TO OR
5 EXPENDED FROM THE TRUST FUND IN ACCORDANCE WITH SECTION
6 24-36-119 ARE NOT INCLUDED IN STATE FISCAL YEAR SPENDING, AS
7 DEFINED IN SECTION 24-77-102 (17), FOR ANY STATE FISCAL YEAR; AND
8 (II) ANY INVESTMENT EARNINGS CREDITED TO THE TRUST FUND IN
9 ACCORDANCE WITH SECTION 24-36-119 (2) (b) ARE NOT DAMAGE
10 AWARDS, AS DEFINED IN SECTION 24-77-102 (2), AND ANY INVESTMENT
11 EARNINGS CREDITED TO THE TRUST FUND IN ACCORDANCE WITH SECTION
12 24-36-119 SHALL BE INCLUDED IN STATE FISCAL YEAR SPENDING FOR ANY
13 STATE FISCAL YEAR, NOTWITHSTANDING THE PROVISIONS OF SECTION
14 24-77-102 (17) TO THE CONTRARY.
15 (b) FOR PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE
16 CONSTITUTION:
17 (I) ANY MONEYS CREDITED TO THE TRUST FUND IN ACCORDANCE
18 WITH SECTION 24-36-119 (2) (a), EXPENDED IN ACCORDANCE WITH
19 SECTION 24-36-119, AND RECEIVED BY ANY LOCAL GOVERNMENT ARE
20 DAMAGE AWARDS AND ARE NOT INCLUDED IN THE FISCAL YEAR SPENDING
21 OF THE RECEIVING LOCAL GOVERNMENT FOR ANY BUDGET YEAR; AND
22 (II) ANY INVESTMENT EARNINGS CREDITED TO THE TRUST FUND IN
23 ACCORDANCE WITH SECTION 24-36-119 (2) (b), EXPENDED IN
24 ACCORDANCE WITH SECTION 24-36-119, AND RECEIVED BY ANY LOCAL
25 GOVERNMENT ARE NOT DAMAGE AWARDS AND ARE INCLUDED IN THE
26 FISCAL YEAR SPENDING OF THE RECEIVING LOCAL GOVERNMENT FOR ANY
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1 BUDGET YEAR.
2 SECTION 2. Effective date. This act shall take effect at 12:01
3 a.m. on the day following the expiration of the ninety-day period after
4 final adjournment of the general assembly that is allowed for submitting
5 a referendum petition pursuant to article V, section 1 (3) of the state
6 constitution; except that, if a referendum petition is filed against this act
7 or an item, section, or part of this act within such period, then the act,
8 item, section, or part, if approved by the people, shall take effect on the
9 date of the official declaration of the vote thereon by proclamation of the
10 governor.