Tobacco Settlement Fund - Disease Prevention And Health Promotion - CA Health And Safety

Section § 104896

This section specifies the definitions relevant to a certain part of the Health and Safety Code related to tobacco settlements. The "Fund" refers to the Tobacco Settlement Fund. The "Master Settlement Agreement" is the agreement from November 23, 1998, between the state and major U.S. tobacco companies. The "State's share of funds" is the portion of the settlement money intended for state use, excluding funds allocated to counties or local areas.

Additionally, the law clarifies that spending on programs isn't limited to just what's available in the fund.

(a) As used in this part, the following definitions shall apply:

(1) “Fund” means the Tobacco Settlement Fund.

(2) “Master Settlement Agreement” means the settlement agreement and related documents entered into on November 23, 1998, by the state and leading United States tobacco product manufacturers.

(3) “State’s share of funds” means that portion of payments received from the Master Settlement Agreement designated for use by the state and shall not include those funds designated for distribution to the counties or other local jurisdictions.

(b) Nothing in this part is intended to limit expenditures for programs to the amount provided by the fund.

Tobacco Settlement Fund Master Settlement Agreement state's share of funds tobacco settlement payments state expenditures settlement fund definitions U.S. tobacco manufacturers local jurisdiction funds fund disbursement 1998 settlement agreement tobacco product manufacturers program funding limitations

(Added by Stats. 2001, Ch. 171, Sec. 10. Effective August 10, 2001.)

Section § 104897

This law sets up the Tobacco Settlement Fund in California's State Treasury.

For the fiscal year 2001-2002, over $401 million from the state's share of the tobacco settlement is deposited into this fund.

Starting July 1, 2002, all of California's share from the tobacco settlement agreement goes into this fund, with some exceptions noted in another law.

(a) There is hereby established in the State Treasury the Tobacco Settlement Fund.

(b) In the 2001–02 fiscal year, four hundred one million nine hundred ninety-two thousand dollars ($401,992,000) of the state’s share of funds received pursuant to the Master Settlement Agreement shall be deposited in the fund.

(c) Except as provided in Article 7 (commencing with Section 63049) of Chapter 2 of Division 1 of Title 6.7 of the Government Code, commencing July 1, 2002, the total amount of the state’s share of moneys received pursuant to the Master Settlement Agreement shall be deposited in the fund.

Tobacco Settlement Fund Master Settlement Agreement state treasury fiscal year 2001-02 tobacco settlement funds state's share monies received deposit $401 992 000 July 1 2002 Article 7 exceptions

(Amended by Stats. 2002, Ch. 414, Sec. 3. Effective January 1, 2003.)

Section § 104898

This part of the California Health and Safety Code explains how money from a specific fund is meant to be used. The Legislature decides each year how this money will be spent. The funds are designated for health-related purposes, including expanding programs like Medi-Cal and the Healthy Families Program.

Additionally, the money can be used for health education, reducing tobacco use, smoking cessation services, enforcing tobacco laws, and enhancing primary care services for low-income and uninsured residents.

(a) Distribution of moneys from the fund shall be made by annual appropriation of the Legislature consistent with the requirements of this part.

(b) Moneys appropriated from the fund shall be used for health purposes, including all of the following:

(1) Health care expansions in the Medi-Cal program, Healthy Families Program, and other state programs.

(2) Health care education and outreach, including, but not limited to, efforts to help reduce the use of tobacco products.

(3) Smoking cessation services.

(4) Enforcement of tobacco-related statutes.

(5) Expansions to primary care and other state-funded clinics that serve low-income, uninsured, or underinsured Californians.

health care funding Medi-Cal expansion Healthy Families Program health education tobacco use reduction smoking cessation tobacco statute enforcement primary care expansion low-income healthcare state-funded clinics uninsured healthcare underinsured support health outreach programs annual appropriation Legislature funding decisions

(Added by Stats. 2001, Ch. 171, Sec. 10. Effective August 10, 2001.)

Section § 104898.5

The law outlines a financial arrangement where, if California hasn't received its payment from the Master Settlement Agreement by a certain time, up to $100 million can be temporarily moved from the state's General Fund to the Tobacco Settlement Fund as a loan. This loan is interest-free and must be repaid by June 30 each year using the funds that are eventually received from the Master Settlement Agreement.

(a) Notwithstanding any other provision of law, there shall be transferred annually from the General Fund to the Tobacco Settlement Fund an amount, not to exceed one hundred million dollars ($100,000,000) out of funds not otherwise appropriated, as a loan to cover appropriations from the fund when moneys from the Master Settlement Agreement have not been received by the state.

(b) This loan from the General Fund shall be repaid on or before June 30 of each year, without interest, from the funds received pursuant to the Master Settlement Agreement.

Tobacco Settlement Fund General Fund loan Master Settlement Agreement annual transfer interest-free loan fund appropriation state budget financial arrangement repayment deadline June 30 repayment temporary fund transfer California budget management

(Amended by Stats. 2003, Ch. 230, Sec. 9. Effective August 11, 2003.)

Section § 104899

Money received from the Tobacco Settlement Fund is considered part of the general state funds. This classification is specifically for reporting purposes when it comes to funding in-home supportive services and calculating vehicle license fees.

Revenue accruing to the Tobacco Settlement Fund pursuant to this part shall be deemed revenue to the General Fund solely for the purpose of certifications of General Fund revenue for purposes of subdivision (e) of Section 12306.1 of the Welfare and Institutions Code with respect to in-home supportive services program and Section 10754 of the Revenue and Taxation Code with respect to vehicle license fees.

Tobacco Settlement Fund general fund revenue in-home supportive services vehicle license fees Section 12306.1 Welfare Code Section 10754 Revenue Code California funding revenue certification supportive services program financial classification public funding settlement funds taxation code impact state budget government revenue

(Added by Stats. 2001, Ch. 171, Sec. 10. Effective August 10, 2001.)