2008 Session

Budget Amendments - HB30 (Member Request)

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Chief Patron: O'Bannon
Co-Patron(s): BaCote, Cox, Janis, Morgan
Direct Use of Tobacco Strategic Contribution Payment (language only)

Item 470 #1h

Item 470 #1h

Central Appropriations
Central Appropriations

Page 419, line 37, strike "Commonwealth's Allocation" and insert:
"annual payment amount received by the Commonwealth".
Page 419, after line 44, insert:
"2.  Notwithstanding any other provision of law, the State Comptroller shall deposit 100 percent of the Commonwealth's allocation of the Strategic Contribution Fund payment pursuant to the Master Settlement Agreement with tobacco product manufacturers to the Virginia Tobacco Settlement Fund.  There is hereby appropriated a sum sufficient estimated at $8,730,000 the first year and $9,657,000 the second year from available balances in the Fund for the purposes set forth in § 32.1-361, Code of Virginia."
Page 419, line 45, strike "2" and insert "3".
Page 419, line 53, strike "Q" and insert "P.2".

(This amendment adds language directing the use of a new stream of payments the Commonwealth is expected to receive pursuant to the Master Settlement Agreement with tobacco product manufacturers. The Master Settlement Agreement requires that a Strategic Contribution Fund payment be made to states beginning in 2008 and continuing through 2017. These Strategic Contribution Fund payments are intended to reflect the level of the contribution each state made toward final resolution of their lawsuit against the tobacco companies. Virginia's payments are estimated to be approximately $8.7 to $9.7 million annually. Language is added which directs that 100 percent of the Strategic Contribution Fund payments to Virginia be provided to the Virginia Tobacco Settlement Fund for purposes set out in the Code of Virginia including financing efforts to restrict the use of tobacco products by minors through educational and awareness programs on the health effects of tobacco use and enforcement of laws restricting the distribution of tobacco products to minors. A technical change is made referencing the correct paragraph in Part 3 which directs the transfer of funds from the Tobacco Settlement Fund to the Office of the Attorney general for expenses related to the enrocement of the MSA agreement.)