2013 Session

Budget Amendments - HB1500 (Committee Approved)

View Budget Item
View Budget Item amendments

Transfer Arbitration Settlement from Va. Tobacco Settlement Fund (language only)

Item 3-1.01 #1h

Item 3-1.01 #1h

Interfund Transfers

Page 483,
after line 4, insert:
"PP. On or before June 30, 2013, the State Comptroller shall transfer $4,437,000 from the Virginia Tobacco Settlement Fund to the general fund from the arbitration settlement with tobacco companies as part of the Master Settlement Agreement ."

(This amendment transfers $4.4 million in fiscal year 2013 in increased revenue in fiscal year 2013 from the Master Settlement Agreement (MSA) with tobacco manufacturers as a result of a recent tentative agreement. Many states have been involved in arbitration for some time over a dispute with tobacco companies regarding non-participating manufacturer adjustments. In December 2012, 17 states entered into a preliminary settlement with tobacco companies. If approved by the arbitration panel in fiscal year 2013, Virginia will receive a one-time increase in revenue as a result of previously withheld payments being released from escrow. The Office of the Attorney General projects Virginia's MSA payment will be $172 million for fiscal year 2013, which is $52.2 million higher than currently projected. Of this amount 8.5 percent will be deposited to the Virginia Tobacco Settlement Fund. This additional funding shall be transferred to the general fund to be used for cancer research and to fund the costs associated with the enforcement efforts in the Office of the Attorney General related to the 1998 Tobacco Master Settlement Agreement.)