2013 Session

Budget Amendments - SB800 (Conference Report)

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

Item 3-1.01 #1c

Item 3-1.01 #1c

Interfund Transfers

Page 483,
after line 4, insert:
"PP. On or before June 30, 2013, the State Comptroller shall transfer $3,937,000 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 $3.9 million in additional revenue to the general fund in fiscal year 2013 as a result of a tentative agreement with tobacco manufacturers related to the Master Settlement Agreement (MSA). Under current law, 8.5 percent of MSA revenues are deposited to the Virginia Tobacco Settlement Fund. This amendment provides $500,000 of new revenues to the Virginia Healthy Youth Foundation and $3.9 million to the general fund. 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.)