HB 643-FN – AS INTRODUCED
2007 SESSION
09/10
HOUSE BILL 643-FN
AN ACT relative to the distribution of tobacco settlement funds.
SPONSORS: Rep. Grassie, Straf 1; Rep. Hilliard, Straf 2; Rep. W. Chase, Ches 1
This bill changes the distribution of tobacco settlement funds over a 10-year period, in order to increase the amount distributed annually to the tobacco use prevention fund to 100 percent of tobacco settlement funds received and decrease the amount annually distributed to the education trust fund to zero.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
07-1066
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT relative to the distribution of tobacco settlement funds.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Tobacco Use Prevention Fund. RSA 126-K:15 is repealed and reenacted to read as follows:
126-K:15 Tobacco Use Prevention Fund.
I. There is hereby established in the office of the state treasurer a fund to be known as the tobacco use prevention fund. Tobacco settlement funds received by the state of New Hampshire shall be distributed between the tobacco use prevention fund and the education trust fund as follows:
(a) For fiscal year 2008, 10 percent shall be deposited in the tobacco use prevention fund and 90 percent shall be deposited in the education trust fund.
(b) For fiscal year 2009, 20 percent shall be deposited in the tobacco use prevention fund and 80 percent shall be deposited in the education trust fund.
(c) For fiscal year 2010, 30 percent shall be deposited in the tobacco use prevention fund and 70 percent shall be deposited in the education trust fund.
(d) For fiscal year 2011, 40 percent shall be deposited in the tobacco use prevention fund and 60 percent shall be deposited in the education trust fund.
(e) For fiscal year 2012, 50 percent shall be deposited in the tobacco use prevention fund and 50 percent shall be deposited in the education trust fund.
(f) For fiscal year 2013, 60 percent shall be deposited in the tobacco use prevention fund and 40 percent shall be deposited in the education trust fund.
(g) For fiscal year 2014, 70 percent shall be deposited in the tobacco use prevention fund and 30 percent shall be deposited in the education trust fund.
(h) For fiscal year 2015, 80 percent shall be deposited in the tobacco use prevention fund and 20 percent shall be deposited in the education trust fund.
(i) For fiscal year 2016, 90 percent shall be deposited in the tobacco use prevention fund and 10 percent shall be deposited in the education trust fund.
(j) For fiscal year 2016 and following fiscal years, 100 percent shall be deposited in the tobacco use prevention fund.
II. Moneys in this fund shall be nonlapsing and continually appropriated for tobacco use prevention and cessation programs, which shall include but not be limited to:
(a) Tobacco use prevention community programs and grants.
(b) Tobacco use prevention school programs and grants.
(c) Tobacco use prevention statewide programs and grants.
(d) Tobacco use cessation programs.
(e) Tobacco use prevention and cessation counter marketing.
(f) Evaluation of tobacco control initiatives.
(g) Administration and enforcement.
2 Education Trust Fund. Amend RSA 198:39, I(i) to read as follows:
(i) Tobacco settlement funds in the amount [of $40,000,000] annually determined under RSA 126-K:15, I.
3 Effective Date. This act shall take effect July 1, 2007.
LBAO
07-1066
Revised 02/01/07
HB 643 FISCAL NOTE
AN ACT relative to the distribution of tobacco settlement funds.
FISCAL IMPACT:
The Department of Health and Human Services states this bill will increase state restricted revenue and expenditures, and decrease state education trust fund revenue by an indeterminable amount in FY 2008 and each year thereafter. This bill will have no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
The Department of Health and Human Services states this bill changes the distribution of tobacco settlement funds over a ten year period which will increase the amount distributed annually to the tobacco use prevention fund, and decrease the amounts distributed annually to the education trust fund. The Department estimated the fiscal impact based on the Master Settlement Agreement (MSA) unadjusted base payment projected for FY 2008 of $55,300,000. The actual payment from the MSA is indeterminable due to the many formulas applied to state payments by the parameters of the MSA following a formula that is based on percentage of sales, volume and inflation adjustments, and non-participating manufacturer adjustments. The Department estimates the increase in allocations to the tobacco use prevention fund (and the corresponding decrease in allocations to the education trust fund) at $5,530,000 (10%) in FY 2008, $11,060,000 (20%) in FY 2009, $16,590,000 (30%) in FY 2010, and $22,120,000 (40%) in FY 2011. In each fiscal year thereafter, allocations to the tobacco use prevention fund will increase by an additional 10% until reaching 100% in FY 2016. The Department states the Tobacco Prevention and Control Program (TPCP) within the Division of Public Health Services (DPHS) is charged with oversight of comprehensive elements of tobacco prevention and control. Beginning in FY 2008, the Department states Tobacco Use Prevention funds would be used for:
• Funding 50% of the current Administrator I position (LG 27, step 5) who supervises TPCP staff;
• Two Health Promotion Advisors (LG 23) to coordinate state objectives across the local level and intra-divisional programs;
• One Assistant State Epidemiologist (LG 23) to assist with surveillance and evaluation using evidence-based survey tools including but not limited to the Adult Tobacco Survey, Middle School and High School Youth Risk Behavior Surveys and Youth Tobacco Surveys;
• One Program Specialist III (LG 23) dedicated to assisting communities and businesses and industry to comply with the state Indoor Smoking Act and serve as point person to education as changes in laws occur; and
• One Program Specialist Assistant I (LG 16) position.
The bill does not create or establish new positions. Remaining funds will be distributed through contracts for services and projects such as community programs to reduce tobacco use; chronic disease integration; support for school prevention programs; surveillance and evaluation; dedicated cessation funding targeted at those most affected by tobacco use, including pregnant women; and funding for increasing awareness through media campaigns. Funds would also be used for other current expenses related to program expenditures, such as education materials and performance management systems. Assuming annual steps, and benefits at 48.3% of salary, the Department estimates the fiscal impact as follows:
Salaries $233,572 $243,800 $253,471 $265,783
Benefits $112,816 $117,776 $122,425 $127,850
Current Expense $84,890 $156,780 $228,670 $300,560
Rent $26,995 $29,010 $31,187 $33,527
In-State Travel $3,969 $3,969 $3,969 $3,969
Out-of-State Travel $3,969 $3,969 $3,969 $3,969
Equipment $21,000 $0 $0 $0
Contracts $5,042,789 $10,504,696 $15,946,309 $21,384,342
Total $5,530,000 $11,060,000 $16,590,000 $22,120,000