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91_HB2924
LRB9108568DJcsC
1 AN ACT concerning proceeds from tobacco litigation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Health First Plan Act.
6 Section 5. Definition. In this Act, "Master Settlement
7 Agreement" means the Master Settlement Agreement entered in
8 the case of the People of the State of Illinois v. Philip
9 Morris et al. (Circuit Court of Cook County, No. 96-L13146).
10 Section 10. Tobacco Settlement Recovery Fund. There is
11 created in the State Treasury a special fund to be known as
12 the Tobacco Settlement Recovery Fund into which shall be
13 deposited all moneys paid to the State pursuant to (1) the
14 Master Settlement Agreement and (2) any settlement with or
15 judgment against any tobacco product manufacturer other than
16 one participating in the Master Settlement Agreement in
17 satisfaction of any released claim as defined in the Master
18 Settlement Agreement, as well as any other moneys as provided
19 by law. All earnings on Fund investments shall be deposited
20 into the Fund. Upon the creation of the Fund, the State
21 Treasurer shall transfer into the Fund any moneys paid to the
22 State as described in item (1) or (2) of this Section before
23 the creation of the Fund plus any interest earned on the
24 investment of those moneys.
25 Section 15. Moneys set aside for investment.
26 (a) The General Assembly finds that it is important to
27 save a portion of the moneys paid to the State under the
28 Master Settlement Agreement to protect the State from
29 financial hardship in the future due to less favorable
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1 economic conditions, to provide reserves that may be used to
2 supplement moneys distributed under Section 20 of this Act,
3 or to finance other programs and services that the General
4 Assembly may authorize as provided in subsection (g) of this
5 Section.
6 (b) In each of fiscal years 2000 and 2001, 50% of the
7 moneys received by the State under the Master Settlement
8 Agreement shall be set aside for investment to foster growth
9 of those moneys so as to generate additional revenue that
10 will sustain distributions into the special funds established
11 under Section 20 over a longer period of time. In subsequent
12 fiscal years, the 50% that is set aside for investment in
13 each of the first 2 fiscal years shall be decreased by 2
14 percentage points per year for 25 years so that at the end of
15 that period all moneys received by the State under the Master
16 Settlement Agreement each fiscal year will be distributed
17 into the special funds.
18 (c) The State Treasurer shall manage all moneys set
19 aside for investment under this Section. The Treasurer may
20 invest the moneys in the same manner, in the same types of
21 investments, and subject to the same limitations as provided
22 in the Illinois Pension Code for the investment of pension
23 funds other than those established under Article 3 or 4 of
24 that Code.
25 (d) The State Treasurer shall develop, publish, and
26 implement an investment policy covering the investment of the
27 moneys in the Tobacco Settlement Recovery Fund. The Treasurer
28 shall cause the policy to be published at least once each
29 year in at least one newspaper of general circulation in both
30 Springfield and Chicago. At least 30 calendar days before
31 implementing any change in the previously published
32 investment policy, the Treasurer shall cause the change to be
33 published in a newspaper of general circulation in both
34 Springfield and Chicago. In the case of a State Treasurer
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1 taking office after the effective date of this Act, within 90
2 days after taking office, the Treasurer shall review and, if
3 necessary, update the investment policy then in effect.
4 (e) All earnings on moneys set aside for investment
5 under this Section, less expenses incurred by the Treasurer
6 in administering the Fund, shall be retained in the Tobacco
7 Settlement Recovery Fund. The earnings shall not be included
8 in any amounts automatically distributed into the special
9 funds each fiscal year under Section 20 but shall be
10 allocated only in accordance with substantive legislation
11 enacted by the General Assembly from time to time as
12 circumstances and the State's needs dictate.
13 (f) The total expenses incurred by the State Treasurer
14 in administering the Tobacco Settlement Recovery Fund may not
15 exceed $200,000 before January 1, 2002. In 2002 and in each
16 year thereafter, the limit on the Treasurer's expenses
17 incurred in administering the Fund shall be adjusted based on
18 the Consumer Price Index for the North Central Region as
19 published by the United States Department of Labor, Bureau of
20 Labor Statistics, for the immediately preceding calendar
21 year.
22 (g) Except as provided in subsection (f) of Section 35
23 and except as otherwise provided by law, moneys appropriated
24 from the Tobacco Settlement Recovery Fund must be used for
25 purposes for which moneys appropriated from the special funds
26 established under Section 20 may be used. Moneys in the
27 Tobacco Settlement Recovery Fund may be appropriated for a
28 purpose other than a purpose for which moneys appropriated
29 from the special funds established under Section 20 may be
30 used, but any such appropriation for another purpose must be
31 approved by a three-fifths majority of each house.
32 Section 20. Moneys distributed into special funds.
33 (a) The following are created as special funds in the
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1 State treasury:
2 (1) The Smoking/Tobacco Control Trust Fund.
3 (2) The Healthy Communities Trust Fund.
4 (3) The Seniors/Disabled Choices Trust Fund.
5 (4) The Healthy Schools Trust Fund.
6 (5) The Health and Medicine Endowment Fund.
7 (6) The Health Infrastructure Fund.
8 (b) In each of fiscal years 2000 and 2001, 50% of the
9 moneys received by the State under the Master Settlement
10 Agreement shall be distributed, immediately upon receipt,
11 into the special funds established under subsection (a). In
12 subsequent fiscal years, the 50% that is distributed into the
13 special funds in each of the first 2 fiscal years shall be
14 increased by 2 percentage points per year for 25 years so
15 that at the end of that period all moneys received by the
16 State under the Master Settlement Agreement each fiscal year
17 will be distributed into the special funds. For purposes of
18 this Section, the moneys to be distributed into the special
19 funds in any fiscal year are the "moneys for distribution".
20 (c) In each fiscal year, the moneys for distribution
21 shall be distributed into the special funds established under
22 subsection (a) as follows:
23 (1) Thirty percent of the moneys for distribution
24 shall be distributed into the Smoking/Tobacco Control
25 Trust Fund for community-based programs and services
26 administered by local nonprofit agencies, public
27 universities, and local health departments to control
28 tobacco use and distribution, to conduct smoking
29 cessation programs, and to provide addiction treatment,
30 according to budget guidelines issued by the U.S. Centers
31 for Disease Control.
32 (2) Twenty percent of the moneys for distribution
33 shall be distributed into the Healthy Communities Trust
34 Fund for expansion of community and family health
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1 programs administered by various State agencies,
2 including, but not limited to: maternal and child health
3 programs, including services targeted to at-risk pregnant
4 women and newborns and infants; early childhood programs;
5 expanded coverage of children and families under the
6 Children's Health Insurance Program Act; financial aid
7 for urban and rural programs targeted to designated
8 shortage areas, as defined in the Illinois
9 Rural/Downstate Health Act; health programs targeted at
10 minorities; and HIV/AIDS control and prevention programs.
11 (3) Twenty percent of the moneys for distribution
12 shall be distributed into the Seniors/Disabled Choices
13 Trust Fund for home and community-based long-term care
14 services authorized under the Illinois Act on the Aging,
15 the Disabled Persons Rehabilitation Act, and the
16 Developmental Disability and Mental Disability Services
17 Act and for financial assistance provided to the elderly
18 or disabled including, but not limited to, expansion of
19 eligibility and coverage under the Senior Citizens and
20 Disabled Persons Property Tax Relief and Pharmaceutical
21 Assistance Act.
22 (4) Ten percent of the moneys for distribution shall
23 be distributed into the Healthy Schools Trust Fund for
24 primary and preventive health and mental health programs
25 for pre-school and school-age children coordinated by the
26 State Board of Education, including, but not limited to,
27 a program of smoking prevention and cessation that either
28 employs certificated school nurses or employs registered
29 professional nurses enrolled in an Illinois certificated
30 school nurse program.
31 (5) Ten percent of the moneys for distribution shall
32 be distributed into the Health and Medicine Endowment
33 Fund for allocation to at least 7 universities located in
34 Illinois to fund research on tobacco-related illnesses
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1 such as cancer, cardiovascular disease, and pulmonary
2 disease and to enhance programs administered by schools
3 of public health in relation to tobacco control, smoking
4 prevention, and smoking cessation. A portion of the
5 moneys distributed into this Fund shall also be used for
6 graduate medical education and for programs for students
7 pursuing careers in primary care and family medicine in
8 underserved communities.
9 (6) Ten percent of the moneys for distribution shall
10 be distributed into the Health Infrastructure Fund for
11 health-related capital financing for the purpose of
12 establishment, construction, or modification of essential
13 health facilities and services and also including the
14 acquisition, replacement, or upgrading of medical
15 equipment or vehicles. This financing may include the
16 distribution of funds for health-related capital
17 financing in the form of direct grants, security to
18 underwrite capital development bonds, or security to
19 underwrite loan pools for small businesses.
20 (d) Moneys in each of the special funds established
21 under subsection (a) shall be spent only according to
22 appropriations to the Illinois Tobacco Funds Authority made
23 by the General Assembly. The Authority shall use moneys
24 appropriated from the Smoking/Tobacco Control Trust Fund, the
25 Healthy Communities Trust Fund, the Senior/Disabled Choices
26 Trust Fund, the Healthy Schools Trust Fund, and the Health
27 Infrastructure Fund to award grants and contracts for
28 programs and services according to its policies, standards,
29 and procedures established under Section 35. The Authority
30 shall use moneys appropriated from the Health and Medicine
31 Endowment Fund to award research grants and contracts to
32 universities located in Illinois, also according to those
33 policies, standards, and procedures.
34 (e) Moneys unspent and remaining in a special fund at
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1 the end of a fiscal year shall be carried over for
2 reappropriation and expenditure in subsequent fiscal years.
3 Section 25. Review of distributions. The General
4 Assembly may from time to time examine the amounts
5 distributed into the special funds established under Section
6 20 and allocated to programs, services, and universities and
7 may alter the schedule of decreases in the percentage of
8 moneys set aside for investment and the corresponding
9 schedule of increases in the percentage of moneys distributed
10 into the special funds, as circumstances and the State's
11 needs dictate.
12 Section 30. Treasurer's certification of amounts. Each
13 year, based on the amount paid to the State in that year
14 pursuant to the Master Settlement Agreement, the State
15 Treasurer shall certify to the General Assembly the portion
16 of that amount to be set aside for investment under Section
17 15 and the portion of that amount to be distributed into each
18 of the special funds established under Section 20.
19 Section 35. Tobacco Funds Authority.
20 (a) The Illinois Tobacco Funds Authority ("the
21 Authority") is created. The Authority shall be composed of 5
22 members appointed by the Governor with the advice and consent
23 of the Senate. The Governor shall appoint the members within
24 3 months after the effective date of this Act. The Governor
25 shall initially appoint 2 members for terms of 2 years and 3
26 members for terms of 4 years. Thereafter, the Governor shall
27 appoint all members for terms of 4 years. If a vacancy
28 occurs in the office of a member, the Governor shall appoint
29 a person to fill the remainder of the unexpired term. The
30 Governor's appointments must reflect a political balance.
31 (b) A member may not have a financial interest in an
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1 entity that receives or may receive moneys allocated from one
2 of the special funds established under Section 20, nor may a
3 member have a financial interest in any other entity that
4 benefits or may benefit from the allocation of those moneys.
5 (c) Members of the Authority may be reimbursed for their
6 reasonable expenses actually incurred in performing their
7 duties.
8 (d) The Authority shall establish policies, standards,
9 and procedures to govern the allocation of moneys
10 appropriated from the special funds established under Section
11 20. Those policies, standards, and procedures shall include
12 provisions for evaluating applicants for grants or contracts
13 funded with those moneys. The Authority also shall establish
14 clear performance and evaluation standards to be applied to
15 recipients of those moneys to measure the results of the
16 allocations from the special funds and to determine future
17 funding of programs and services from those funds. The
18 Authority must evaluate the performance of every applicant
19 for and recipient of moneys appropriated from one of the
20 special funds and must conduct the evaluation before
21 awarding, continuing, or renewing a grant or contract.
22 (e) The Authority shall employ an executive director and
23 other staff necessary for processing and overseeing grants
24 and contracts funded with moneys appropriated from the
25 special funds established under Section 20.
26 (f) The General Assembly shall appropriate moneys for
27 the Authority's operation from the moneys in the Tobacco
28 Settlement Recovery Fund that are set aside for investment
29 under Section 15 or from the earnings on those moneys.
30 Section 40. Comptroller's annual report. The State
31 Comptroller shall include, in the annual report required
32 under Section 20 of the State Comptroller Act, an accounting
33 of all amounts spent from each of the special funds
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1 established under Section 20.
2 Section 45. Audit of special funds. At least once during
3 every biennium, as provided in Section 3-2 of the Illinois
4 State Auditing Act, the Auditor General shall conduct a
5 financial audit of all expenditures from the special funds
6 established under Section 20.
7 Section 50. Legislative Research Unit responsibilities.
8 As provided in Section 10-2 of the Legislative Commission
9 Reorganization Act of 1984, the Legislative Research Unit
10 shall evaluate the annual allocations and expenditures of
11 moneys from the special funds established under Section 20
12 and shall conduct program evaluations to determine the impact
13 of the system for distributing moneys paid to the State under
14 the Master Settlement Agreement.
15 Section 900. The State Comptroller Act is amended by
16 changing Section 20 as follows:
17 (15 ILCS 405/20) (from Ch. 15, par. 220)
18 Sec. 20. Annual report. The comptroller shall annually,
19 as soon as possible after the close of the fiscal year but no
20 later than December 31, make out and present to the Governor,
21 the President of the Senate, the Speaker of the House of
22 Representatives, the Minority Leader of the Senate, and the
23 Minority Leader of the House of Representatives a report,
24 showing the amount of warrants drawn on the treasury, on
25 other funds held by the State Treasurer and on any public
26 funds held by State agencies, during the preceding fiscal
27 year, and stating, particularly, on what account they were
28 drawn, and if drawn on the contingent fund, to whom and for
29 what they were issued. The comptroller shall include in the
30 annual report an accounting of all amounts spent from each
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1 of the special funds established under Section 20 of the
2 Health First Plan Act. He shall, also, at the same time,
3 report to the Governor, the President of the Senate, the
4 Speaker of the House of Representatives, the Minority Leader
5 of the Senate, and the Minority Leader of the House of
6 Representatives the amount of money received into the
7 treasury, into other funds held by the State Treasurer and
8 into any other funds held by State agencies during the
9 preceding fiscal year, and stating particularly, the source
10 from which the same may be derived, and also a general
11 account of all the business of his office during the
12 preceding fiscal year. The report shall also summarize for
13 the previous fiscal year the information required under
14 Section 19.
15 Within 60 days after the expiration of each calendar
16 year, the comptroller shall compile, from records maintained
17 and available in his office, a list of all persons including
18 those employed in the office of the comptroller, who have
19 been employed by the State during the past calendar year and
20 paid from funds in the hands of the State Treasurer.
21 The list shall be arranged according to counties and
22 shall state in alphabetical order the name of each employee,
23 the address in the county in which he votes, except as
24 specified below, the position and the total salary paid to
25 him during the past calendar year. For persons employed by
26 the Department of Corrections, Department of Children and
27 Family Services and the Department of State Police no address
28 shall be listed. The list so compiled and arranged shall be
29 kept on file in the office of the comptroller and be open to
30 inspection by the public at all times.
31 No person who utilizes the names obtained from this list
32 for solicitation shall represent that such solicitation is
33 authorized by any officer or agency of the State of Illinois.
34 Violation of this provision is a Business Offense punishable
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1 by a fine not to exceed $3,000.
2 (Source: P.A. 86-1003.)
3 Section 910. The Legislative Commission Reorganization
4 Act of 1984 is amended by changing Section 10-2 as follows:
5 (25 ILCS 130/10-2) (from Ch. 63, par. 1010-2)
6 Sec. 10-2. The Legislative Research Unit shall collect
7 information concerning the government and general welfare of
8 the State, examine the effects of constitutional provisions
9 and previously enacted statutes, consider important issues of
10 public policy and questions of state-wide interest, and
11 perform research and provide information as may be requested
12 by the members of the General Assembly or as the Joint
13 Committee on Legislative Support Services considers necessary
14 or desirable.
15 The Legislative Research Unit shall maintain an
16 up-to-date computerized record of the information required to
17 be reported to it by Section 1 of "An Act concerning State
18 boards and commissions and amending a named Act", enacted by
19 the 86th General Assembly, which information shall be a
20 public record under The Freedom of Information Act. The
21 Legislative Research Unit may prescribe forms for making
22 initial reports and reports of change under that Section, and
23 may request information to verify compliance with that
24 Section.
25 Each year, the Legislative Research Unit shall evaluate
26 the allocations and expenditures of moneys from the special
27 funds established under Section 20 of the Health First Plan
28 Act and shall conduct program evaluations to determine the
29 impact of the system for distributing moneys paid to the
30 State under the Master Settlement Agreement as defined in
31 that Act. The Legislative Research Unit may enter into
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1 contracts with public or private entities to conduct the
2 evaluations. The Legislative Research Unit shall report the
3 evaluation findings each year to the General Assembly.
4 (Source: P.A. 86-591.)
5 Section 915. The Illinois State Auditing Act is amended
6 by changing Section 3-2 as follows:
7 (30 ILCS 5/3-2) (from Ch. 15, par. 303-2)
8 Sec. 3-2. Mandatory and directed post audits. The
9 Auditor General shall conduct a financial audit of each State
10 agency except the Auditor General or his office at least once
11 during every biennium, except as is otherwise provided in
12 regulations adopted under Section 3-8. At least once during
13 every biennium, the Auditor General shall conduct a financial
14 audit of all expenditures from the special funds established
15 under Section 20 of the Health First Plan Act. The general
16 direction and supervision of the financial audit program may
17 be delegated only to an individual who is a Certified Public
18 Accountant and a payroll employee of the Office of the
19 Auditor General. In the conduct of financial audits, the
20 Auditor General may inquire into and report upon matters
21 properly within the scope of a management or program audit,
22 provided that such inquiry shall be limited to matters
23 arising during the ordinary course of the financial audit.
24 In any year the Auditor General shall conduct any special
25 audits as may be necessary to form an opinion on the
26 financial report of this State, as prepared by the
27 Comptroller, and to certify that this presentation is in
28 accordance with generally accepted accounting principles for
29 government.
30 Simultaneously with the biennial financial audit of the
31 Department of Human Services, the Auditor General shall
32 conduct a program audit of each facility under the
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1 jurisdiction of that Department that is described in Section
2 4 of the Mental Health and Developmental Disabilities
3 Administrative Act. The program audit shall include an
4 examination of the records of each facility concerning
5 reports of suspected abuse or neglect of any patient or
6 resident of the facility. The Auditor General shall report
7 the findings of the program audit to the Governor and the
8 General Assembly, including findings concerning patterns or
9 trends relating to abuse or neglect of facility patients and
10 residents. However, for any year for which the Inspector
11 General submits a report to the Governor and General Assembly
12 as required under Section 6.7 of the Abused and Neglected
13 Long Term Care Facility Residents Reporting Act, the Auditor
14 General need not conduct the program audit otherwise required
15 under this paragraph.
16 The Auditor General shall conduct a management or program
17 audit of a State agency when so directed by the Commission,
18 or by either house of the General Assembly, in a resolution
19 identifying the subject, parties and scope. Such a directing
20 resolution may:
21 (a) require the Auditor General to examine and
22 report upon specific management efficiencies or cost
23 effectiveness proposals specified therein;
24 (b) in the case of a program audit, set forth
25 specific program objectives, responsibilities or duties
26 or may specify the program performance standards or
27 program evaluation standards to be the basis of the
28 program audit;
29 (c) be directed at particular procedures or
30 functions established by statute, by administrative
31 regulation or by precedent; and
32 (d) require the Auditor General to examine and
33 report upon specific proposals relating to state programs
34 specified in the resolution.
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1 The Commission may by resolution clarify, further direct,
2 or limit the scope of any audit directed by a resolution of
3 the House or Senate, provided that any such action by the
4 Commission must be consistent with the terms of the directing
5 resolution.
6 (Source: P.A. 89-427, eff. 12-7-95; 89-507, eff. 7-1-97.)
7 Section 920. The State Finance Act is amended by adding
8 Sections 5.540, 5.541, 5.542, 5.543, 5.544, 5.545, and 5.546
9 as follows:
10 (30 ILCS 105/5.540 new)
11 Sec. 5.540. The Tobacco Settlement Recovery Fund.
12 (30 ILCS 105/5.541 new)
13 Sec. 5.541. The Smoking/Tobacco Control Trust Fund.
14 (30 ILCS 105/5.542 new)
15 Sec. 5.542. The Healthy Communities Trust Fund.
16 (30 ILCS 105/5.543 new)
17 Sec. 5.543. The Seniors/Disabled Choices Trust Fund.
18 (30 ILCS 105/5.544 new)
19 Sec. 5.544. The Healthy Schools Trust Fund.
20 (30 ILCS 105/5.545 new)
21 Sec. 5.545. The Health and Medicine Endowment Fund.
22 (30 ILCS 105/5.546 new)
23 Sec. 5.546. The Health Infrastructure Fund.
24 Section 999. Effective date. This Act takes effect upon
25 becoming law.
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