Senate Bill 1270e2

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    CS for SB 1270                                Second Engrossed



  1                      A bill to be entitled

  2         An act relating to tobacco settlement funds;

  3         providing for the use of revenues obtained as a

  4         result of the settlement of litigation

  5         involving the tobacco industry; providing for a

  6         lump sum from certain of such funds to be

  7         appropriated to the Department of Health to

  8         continue implementation of the Florida Kids

  9         Campaign Against Tobacco Pilot Program;

10         providing for distribution of funds in such

11         lump sum to specified agencies for specified

12         purposes; specifying guidelines to be applied

13         by the Legislature in expending funds paid to

14         the state as a result of the settlement of

15         litigation involving the tobacco industry;

16         appropriating funds received as a result of the

17         settlement of litigation by the State of

18         Florida against certain tobacco companies;

19         providing for the deposit of the funds;

20         requiring the Comptroller to enforce

21         appropriations made herein; providing exclusive

22         jurisdiction of such enforcement actions;

23         limiting intervention in such actions;

24         providing effective dates.

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26  Be It Enacted by the Legislature of the State of Florida:

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28         Section 1.  There is hereby appropriated a lump sum of

29  $70 million from the tobacco settlement revenues that were

30  received for the pilot program to the Department of Health to

31  continue implementation of the Florida Kids Campaign Against


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    CS for SB 1270                                Second Engrossed



  1  Tobacco Pilot Program in fiscal year 1998-1999. Funds in the

  2  lump sum shall be distributed to the following agencies for

  3  the following programs, subject to the notice, review, and

  4  objection provisions of section 216.177, Florida Statutes:

  5         (1)  To the Department of Health for marketing and

  6  communications. Such funds shall be used for a media campaign

  7  to create and promote messages urging youth to live tobacco

  8  free.

  9         (2)  To the Department of Health for a comprehensive

10  tobacco education and training initiative, directed toward

11  Florida youth in pre-K through grade 12. The initiative should

12  be created through collaborative efforts between the state,

13  local communities, voluntary agencies, school districts,

14  professional organizations, and the State University System

15  and should emphasize intensive, interactive, and coordinated

16  anti-tobacco curricula.

17         (3)  To the Department of Health for youth programs and

18  community partnerships. Such funds shall be used to develop

19  community partnerships through the county health departments

20  for implementing community-based tobacco prevention programs,

21  including the needs of the minority youth populations of the

22  state.

23         (4)  To the Department of Business and Professional

24  Regulation for enforcement of laws against underage tobacco

25  access and possession through a combination of program

26  development, research, and contracts with local law

27  enforcement agencies. Funding provided to the department shall

28  be used for the purposes of placing enforcement agents in

29  retail locations to deter youth purchasing of tobacco,

30  providing training of store employees, and providing for

31  enforcement efforts near schools.


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    CS for SB 1270                                Second Engrossed



  1         (5)  To the Department of Health for evaluation of each

  2  aspect of the pilot program. Funding provided shall be used to

  3  obtain baseline data on the prevalence of tobacco use among

  4  youth and for monitoring changes in tobacco utilization within

  5  this group.

  6         (6)  To the Department of Health or the Department of

  7  Business and Professional Regulation, as applicable, for

  8  coordination and program administration, not to exceed 5

  9  percent of the total funds appropriated in this section. The

10  Executive Office of the Governor may request Administration

11  Commission approval of positions in excess of the number of

12  positions fixed by the Legislature if necessary to implement

13  the approved distribution of funds provided in this section.

14  Positions established or redirected pursuant to this

15  subsection are to be vacated and held in reserve by the

16  Executive Office of the Governor upon completion of the

17  Florida Kids Campaign Against Tobacco Pilot Program.

18         Section 2.  The following guidelines shall be applied

19  to the expenditure of all funds paid to the State of Florida

20  as a result of litigation entitled The State of Florida et al.

21  v. American Tobacco Company et al., Case #95-1466AH, in the

22  Circuit Court of the Fifteenth Judicial Circuit, in and for

23  Palm Beach County:

24         (1)  The Legislature asserts its rights to appropriate

25  all funds paid or payable to the state through the tobacco

26  settlement. Before any funds are released, the Legislature

27  must approve all program and funding proposals.

28         (2)  A trust fund should be created solely for the

29  purpose of receiving and managing settlement funds, and a full

30  and complete record of all budget and expenditure actions

31  should be maintained.


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    CS for SB 1270                                Second Engrossed



  1         (3)  Administrative costs associated with programs and

  2  providers that receive funds from the tobacco settlement

  3  should be set at a reasonable level, consistent with

  4  best-management practices.

  5         (4)  Local law enforcement agencies, businesses, and

  6  school districts should be involved in enforcement efforts as

  7  appropriate to the mission of each organization.

  8         (5)  Funds received from the tobacco settlement may not

  9  be used for advertising that includes the name, voice, or

10  likeness of any elected or appointed public official.

11         (6)  Greater emphasis should be placed on funding

12  education, training, and enforcement programs than is placed

13  on the funding of advertising.

14         (7)  County health departments must administer funds

15  provided to each local coalition that is not specifically

16  granted an exemption by the Legislature. Exemptions from

17  requirements to administer coalition programs by county health

18  departments shall be limited to established administrative

19  entities that meet a test of several criteria established by

20  the Department of Health and may not include provider agencies

21  that could receive funding from the settlement.

22         (8)  Programs which raise matching funds should be

23  maximized in order to get the greatest leverage of state

24  funds.

25         (9)  Grant and contract processes should be competitive

26  and objective.

27         (10)  Requests for information or for proposals should

28  emphasize that performance measures will be required for all

29  contracts and grants.

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    CS for SB 1270                                Second Engrossed



  1         (11)  A substantial portion of the program should be

  2  character-based and focused on rewarding appropriate values

  3  and behavior in youth.

  4         (12)  Needs of the minority youth community in this

  5  state should be addressed.

  6         Section 3.  (1)  The $330,500,000, plus accrued

  7  interest and any other funds on deposit in accounts 3660512058

  8  and 3660510843 at NationsBank, N.A., pursuant to Escrow

  9  Agreement dated September 15, 1997, and raised as a result of

10  litigation entitled The State of Florida et al. vs. American

11  Tobacco Company, et al., Case #95-1466AH, in the Circuit Court

12  of the Fifteenth Judicial Circuit in and for Palm Beach

13  County, are funds of the State of Florida and are hereby

14  appropriated to the General Revenue Fund, and shall be

15  transferred to the Tobacco Settlement Trust Fund, if such fund

16  is created by law. Further, all subsequent payments made by

17  the settling defendants in said litigation are funds of the

18  State of Florida and are hereby appropriated to said trust

19  fund, or if such trust fund is not created by law, to the

20  General Revenue Fund.

21         (2)  This section shall take effect upon becoming a law

22  and shall supersede Section 16 of the 1998-1999 General

23  Appropriations Act.

24         Section 4.  (1)  The Comptroller shall enforce the

25  appropriation in Section 3 of this act by demanding payment

26  from the depository institution within 2 business days of such

27  section becoming law. If payment is not made within 2 business

28  days of such demand, the Comptroller shall forthwith bring an

29  action for a writ of mandamus or an action at law or such

30  other action as may be necessary to ensure that the state's

31  title to these funds is affirmed. Such action shall be filed


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    CS for SB 1270                                Second Engrossed



  1  in the circuit court of the Second Judicial Circuit, in and

  2  for Leon County, which circuit shall have exclusive

  3  jurisdiction thereof. Notice of such action shall be served

  4  upon any officer of the financial institution, or any other

  5  authorized service agent thereof, at any branch office thereof

  6  in Leon County. From and after the time this section becomes

  7  law, the depository institution is hereby and shall be

  8  prohibited from paying any of the respective funds to any

  9  person or entity other than the Comptroller of the State of

10  Florida until the final resolution of the action and any

11  appeal therefrom. No person who is not a party to the escrow

12  agreement under which the respective funds were deposited

13  shall be permitted to intervene in such action.

14         (2)  This section shall take effect upon becoming a

15  law. 

16         Section 5.  Except as otherwise provided herein, this

17  act shall take effect July 1 of the year in which enacted.

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