House Bill 4735

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    Florida House of Representatives - 1998                HB 4735

        By the Committee on General Government Appropriations and
    Representative K. Pruitt





  1                      A bill to be entitled

  2         An act relating to trust funds; creating s.

  3         17.41(1)(b) and (2), F.S., relating to tobacco

  4         clearing trust funds of the Department of

  5         Banking and Finance; creating the Tobacco

  6         Settlement Clearing Trust Fund within the

  7         department; providing for sources of moneys;

  8         providing for exemption from various service

  9         charges; providing purposes; providing for

10         investment of such moneys; providing for annual

11         carryforward of funds; proclaiming that the

12         trust fund is exempt from constitutional

13         termination; providing a directive to the

14         Division of Statutory Revision; providing an

15         effective date.

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

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19         Section 1.  Paragraph (b) of subsection (1) and

20  subsection (2) of section 17.41, Florida Statutes, are created

21  to read:

22         17.41  Tobacco clearing trust funds.--

23         (1)  The following trust funds are hereby created, to

24  be administered by the Department of Banking and Finance:

25         (b)  Tobacco Settlement Clearing Trust Fund.

26         1.  Funds to be credited to the trust fund shall

27  consist of the initial payment of $550 million and all

28  subsequent annual payments received by the state from

29  settlement of State of Florida v. American Tobacco Co., Case

30  No. 95-1466AH, in the Circuit Court for the Fifteenth Judicial

31  Circuit, in and for Palm Beach County, Florida. All moneys

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    Florida House of Representatives - 1998                HB 4735

    610-119-98






  1  received from the settlement, other than those deposited as

  2  provided in paragraph (a), shall be deposited into the trust

  3  fund and are exempt from the service charges imposed under s.

  4  215.20. Funds shall be used for the purposes that are

  5  permitted or required by the settlement, other than the

  6  purpose specified in paragraph (a). Disbursements to other

  7  trust funds shall be pursuant to legislative appropriation or

  8  an approved amendment to the department's operating budget

  9  pursuant to the provisions of chapter 216.

10         2.  The State Board of Administration shall invest and

11  reinvest the moneys in the trust fund in accordance with ss.

12  215.44-215.53. Costs and fees of the State Board of

13  Administration for providing such investment services shall be

14  deducted from the earnings accruing to the trust fund.

15         3.  Notwithstanding the provisions of s. 216.301 and

16  pursuant to s. 216.351, any balance in the trust fund at the

17  end of any fiscal year shall remain in the trust fund at the

18  end of that year and shall be available for carrying out the

19  purposes of the trust fund.

20         (2)  Pursuant to the provisions of s. 19(f)(3), Art.

21  III of the State Constitution, the trust funds listed in

22  subsection (1) are not subject to termination under s.

23  19(f)(2), Art. III of the State Constitution.

24         Section 2.  In editing manuscript for the next edition

25  of the official Florida Statutes, the Division of Statutory

26  Revision of the Joint Legislative Management Committee or its

27  successor shall incorporate within s. 17.41, Florida Statutes,

28  as created by this act, all tobacco clearing trust funds

29  created within the Department of Banking and Finance by

30  separate legislation, as required by Section 19(f)(1) of

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    Florida House of Representatives - 1998                HB 4735

    610-119-98






  1  Article III of the State Constitution, during the 1998 Regular

  2  Session of the Legislature or any extension thereof.

  3         Section 3.  This act shall take effect upon becoming a

  4  law.

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  7                          HOUSE SUMMARY

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      Creates the Tobacco Settlement Clearing Trust Fund within
  9    the Department of Banking and Finance. Provides for its
      sources of moneys and purposes. Provides for exemption
10    from various service charges. Provides for investment of
      moneys in the trust fund. Provides for annual
11    carryforward of funds. Proclaims that the trust fund is
      exempt from constitutional termination.
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