SENATE AMENDMENT
    Bill No. CS for SB 1580
    Amendment No. ___   Barcode 791384
                            CHAMBER ACTION
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11  Senator Burt moved the following amendment:
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13         Senate Amendment (with title amendment) 
14         Delete everything after the enacting clause
15  
16  and insert:  
17         Section 1.  Present subsections (2) through (12) of
18  section 569.21, Florida Statutes, are redesignated as
19  subsections (4) through (14), respectively and new subsections
20  (2) and (3) are added to that section, to read:
21         569.21  Expenditure of tobacco settlement
22  proceeds.--The following guidelines shall be applied to the
23  expenditure of all funds paid to the State of Florida as a
24  result of litigation entitled The State of Florida et al. v.
25  American Tobacco Company et al., Case #95-1466AH, in the
26  Circuit Court of the Fifteenth Judicial Circuit, in and for
27  Palm Beach County:
28         (2)  The Governor, in consultation with the Attorney
29  General, shall submit a report to the President of the Senate,
30  the Speaker of the House of Representatives, the Comptroller,
31  and the Auditor General by October 1, 2001, on the status of
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    4:59 PM   04/27/01                               s1580.ju16.0a

SENATE AMENDMENT Bill No. CS for SB 1580 Amendment No. ___ Barcode 791384 1 the settlement agreement as amended, in the case of The State 2 of Florida et al. v. American Tobacco Company et al., Case 3 #95-1466AH, in the Circuit Court of the Fifteenth Judicial 4 Circuit, in and for Palm Beach County. The report shall 5 specifically describe and explain the settlement agreement's 6 formula for determining the amount of the annual tobacco 7 settlement payments and the application of the formula, 8 including: 9 (a) The information being used and that is necessary 10 for applying the formula, 11 (b) The appropriate independent sources being used and 12 what should be used to verify the actual volume of cigarette 13 shipments and the annual tobacco settlement payments, 14 (c) Each settling defendant's 1997 Net Operating 15 Profit Methodology and how the annual process is being applied 16 or should be applied to verify current net operating profit 17 against that methodology, including, but not limited to, the 18 State's access to applicable proprietary confidential business 19 information of the settling defendants, 20 (d) How the formula is being applied and should be 21 applied at the payment date, including any estimation 22 methodology that is being used and should be used to 23 facilitate timely receipt of the annual tobacco settlement 24 payments, and 25 (e) The process being used and the process that should 26 be used to revise prior annual tobacco settlement payments for 27 adjustments to the applied settlement formula; changes in 28 estimates of the Consumer Price Index, Actual Volume, and net 29 operating profit; and other adjustments for properly applying 30 the formula and how that process specified the due dates and 31 interest terms to be applied to amounts due as a result of 2 4:59 PM 04/27/01 s1580.ju16.0a
SENATE AMENDMENT Bill No. CS for SB 1580 Amendment No. ___ Barcode 791384 1 such payment revisions. 2 (3) The Comptroller shall receive representations from 3 the tobacco industry with respect to calculating the annual 4 tobacco-settlement payments. The Comptroller, in consultation 5 with the Governor's Office, shall verify the representations 6 from the tobacco industry, verify the annual payment amounts 7 by applying the terms of the settlement agreement to the 8 submitted industry representations, and appropriately resolve 9 inconsistencies. The Comptroller may obtain contractual 10 services, funded by the Department of Banking and Finance 11 Tobacco Settlement Trust Fund, necessary to verify the 12 representations from the tobacco industry. 13 (a) If the Comptroller determines that there has been 14 an overpayment by a settling defendant pursuant to the 15 settlement agreement, and the Auditor General confirms the 16 overpayment, the Comptroller shall notify the Governor, the 17 Senate and the House of Representatives of such overpayment. 18 Upon approval by the Legislative Budget Commission, a refund 19 shall be made to the respective settling defendant for the 20 overpayment by the Comptroller. 21 (b) If the Comptroller determines that there has been 22 an underpayment by a settling defendant pursuant to the 23 settlement agreement, and the Auditor General confirms the 24 underpayment, the Comptroller shall notify the Governor, the 25 Senate, the House of Representatives, and the Attorney General 26 of such underpayment. Within 10 days of the notification the 27 Attorney General shall request the respective settling 28 defendant to pay the underpayment. If within 40 days after the 29 request for payment, the settling defendant has not made 30 payment or entered into an agreement with the Attorney General 31 and the Governor for a method of payment, the Attorney General 3 4:59 PM 04/27/01 s1580.ju16.0a
SENATE AMENDMENT Bill No. CS for SB 1580 Amendment No. ___ Barcode 791384 1 shall institute proceedings to collect the amount owed the 2 State. 3 (c) The Auditor General shall annually review the 4 state's process for verifying the annual tobacco settlement 5 payments and confirm that the payments were properly made in 6 accordance with the settlement agreement. The Auditor General 7 shall report on such confirmation and any deviation from such 8 process to the Governor, the President of the Senate, the 9 Speaker of the House of Representatives and the Attorney 10 General. 11 12 13 ================ T I T L E A M E N D M E N T =============== 14 And the title is amended as follows: 15 Delete everything before the enacting clause 16 17 and insert: 18 An act relating to proceeds from the tobacco 19 settlement; amending s. 569.21, F.S.; requiring 20 the Governor in consultation with the Attorney 21 General to report by a date certain on the 22 status of the tobacco settlement agreement and 23 the formula for calculating the annual 24 payments; requiring the Comptroller to receive 25 representations from the tobacco industry which 26 are used to calculate the annual payments and 27 to verify such representations; requiring the 28 Comptroller to notify the Governor, the Senate 29 and the House of Representatives of any 30 overpayment or underpayment; authorizing any 31 refund of overpayment subject to approval by 4 4:59 PM 04/27/01 s1580.ju16.0a
SENATE AMENDMENT Bill No. CS for SB 1580 Amendment No. ___ Barcode 791384 1 Legislative Budget Commission; requiring 2 Attorney General to demand balance of any 3 underpayment; directing Attorney General to 4 institute action to collect unpaid 5 underpayment; requiring the Auditor General to 6 annually review State's process for 7 verification of representations, to confirm 8 that settlement payments are being made in 9 accordance with the settlement agreement and to 10 report to the Governor, the Legislature and the 11 Attorney General regarding such confirmation; 12 redesignating the Comptroller as the Chief 13 Financial Officer to conform to a revision of 14 the State Constitution; providing effective 15 dates. 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 5 4:59 PM 04/27/01 s1580.ju16.0a