NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.



The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.



Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.





F I S C A L I M P A C T R E P O R T



SPONSOR: Griego DATE TYPED: 2-26-99 HB
SHORT TITLE: Tobacco Settlement Distributions SB 515
ANALYST: Taylor

REVENUE



Estimated Revenue
Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY99 FY2000
$ 0.0 $ (2,860.0) $ (7,640.0) Recurring General Fund
$ 0.0 $ 2,000.0 $ 5,348.0 Recurring Rural Health Care
$ 0.0 $ 860.0 $ 2,292.0 Recurring Ed Technology

(Parenthesis ( ) Indicate Revenue Decreases)



Duplicates/Conflicts with/Companion to/Relates to HB-501, HB-525 and SB-533

SOURCES OF INFORMATION



State Department of Education

Health Policy Commission



SUMMARY



Synopsis of Bill



Senate Bill 515 creates the rural health care fund and a rural set-aside account in the educational technology fund. Each year, beginning in FY 2000, it distributes 14 percent of tobacco settlement dollars accruing to the state to the rural health care fund and 6 percent to the rural set-aside account in the educational technology fund. Money in the rural health care fund must be used in rural areas (cities with a population less than 5000 and unincorporated areas of counties). Seventy percent of rural health fund money is made available to the Department of Health for primary care services and 30 percent for substance abuse programs. The educational technology dollars are restricted to rural school districts (school districts with less than six thousand students). The money is shared between these school districts based on their share of student enrollment.



FISCAL IMPLICATIONS



The fiscal implications shown on the table assume that the state receives $14.3 million from the tobacco settlement in FY 1999 and $38.2 million in FY 2000. These are the payments that the state is currently scheduled to receive. However, there is a possibility that they may be delayed until litigation pending in some large states is completed or until June 30, 2000, whichever occurs first.



The losses shown to the general fund are hypothetical in the sense that absent legislation directing the money elsewhere, the dollars will flow to the general fund.



ADMINISTRATIVE IMPLICATIONS



The State Department of Education reported no administrative impact. The Department of Health did not provide a bill analysis.



BT/gm