[atlas:bill]

AN ACT Relating to moneys received by the state under litigation against the tobacco industry; amending RCW 43.84.092 and 43.84.092; adding new sections to chapter 43.79 RCW; adding new sections to chapter 43.70 RCW; creating a new section; providing an effective date; providing an expiration date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. A new section is added to chapter 43.79 RCW to read as follows:

The legislature recognizes that the citizens of the state of Washington have suffered substantial harm as a result of the marketing, sale, and use of tobacco products. Moneys received by the state of Washington in accordance with the settlement of the state's legal action against tobacco product manufacturers, exclusive of costs and attorneys' fees, shall be deposited in the tobacco settlement account created in section 2 of this act.

NEW SECTION. Sec. 2. A new section is added to chapter 43.79 RCW to read as follows:

The tobacco settlement account is created in the state treasury. Moneys in the tobacco settlement account may only be transferred to the health services account for the purposes set forth in RCW 43.72.900, and to the tobacco prevention and control account created in section 3 of this act, for purposes set forth in section 3 of this act.

NEW SECTION. Sec. 3. A new section is added to chapter 43.79 RCW to read as follows:

(1) The tobacco prevention and control account is created in the state treasury. The source of revenue for this account is moneys transferred to the account from the tobacco settlement account, investment earnings, and donations to the account.

(2) The tobacco prevention and control account shall be administered by the department of health, in consultation with the tobacco prevention and control advisory board created in section 4 of this act. Annually by November 1st, the department of health shall provide an accounting of the account for the prior fiscal year, to the fiscal committees of the legislature.

(3) Moneys in the account may be spent by the secretary of the department of health only for public health purposes relating to tobacco, including but not limited to enforcing prohibitions on tobacco sales to minors, countermarketing and advertising efforts relating to tobacco, school and community educational programs discouraging tobacco use, tobacco use cessation programs, research regarding tobacco related illnesses, and administrative expenses of the tobacco prevention and control board. Moneys in the account may be spent without appropriation.

(4) Expenditures from the account shall begin in fiscal year 2001, and for any fiscal year shall not exceed twenty million six hundred thousand dollars. These limitations shall not apply to appropriations from the account to the department of health, if any.

NEW SECTION. Sec. 4. A new section is added to chapter 43.70 RCW to read as follows:

There is hereby created the tobacco prevention and control advisory board to consist of fourteen members designated or appointed as provided in this section.

(1) The attorney general or the attorney general's designee.

(2) One member of the senate, designated by the president of the senate.

(3) One member of the house of representatives, designated by the speaker of the house of representatives.

(4) One member of the governor's policy staff, designated by the governor.

(5) Two members representing populations at risk for tobacco use, appointed by the governor. The initial term of appointment for one member is two years and for the other member, three years.

(6) Three members having demonstrated interest in and backgrounds beneficial to controlling and preventing the use of tobacco, appointed by the governor. The initial term of appointment for two members is two years and for the remaining member, three years.

(7) One tribal representative, appointed by the governor. The initial term of appointment is two years.

(8) Two members of the public health community, appointed by the secretary of the department of health. The initial term of appointment for one member is two years and for the second member, three years.

(9) The secretary of the department of health or the secretary's designee.

(10) The superintendent of public instruction or the superintendent's designee.

Any appointed member of the board remains a board member until his or her successor is appointed. Appointed members of the board may be reappointed for additional terms. Appointments for vacancies are made for the unexpired term, in the same manner as the original appointment. After the term of initial appointment, the term of appointed members of the board is three years. Any appointed member of the board may be removed for cause by the authority appointing that member.

The attorney general or the attorney general's designee shall serve as chair of the board for an initial two-year term. Thereafter, the board shall select a chair from among its members. The board shall adopt procedures for conducting its affairs and accomplishing its duties. Necessary administrative support for the board shall be provided by the department of health.

Members of the board who are state officers or employees shall serve without additional compensation or reimbursement for expenses. Such members shall be compensated and reimbursed for expenses by their employer and according to their regular position or employment. Members of the board who are not state officers or employees shall be reimbursed for expenses as provided in RCW 43.03.220.

NEW SECTION. Sec. 5. A new section is added to chapter 43.70 RCW to read as follows:

The board shall advise and assist the secretary of the department of health in developing, selecting, and evaluating strategies for the tobacco prevention and control efforts that are supported by the tobacco prevention and control account, and in monitoring selected strategies and efforts.

NEW SECTION. Sec. 6. The state treasurer is authorized and directed to transfer a total of one hundred fifty-five million dollars from the tobacco settlement account, to the tobacco prevention and control account, upon authorization of the director of financial management. The director shall authorize transfer of the total amount no later than June 30, 2001.

Sec. 7. RCW 43.84.092 and 1997 c 218 s 5 are each amended to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.

(3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan I account, the public employees' retirement system plan II account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan I account, the teachers' retirement system plan II account, the tobacco prevention and control account, the tobacco settlement account, the transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' relief and pension principal account, the volunteer fire fighters' relief and pension administrative account, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan I retirement account, the Washington law enforcement officers' and fire fighters' system plan II retirement account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the central Puget Sound public transportation account, the city hardship assistance account, the county arterial preservation account, the department of licensing services account, the economic development account, the essential rail assistance account, the essential rail banking account, the ferry bond retirement fund, the gasohol exemption holding account, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway construction stabilization account, the highway safety account, the marine operating fund, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the small city account, the special category C account, the state patrol highway account, the transfer relief account, the transportation capital facilities account, the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation revolving loan account, and the urban arterial trust account.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

Sec. 8. RCW 43.84.092 and 1998 c 341 s 708 are each amended to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan I account, the public employees' retirement system plan II account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan I account, the teachers' retirement system combined plan II and plan III account, the tobacco prevention and control account, the tobacco settlement account, the transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' relief and pension principal account, the volunteer fire fighters' relief and pension administrative account, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan I retirement account, the Washington law enforcement officers' and fire fighters' system plan II retirement account, the Washington school employees' retirement system combined plan II and III account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION. Sec. 9. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 10. Section 7 of this act expires September 1, 2000.

NEW SECTION. Sec. 11. (1) Sections 1 through 7 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately.

(2) Section 8 of this act takes effect September 1, 2000.