HOUSE BILL No. 6263


     August 13, 2002, Introduced by Rep. Richner and referred to the Committee on Appropriations.


        A bill to implement the provisions of section 36 of

   article IX of the state constitution of 1963 relating to the ded-

   ication of tobacco settlement revenue for improvement of health

   care; to create certain funds; to provide for the operation,

   investment, and expenditure of certain funds; and to impose cer-

   tain duties and requirements on certain state officials.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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             Sec. 1.  This act shall be known and may be cited as the

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        "tobacco settlement revenue expenditure and accountability act".

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             Sec. 2.  As used in this act, "funds" means each fund cre-

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        ated under section 3.

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             Sec. 3.  (1) The following funds are created pursuant to

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        section 36 of article IX of the state constitution of 1963:

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             (a) Tobacco free futures fund.




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             (b) Tobacco illness care fund.

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             (c) Tobacco settlement research and education fund.

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             (d) Senior citizen prescription drug assistance fund.

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             (2) The business that the funds may perform shall be con-

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        ducted at a public meeting held in compliance with the open meet-

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        ings act, 1976 PA 267, MCL 15.261 to 15.275.

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             (3) A writing prepared, owned, used, in the possession of,

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        or retained by the funds in the performance of an official func-

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        tion is subject to the freedom of information act, 1976 PA 442,

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        MCL 15.231 to 15.246.

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             (4) The funds shall do all of the following:

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             (a) Establish and maintain an internal accounting and admin-

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        istrative control system and prepare and submit reports in the

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        same manner as provided under the management and budget act, 1984

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        PA 431, MCL 18.1101 to 18.1594.

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             (b) Maintain all records, statements, and other reports in

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        accordance with generally accepted accounting principles imple-

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        mented to conform with requirements promulgated by the governmen-

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        tal accounting standards board, or its successor.  If there is a

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        conflict between the generally accepted accounting principles,

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        the principles adopted by the governmental accounting standards

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        board, or its successor, shall be used.

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             (c) File with the legislature, governor, and auditor general

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        an annual written report on its activities of the immediately

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        preceding year.  This report shall specify the activities of each

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        fund created under section 3, the amount and source of revenues





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        received, and a complete and cumulative accounting of the

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        expenditures from each fund created under section 3.

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             (d) Participate in the government finance officers associa-

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        tion awards for excellence program.

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             Sec. 5.  The funds shall be subject to a financial and per-

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        formance audit by the auditor general.

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             Sec. 7.  The funds shall not expend or distribute money from

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        its fund to any of the following:

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             (a) A public officer, agent, or contractor as extra compen-

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        sation for services already rendered.

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             (b) A person convicted of malfeasance, misfeasance, or abuse

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        of the public trust.

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             (c) A person or entity convicted of a crime involving fraud,

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        deception, ot other illegal fiscal practices.

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             Enacting section 1.  This act does not take effect unless

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        the proposed amendment to section 36 of article IX of the state

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        constitution of 1963 is approved by a majority of the electors

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        voting on the proposed amendment at the November 5, 2002 general

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        election.



















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