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General Assembly Substitute Bill No. 399
February Session, 2022
AN ACT CONCERNING THE TOBACCO SETTLEMENT TRUST FUND
AND THE SALE OF TOBACCO PRODUCTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 4-28e of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2022): 2
(a) There is created a Tobacco Settlement Fund which shall be a 3
separate nonlapsing fund. Any funds received by the state from the 4
Master Settlement Agreement executed November 23, 1998, shall be 5
deposited into the fund. 6
(b) (1) The Treasurer is authorized to invest all or any part of the 7
Tobacco Settlement Fund, all or any part of the Tobacco and Health 8
Trust Fund created in section 4-28f, as amended by this act, and all or 9
any part of the Biomedical Research Trust Fund created in section 19a-10
32c. The interest derived from any such investment shall be credited to 11
the resources of the fund from which the investment was made. 12
(2) Notwithstanding sections 3-13 to 3-13h, inclusive, the Treasurer 13
shall invest the amounts on deposit in the Tobacco Settlement Fund, the 14
Tobacco and Health Trust Fund and the Biomedical Research Trust 15
Fund in a manner reasonable and appropriate to achieve the objectives 16
of such funds, exercising the discretion and care of a prudent person in 17 Substitute Bill No. 399
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similar circumstances with similar objectives. The Treasurer shall give 18
due consideration to rate of return, risk, term or maturity, 19
diversification of the total portfolio within such funds, liquidity, the 20
projected disbursements and expenditures, and the expected payments, 21
deposits, contributions and gifts to be received. The Treasurer shall not 22
be required to invest such funds directly in obligations of the state or 23
any political subdivision of the state or in any investment or other fund 24
administered by the Treasurer. The assets of such funds shall be 25
continuously invested and reinvested in a manner consistent with the 26
objectives of such funds until disbursed in accordance with this section, 27
section 4-28f, as amended by this act, or section 19a-32c. 28
(c) [For] Commencing with the fiscal year ending June 30, [2018, and 29
each fiscal year thereafter,] 2023, annual disbursements from the 30
Tobacco Settlement Fund shall be made [to] as follows: (1) To the 31
General Fund in the amount identified as "Transfer from Tobacco 32
Settlement Fund" in the General Fund revenue schedule adopted by the 33
General Assembly; and (2) to the Tobacco and Health Trust Fund in an 34
amount equal to twelve million dollars. 35
[(d) For the fiscal year ending June 30, 2000, five million dollars shall 36
be disbursed from the Tobacco Settlement Fund to a tobacco grant 37
account to be established in the Office of Policy and Management. Such 38
funds shall not lapse on June 30, 2000, and shall continue to be available 39
for expenditure during the fiscal year ending June 30, 2001. 40
(e) Tobacco grants shall be made from the account established 41
pursuant to subsection (d) of this section by the Secretary of the Office 42
of Policy and Management in consultation with the speaker of the 43
House of Representatives, the president pro tempore of the Senate, the 44
majority leader of the House of Representatives, the majority leader of 45
the Senate, the minority leader of the House of Representatives, the 46
minority leader of the Senate, and the cochairpersons and ranking 47
members of the joint standing committees of the General Assembly 48
having cognizance of matters relating to public health and 49
appropriations and the budgets of state agencies, or their designees. 50 Substitute Bill No. 399
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Such grants shall be used to reduce tobacco abuse through prevention, 51
education, cessation, treatment, enforcement and health needs 52
programs.] 53
[(f)] (d) For the fiscal year ending June 30, 2005, and each fiscal year 54
thereafter, the sum of one hundred thousand dollars is appropriated to 55
the Department of Revenue Services and the sum of twenty-five 56
thousand dollars is appropriated to the office of the Attorney General 57
for the enforcement of the provisions of sections 4-28h to 4-28q, 58
inclusive. 59
Sec. 2. Section 4-28f of the general statutes is repealed and the 60
following is substituted in lieu thereof (Effective July 1, 2022): 61
(a) There is created a Tobacco and Health Trust Fund which shall be 62
a separate nonlapsing fund. The purpose of the trust fund shall be to 63
create a continuing significant source of funds to (1) support and 64
encourage development of programs to reduce tobacco abuse through 65
prevention, education and cessation programs, (2) support and 66
encourage development of programs to reduce substance abuse, and (3) 67
develop and implement programs to meet the unmet physical and 68
mental health needs in the state. 69
(b) The trust fund may accept transfers from the Tobacco Settlement 70
Fund and may apply for and accept gifts, grants or donations from 71
public or private sources to enable the trust fund to carry out its 72
objectives. 73
(c) The trust fund shall be administered by a board of trustees, except 74
that the board shall suspend its operations from July 1, 2003, to June 30, 75
2005, inclusive. The board shall consist of seventeen trustees. The 76
appointment of the initial trustees shall be as follows: (1) The Governor 77
shall appoint four trustees, one of whom shall serve for a term of one 78
year from July 1, 2000, two of whom shall serve for a term of two years 79
from July 1, 2000, and one of whom shall serve for a term of three years 80
from July 1, 2000; (2) the speaker of the House of Representatives and 81 Substitute Bill No. 399
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the president pro tempore of the Senate each shall appoint two trustees, 82
one of whom shall serve for a term of two years from July 1, 2000, and 83
one of whom shall serve for a term of three years from July 1, 2000; (3) 84
the majority leader of the House of Representatives and the majority 85
leader of the Senate each shall appoint two trustees, one of whom shall 86
serve for a term of one year from July 1, 2000, and one of whom shall 87
serve for a term of three years from July 1, 2000; (4) the minority leader 88
of the House of Representatives and the minority leader of the Senate 89
each shall appoint two trustees, one of whom shall serve for a term of 90
one year from July 1, 2000, and one of whom shall serve for a term of 91
two years from July 1, 2000; and (5) the Secretary of the Office of Policy 92
and Management, or the secretary's designee, shall serve as an ex-officio 93
voting member. Following the expiration of such initial terms, 94
subsequent trustees shall serve for a term of three years. The period of 95
suspension of the board's operations from July 1, 2003, to June 30, 2005, 96
inclusive, shall not be included in the term of any trustee serving on July 97
1, 2003.The trustees shall serve without compensation except for 98
reimbursement for necessary expenses incurred in performing their 99
duties. The board of trustees shall establish rules of procedure for the 100
conduct of its business which shall include, but not be limited to, 101
criteria, processes and procedures to be used in selecting programs to 102
receive money from the trust fund. The trust fund shall be within the 103
Office of Policy and Management for administrative purposes only. The 104
board of trustees shall, not later than January first of each year [, except 105
following a fiscal year in which the trust fund does not receive a deposit 106
from the Tobacco Settlement Fund, shall] submit a report of its activities 107
and accomplishments to the joint standing committees of the General 108
Assembly having cognizance of matters relating to public health and 109
appropriations and the budgets of state agencies, in accordance with 110
section 11-4a. 111
(d) (1) [During the period commencing July 1, 2000, and ending June 112
30, 2003, the board of trustees, by majority vote, may recommend 113
authorization of disbursement from the trust fund for the purposes 114
described in subsection (a) of this section and section 19a-6d, provided 115 Substitute Bill No. 399
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the board may not recommend authorization of disbursement of more 116
than fifty per cent of net earnings from the principal of the trust fund for 117
such purposes. For the fiscal year commencing July 1, 2005, and each 118
fiscal year thereafter, the board may recommend authorization of the 119
net earnings from the principal of the trust fund for such purposes. For 120
the fiscal year ending June 30, 2009, and each fiscal year thereafter, the 121
board may recommend authorization of disbursement for such 122
purposes of (A) up to one-half of the annual disbursement from the 123
Tobacco Settlement Fund to the Tobacco and Health Trust Fund from 124
the previous fiscal year, pursuant to section 4-28e, up to a maximum of 125
six million dollars per fiscal year, and (B) the net earnings from the 126
principal of the trust fund from the previous fiscal year.] For the fiscal 127
year ending June 30, [2014] 2023, and each fiscal year thereafter, the 128
board of trustees, by majority vote, [may] shall recommend 129
authorization of disbursement [of up to the total unobligated balance 130
remaining in the trust fund after disbursement in accordance with the 131
provisions of the general statutes and relevant special and public acts 132
for such purposes, not to exceed twelve million dollars per fiscal year] 133
from the trust fund of the amount deposited in the trust fund for the 134
fiscal year pursuant to subsection (c) of section 4-28e, as amended by 135
this act, for the purposes described in subsection (a) of this section and 136
section 19a-6d. The board's recommendations shall give (i) priority to 137
programs that address tobacco and substance abuse and serve minors, 138
pregnant women and parents of young children, and (ii) consideration 139
to the availability of private matching funds. Recommended 140
disbursements from the trust fund shall be in addition to any resources 141
that would otherwise be appropriated by the state for such purposes 142
and programs. 143
(2) [Except during the fiscal years ending June 30, 2004, and June 30, 144
2005, the] The board of trustees shall submit such recommendations for 145
the authorization of disbursement from the trust fund to the joint 146
standing committees of the General Assembly having cognizance of 147
matters relating to public health and appropriations and the budgets of 148
state agencies. Not later than thirty days after receipt of such 149 Substitute Bill No. 399
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recommendations, said committees shall advise the board of their 150
approval, modifications, if any, or rejection of the board's 151
recommendations. If said joint standing committees do not concur, the 152
speaker of the House of Representatives, the president pro tempore of 153
the Senate, the majority leader of the House of Representatives, the 154
majority leader of the Senate, the minority leader of the House of 155
Representatives and the minority leader of the Senate each shall appoint 156
one member from each of said joint standing committees to serve as a 157
committee on conference. The committee on conference shall submit its 158
report to both committees, which shall vote to accept or reject the report. 159
The report of the committee on conference may not be amended. If a 160
joint standing committee rejects the report of the committee on 161
conference, the board's recommendations shall be deemed approved. If 162
the joint standing committees accept the report of the committee on 163
conference, the joint standing committee having cognizance of matters 164
relating to appropriations and the budgets of state agencies shall advise 165
the board of said joint standing committees' approval or modifications, 166
if any, of the board's recommended disbursement. If said joint standing 167
committees do not act within thirty days after receipt of the board's 168
recommendations for the authorization of disbursement, such 169
recommendations shall be deemed approved. Disbursement from the 170
trust fund shall be in accordance with the board's recommendations as 171
approved or modified by said joint standing committees. 172
(3) After such recommendations for the authorization of 173
disbursement have been approved or modified pursuant to subdivision 174
(2) of this subsection, any modification in the amount of an authorized 175
disbursement in excess of fifty thousand dollars or ten per cent of the 176
authorized amount, whichever is less, shall be submitted to said joint 177
standing committees and approved, modified or rejected in accordance 178
with the procedure set forth in subdivision (2) of this subsection. 179
Notification of all disbursements from the trust fund made pursuant to 180
this section shall be sent to the joint standing committees of the General 181
Assembly having cognizance of matters relating to public health and 182
appropriations and the budgets of state agencies, through the Office of 183 Substitute Bill No. 399
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Fiscal Analysis. 184
(4) The board of trustees shall [, not later than February first of each 185
year , except following a fiscal year in which the trust fund does not 186
receive a deposit from the Tobacco Settlement Fund,] submit a biennial 187
report to the joint standing committees of the General Assembly having 188
cognizance of matters relating to public health and appropriations and 189
the budgets of state agencies, in accordance with the provisions of 190
section 11-4a. [, that includes] Such report shall include, but need not be 191
limited to, an accounting of the unexpended amount in the trust fund, 192
if any, all disbursements and other expenditures from the trust fund and 193
an evaluation of the performance and impact of each program receiving 194
funds from the trust fund. Such report shall also include the criteria and 195
application process used to select programs to receive such funds. 196
Sec. 3. Section 53-344 of the general statutes is repealed and the 197
following is substituted in lieu thereof (Effective July 1, 2022): 198
(a) As used in this section: 199
(1) "Cardholder" means any person who presents a driver's license or 200
an identity card to a seller or seller's agent or employee, to purchase or 201
receive tobacco from such seller or seller's agent or employee; 202
(2) "Cigarette" has the same meaning as provided in subsection (b) of 203
section 12-285; 204
(3) "Identity card" means an identification card issued in accordance 205
with the provisions of section 1-1h; 206
(4) "Sale" has the same meaning as provided in section 53-344b; 207
(5) "Give" or "giving" has the same meaning as provided in section 208
53-344b; 209
(6) "Deliver" or "delivering" has the same meaning as provided in 210
section 53-344b; 211 Substitute Bill No. 399
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(7) "Seller" means any person engaged in the sale, giving or delivering 212
of cigarettes or tobacco products; 213
(8) "Tobacco products" has the same meaning as provided in section 214
12-330a; 215
(9) "Transaction scan" means the process by which a seller or seller's 216
agent or employee checks, by means of a transaction scan device, the 217
validity of a driver's license or an identity card; and 218
(10) "Transaction scan device" means any commercial device or 219
combination of devices used at a point of sale that is capable of 220
deciphering in an electronically readable format the information 221
encoded on the magnetic strip or bar code of a driver's license or an 222
identity card. 223
(b) Any person who sells, gives or delivers to any person under 224
twenty-one years of age cigarettes or a tobacco product shall be fined 225
not more than three hundred dollars for the first offense, not more than 226
seven hundred fifty dollars for a second offense on or before twenty-227
four months after the date of the first offense and not more than one 228
thousand dollars for each subsequent offense on or before twenty-four 229
months after the date of the first offense. The provisions of this 230
subsection shall not apply to a person under twenty-one years of age 231
who is delivering or accepting delivery of cigarettes or a tobacco 232
product (1) in such person's capacity as an employee, or (2) as part of a 233
scientific study being conducted by an organization for the purpose of 234
medical research to further efforts in cigarette and tobacco product use 235
prevention and cessation, provided such medical research has been 236
approved by the organization's institutional review board, as defined in 237
section 21a-408. 238
(c) Any person under twenty-one years of age who misrepresents 239
such person's age to purchase cigarettes or a tobacco product shall be 240
fined not more than fifty dollars for the first offense and not less than 241
fifty dollars or more than one hundred dollars for each subsequent 242 Substitute Bill No. 399
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offense. 243
(d) (1) A seller or seller's agent or employee shall request that each 244
person intending to purchase cigarettes or a tobacco product present a 245
driver's license or identity card to establish that such person is twenty-246
one years of age or older. 247
[(d) (1)] (2) A seller or seller's agent or employee may perform a 248
transaction scan to check the validity of a driver's license or identity card 249
presented by a cardholder as a condition for selling, giving away or 250
otherwise distributing cigarettes or a tobacco product to the cardholder. 251
[(2)] (3) If the information deciphered by the transaction scan 252
performed under subdivision [(1)] (2) of this subsection fails to match 253
the information printed on the driver's license or identity card presented 254
by the cardholder, or if the transaction scan indicates that the 255
information so printed is false or fraudulent, neither the seller nor any 256
seller's agent or employee shall sell, give away or otherwise distribute 257
any cigarettes or a tobacco product to the cardholder. 258
[(3)] (4) Subdivision [(1)] (2) of this subsection does not preclude a 259
seller or seller's agent or employee from using a transaction scan device 260
to check the validity of a document other than a driver's license or an 261
identity card, if the document includes a bar code or magnetic strip that 262
may be scanned by the device, as a condition for selling, giving away or 263
otherwise distributing cigarettes or a tobacco product to the person 264
presenting the document. 265
(e) (1) No seller or seller's agent or employee shall electronically or 266
mechanically record or maintain any information derived from a 267
transaction scan, except the following: (A) The name and date of birth 268
of the person listed on the driver's license or identity card presented by 269
a cardholder; and (B) the expiration date and identification number of 270
the driver's license or identity card presented by a cardholder. 271
(2) No seller or seller's agent or employee shall use a transaction scan 272
device for a purpose other than the purposes specified in subsection (e) 273 Substitute Bill No. 399
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of section 53-344b, subsection (d) of this section or subsection (c) of 274
section 30-86. 275
(3) No seller or seller's agent or employee shall sell or otherwise 276
disseminate the information derived from a transaction scan to any third 277
party, including, but not limited to, selling or otherwise disseminating 278
that information for any marketing, advertising or promotional 279
activities, but a seller or seller's agent or employee may release that 280
information pursuant to a court order. 281
(4) Nothing in subsection (d) of this section or this subsection relieves 282
a seller or seller's agent or employee of any responsibility to comply 283
with any other applicable state or federal laws or rules governing the 284
sale, giving away or other distribution of cigarettes or tobacco products. 285
(5) Any person who violates this subsection shall be subject to a civil 286
penalty of not more than one thousand dollars. 287
(f) (1) In any prosecution of a seller or seller's agent or employee for 288
a violation of subsection (b) of this section, it shall be an affirmative 289
defense that all of the following occurred: (A) A cardholder attempting 290
to purchase or receive cigarettes or a tobacco product presented a 291
driver's license or an identity card; (B) a transaction scan of the driver's 292
license or identity card that the cardholder presented indicated that the 293
license or card was valid and indicated that the cardholder was at least 294
twenty-one years of age; and (C) the cigarettes or a tobacco product was 295
sold, given away or otherwise distributed to the cardholder in 296
reasonable reliance upon the identification presented and the completed 297
transaction scan. 298
(2) In determining whether a seller or seller's agent or employee has 299
proven the affirmative defense provided by subdivision (1) of this 300
section, the trier of fact in such prosecution shall consider that 301
reasonable reliance upon the identification presented and the completed 302
transaction scan may require a seller or seller's agent or employee to 303
exercise reasonable diligence and that the use of a transaction scan 304 Substitute Bill No. 399
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device does not excuse a seller or seller's agent or employee from 305
exercising such reasonable diligence to determine the following: (A) 306
Whether a person to whom the seller or seller's agent or employee sells, 307
gives away or otherwise distributes cigarettes or a tobacco product is 308
twenty-one years of age or older; and (B) whether the description and 309
picture appearing on the driver's license or identity card presented by a 310
cardholder is that of the cardholder.311
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2022 4-28e
Sec. 2 July 1, 2022 4-28f
Sec. 3 July 1, 2022 53-344
APP Joint Favorable Subst.