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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
SENATE JOINT
RESOLUTION 13 By: Standridge
AS INTRODUCED
A Joint Resolution directing the Secretary of State
to refer to the people for their approval or
rejection a proposed amend ment to Section 40 of
Article X of the Oklahoma Constitution ; decreasing
annual deposits into Tobacco Settlement Endo wment
Trust Fund; directing certain percentage of specified
payments to be deposited and expended for certain tax
credits and administrative costs; providing
exclusion; directing Oklahoma Tax Commission to
implement certain provisions ; providing ballot title;
and directing filing .
BE IT RESOLVED BY THE SENATE AND THE HOUSE OF RE PRESENTATIVES OF THE
1ST SESSION OF THE 58TH OKLAHOMA LEGISLATURE:
SECTION 1. The Secretary of State shall refer to the people for
their approval or rejection, as and in the manner provide d by law,
the following proposed amendment to Section 40 of Article X of the
Oklahoma Constitution to read as follows:
Section 40. A. There is hereby created a trust fund to be
known as the “Tobacco Settlement Endo wment Trust Fund”. The trust
fund principal shall consist of the portion of monies which a re
received by the State o f Oklahoma on or after Jul y 1, 2001, pursuant
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to any settlement with or judgment against any tobacco company or
companies as provided by su bsection B of this section, and any other
monies that may be appropriated or otherwise dire cted to the trust
fund by the Legislature.
B. 1. Deposits into the trust fund from monies which are
received by the State of Oklahoma pursuant to any settlement wi th or
judgment against any tobacco company or companies shall be based on
the following schedule:
Minimum Percentage
Fiscal Year of Payments
Ending June 30, 2002 50%
Ending June 30, 2003 55%
Ending June 30, 2004 60%
Ending June 30, 2005 65%
Ending June 30, 2006 70%
Ending June 30, 2007 75%
Ending June 30, 2024, and 63.75%
each fiscal year thereafter
2. Deposits into the trust fund in subsequent fiscal years
shall never be less t han seventy-five percent (75%) of the payments
Beginning July 1, 2023, fifteen percent (15%) of the payments shall
be deposited in a revolving fund established by the Le gislature
solely for the purpose of receiving the pa yments. Monies in the
revolving fund shall be expended solely for the purpose of providing
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a tax credit each year to residents of this state who have filed an
income tax return for the tax year , except for those residents who
were inmates in the custody o f the Department of Corrections, and
for the purpose of administrative costs incurred by the Oklahom a Tax
Commission in providing the credits . The Tax Commission shall
determine eligibility for the credits, create calculation and
disbursement methodology of the credits, and may take such actions
as are necessary to implement the p rovisions of this subse ction.
3. The monies received by the State of Oklahoma pursuant to any
settlement with or judgment agai nst any tobacco company or companies
after June 30, 2001, not deposited into the trust fund as provided
in this section or into the revolving fund as au thorized in this
section, shall be deposited into a special fund established by the
Legislature solely f or the purpose of receiving the payments;
provided, the Legislature may, by law, direct a certain portion of
such monies to the Office of the Attorney G eneral. The special fund
shall be subject to legislative appropriations.
C. There is hereby created th e Board of Investors of the
Tobacco Settlement Endow ment Trust Fund. The Board of Investors
shall have the duty of investing monies in the trust fund, subject
to restrictions and limitations provided by law for and in
accordance with laws applicable to th e investment of monies in state
retirement funds.
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The Board of Investors shall consist of five (5) members as
follows:
1. The State Treasurer who shall be the chair;
2. An appointee of the Governor;
3. An appointee of the Speaker of the House of Represe ntatives;
4. An appointee of the President Pro Temp ore of the Senate; and
5. An appointee of the State Auditor and Inspector.
The initial appointees s hall serve staggered terms of office as
provided for by law. Thereafter, appointees shall serve four -year
terms of office. No more than two appointees sha ll be appointed
from any single congressional district. All appointed members shall
have demonstrated expertise in public or private inves tment funds
management.
D. There is hereby created the Board of Directors of the
Tobacco Settlement Endowment Trust Fund. The Board of Directors
shall consist of seven (7) members, one appointed by each of the
following appointing authorities:
1. The Governor;
2. The President Pro Tempore of the Senate;
3. The Speaker of the House of Representatives;
4. The Attorney General;
5. The State Treasurer;
6. The State Auditor and Inspector; and
7. The State Superinte ndent of Public instruction.
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The initial appointed members shall serve staggered terms of
office as provided for by law. Thereafter, the appointed members of
the Board of Directors shall serve seven -year terms of office. At
least one appointee shall be a ppointed from each congressional
district, and not more than two appointees shall be appointed from
any single congressional district. Not more than four a ppointees
shall be members of the same political party. An appointee shall
have been a member of th e political party to which the appointe e
belongs for at least one (1) year prior to the date of appointm ent.
Appointees shall have demonstrated expertise i n public or private
health care or programs related to or for the benefit of children or
senior adults.
The Board of Directors shall meet a t least one time each
calendar quarter.
E. Earnings from the tru st fund, including but not limited to
interest, dividends, and realized capital gains from investments of
the trust fund shall be expended as provided i n subsection F of this
section for the following purposes:
1. Clinical and basic research and treatment efforts in
Oklahoma for the purpose of enhancing ef forts to prevent and combat
cancer and other tobacco -related diseases;
2. Cost-effective tobacco pr evention and cessation programs;
3. Programs other than those specified in paragraph 1 of this
subsection designed to maintain or improve the health of Okl ahomans
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or to enhance the provision of health care services to Oklahomans,
with particular emphasis on such programs for children;
4. Programs and services for the benefit of the children of
Oklahoma, with particular emphasis on common and higher educatio n,
before- and after-school and pre-school programs, substance abuse
prevention and treatment progra ms and other programs and services
designed to improve the health and quality of life of children;
5. Programs designed to enhance the health and well -being of
senior adults; and
6. Authorized administrative expenses of the Office of the
State Treasurer and the Board of Directors.
F. Each fiscal year, the Board of Directors may expend the
amount of earnings which actually accrued to the trust fund during
the preceding fiscal year. Any amount not so expended shall remain
in the trust fund. The Board sha ll direct specific expenditures to
be made for the purposes specified in subsection E of this section.
G. The Legislature may enact laws to further impleme nt the
provisions of this section.
SECTION 2. The Ballot Title for the prop osed Constitutional
amendment as set forth in SECTION 1 of this resolution shall be in
the following form:
BALLOT TITLE
Legislative Referendum No. ____ State Question No. ____
THE GIST OF THE PROPOSITION IS AS FOLLOWS :
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This measure would amend Section 40 of Article 10 of the
Oklahoma Constitution. It would lower the percentage of money
received by the state from to bacco manufacturers that is
deposited in the Tobacco Settlement Endowment Trust Fund from
seventy-five percent (75%) to sixty-three and seventy-five
hundredths percent (63.75%). It would cause fifteen percent
(15%) of money received by the state from toba cco manufacturers
each year to be deposited into a fund created by the
Legislature. The fund would be used to provide tax credits to
Oklahoma residents who file an income tax return for the tax
year, except for inmates in the custody of the Department of
Corrections. The Oklahoma Tax Commission would dete rmine
eligibility and calculate the payment s and would be allowed to
take other necessary action to carry out this measure.
SHALL THE PROPOSAL BE APPROVED?
FOR THE PROPOSAL — YES _____________
AGAINST THE PROPOSAL — NO _____________
SECTION 3. The President Pro Tempore o f the Senate shall,
immediately after the passage of thi s resolution, prepare and file
one copy thereof, including the Ballot Title set forth in SECTION 2
hereof, with the Secretary of State and one copy with the Attorney
General.
58-1-390 DC 1/20/2021 11:01:38 PM