093_SB0102

 
                                     LRB093 04545 SJM 04598 b

 1        AN ACT in relation to tobacco product manufacturers.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The State Finance Act is amended by changing
 5    Section 6z-43 as follows:

 6        (30 ILCS 105/6z-43)
 7        Sec. 6z-43. Tobacco Settlement Recovery Fund.
 8        (a)  There is created in the  State  Treasury  a  special
 9    fund  to  be  known  as the Tobacco Settlement Recovery Fund,
10    into which shall be deposited all monies paid  to  the  State
11    pursuant  to  (1)  the Master Settlement Agreement entered in
12    the case of People of the State of Illinois v. Philip Morris,
13    et al. (Circuit Court of Cook County, No. 96-L13146) and  (2)
14    any  settlement  with or judgment against any tobacco product
15    manufacturer other  than  one  participating  in  the  Master
16    Settlement Agreement in satisfaction of any released claim as
17    defined  in  the  Master Settlement Agreement, as well as any
18    other monies as  provided  by  law.   All  earnings  on  Fund
19    investments  shall  be  deposited  into  the  Fund.  Upon the
20    creation of the Fund, the State Comptroller shall  order  the
21    State  Treasurer to transfer into the Fund any monies paid to
22    the State as described in item (1) or  (2)  of  this  Section
23    before  the  creation of the Fund plus any interest earned on
24    the investment of those monies.  The Treasurer may invest the
25    moneys in the Fund in the same manner, in the same  types  of
26    investments,  and subject to the same limitations provided in
27    the Illinois Pension Code for the investment of pension funds
28    other than those established under Article  3  or  4  of  the
29    Code.
30        (b)  As  soon  as  may  be practical after June 30, 2001,
31    upon notification from and at the direction of the  Governor,
 
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 1    the  State  Comptroller  shall direct and the State Treasurer
 2    shall  transfer  the  unencumbered  balance  in  the  Tobacco
 3    Settlement Recovery Fund as of June 30, 2001,  as  determined
 4    by  the  Governor,  into  the Budget Stabilization Fund.  The
 5    Treasurer may invest the moneys in the  Budget  Stabilization
 6    Fund  in  the  same manner, in the same types of investments,
 7    and subject to the same limitations provided in the  Illinois
 8    Pension  Code  for the investment of pension funds other than
 9    those established under Article 3 or 4 of the Code.
10        (c)  In addition to any other deposits authorized by law,
11    after any delivery of any bonds as authorized by Section  7.5
12    of  the  General  Obligation  Bond  Act  for  deposits to the
13    General  Revenue  Fund  and  the  Budget  Stabilization  Fund
14    (referred to as "tobacco  securitization  general  obligation
15    bonds"),  the  Governor  shall certify, on or before June 30,
16    2003 and June 30  of  each  year  thereafter,  to  the  State
17    Comptroller and State Treasurer the total amount of principal
18    of,  interest  on, and premium, if any, due on those bonds in
19    the next fiscal year beginning with  amounts  due  in  fiscal
20    year  2004.  As soon as practical after the annual payment of
21    tobacco settlement moneys to the Tobacco Settlement  Recovery
22    Fund  as  described  in item (1) of subsection (a), the State
23    Treasurer and  State  Comptroller  shall  transfer  from  the
24    Tobacco  Settlement  Recovery  Fund to the General Obligation
25    Bond Retirement and Interest Fund the amount certified by the
26    Governor, plus any cumulative deficiency in  those  transfers
27    for prior years.
28        (d)   (c)  All  federal  financial  participation  moneys
29    received pursuant to expenditures  from  the  Fund  shall  be
30    deposited into the Fund.
31        (e)  In  any  civil  litigation under any legal theory in
32    which  a  judgment  is  entered  against  a  signatory  or  a
33    successor to a signatory of the Master Settlement  Agreement,
34    as   defined   in   Section   10   of   the  Tobacco  Product
 
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 1    Manufacturers' Escrow Act, the appeal bond that the signatory
 2    or successor or any other defendant may be required  to  post
 3    to  stay  execution  on  the judgment during the time that an
 4    appeal or discretionary review of  the  judgment  is  pending
 5    shall  be set in accordance with the law and the rules of the
 6    court, except that in no case may the  total  amount  of  the
 7    appeal  bond  exceed  $25,000,000,  regardless  of  the total
 8    amount of the judgment.
 9        (f)  If it is proved by a preponderance of  the  evidence
10    that  an  appellant  for whom an appeal bond has been limited
11    under  subsection  (e)  is   intentionally   dissipating   or
12    diverting  assets outside the ordinary course of its business
13    for the purpose of avoiding  payment  of  the  judgment,  the
14    court  shall  enter  any orders that are necessary to prevent
15    the dissipation or diversion of assets.
16        (g)  The changes made by this amendatory Act of the  93rd
17    General  Assembly apply to any action pending on or after the
18    effective date of this amendatory Act  of  the  93rd  General
19    Assembly.
20    (Source:  P.A.  91-646,  eff.  11-19-99; 91-704, eff. 7-1-00;
21    91-797,  eff.  6-9-00;  92-11,  eff.  6-11-01;  92-16,   eff.
22    6-28-01;  92-596, eff. 6-28-02; 92-597, eff. 6-28-02; revised
23    9-3-02.)

24        Section 99.  Effective date.  This Act takes effect  upon
25    becoming law.