MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Finance

By: Senator(s) Rayborn

AN ACT TO CREATE A TRUST FUND IN THE STATE TREASURY DESIGNATED AS THE "TOBACCO LITIGATION SETTLEMENT TRUST FUND" INTO WHICH SHALL BE DEPOSITED SUCH MONEY AS MAY BE RECEIVED BY THE STATE OF MISSISSIPPI AS SETTLEMENT OF ANY LITIGATION IN WHICH THE STATE OF MISSISSIPPI IS A PLAINTIFF OR CLAIMANT FOR DAMAGES SUFFERED BY THE STATE AS A RESULT OF THE USE OF TOBACCO PRODUCTS BY RESIDENTS OF THE STATE; TO PROVIDE THAT INTEREST AND INCOME DERIVED FROM INVESTMENT OF THE PRINCIPAL OF THE TRUST FUND SHALL BE UTILIZED TO MAKE UP FOR ANY SALES TAX REVENUE LOST AS A RESULT OF ANY REDUCTION IN THE SALES TAX ON UNPREPARED FOOD SOLD FOR HUMAN CONSUMPTION; AND FOR RELATED PURPOSES.

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

SECTION 1. There is hereby created in the State Treasury a trust fund designated as the "Tobacco Litigation Settlement Trust Fund" into which shall be deposited such money as may be received by the state as settlement of any litigation in which the State of Mississippi is a plaintiff or claimant for damages suffered by the state as a result of the use of tobacco or tobacco products by the residents of the State of Mississippi. The principal of the trust fund shall remain inviolate and shall be invested as provided by law. Interest and income derived from investment of the principal of the trust fund shall be utilized to make up for any sales tax revenue lost as a result of any reduction in the sales tax on unprepared food sold for human consumption. The amount necessary to fund any such reduction shall be transferred by the State Treasurer to the General Fund in the amount estimated by the State Tax Commission as necessary.

SECTION 2. This act shall take effect and be in force from and after July 1, 1999.