Nevada County Picayune and Gurdon Times Newspaper Archive

Lawmakers Fail To Disburse Tobacco Monies

The Arkansas General Assembly adjourned its special legislative session after failing to reach a compromise on a plan to manage and distribute the state's $1.6 billion share of a national tobacco settlement.

The House on Thursday had approved an amendment to a bill previously approved in the Senate. However, the Senate declined to concur with those amendments. That prompted a rare conference meeting Friday morning between select members of both bodies in an effort to reach a compromise. The conference failed and both houses adjourned.

In other business during a five-day session, the House approved legislation to completely ban smoking in the state Capitol. A 1997 law had restricted smoking in the Capitol only to certain areas. Last week's bill disallows smoking entirely and now goes to the governor. It will become law upon his signature and will take effect immediately. Rep. Stephen Simon presented that bill in the House.

The House had approved two different plans on how best to allocate the $1.6 billion that the state is schedule to receive over the next 25 years.

One proposal, sponsored by Rep. Jim Hendren of Sulphur Springs, called for putting the annual settlement payments  about $62 million each year  into a trust fund. Only interest earnings could be spent for about the first 10 years on health programs, allowing the principle to grow considerably.

The principal was touted as a way to prepare for health expenses that will be needed by the state within the next two decades when the Baby Boomer generation reaches retirement age. The Senate never voted on that proposal.

The other plan approved by the House consisted of amendments to a bill approved earlier in the Senate. The amended bill scrapped plans to use up to $5 million in tobacco payments to pay for bonds that would be issued to construct three new research facilities at public universities.

The amended bill also put additional money into the expansion of Medicaid and provided money for the Meals on Wheels program, prescription drugs, grants for local hospitals and grants for communities that develop wellness-initiated projects. The Senate rejected those amendments, preferring instead a plan devised by academic and medical professionals.

Information service of the

Arkansas House of Representatives