The state Legislature can't dip into the earnings from a settlement endowment, he says.

OKLAHOMA CITY -- The Legislature can't spend earnings from the Oklahoma Tobacco Settlement Endowment Trust Fund, according to an opinion released Friday by Attorney General Drew Edmondson.

The opinion was requested by Kenneth D. Rowe, chairman of the board of directors of the tobacco trust.

The opinion was requested after legislation last session attempted to spend earnings from the endowment, said Tracey Strader, trust director.

Although the legislation, the All Kids Act, passed, the language impacting the trust was removed, she said.

"This attorney general's opinion wasn't about the bill," Strader said. "It was more about the issue of the authority to direct expenditures of the endowment. Once the language was in the bill, that brought up the issue."

In 2000, voters decided to create the trust fund after the state received a settlement from tobacco companies following a legal battle over health expenses associated with smoking.

The trust fund was to receive a growing percentage of the payments, reaching 75 percent. Monies not going to the fund were put in a special fund established by the Legislature. The endowment has about $382 million, which earns more than $10 million a year, said State Treasurer Scott Meacham.

The state constitution lists how the trust fund earnings can be spent, ranging from tobacco prevention and cessation programs to health care.

"Legislation which would grant the Legislature the power to direct the expenditures from the trust fund or which would allow the Legislature to direct the Board of Directors to spend the earnings from the trust fund for specific programs or purposes would be inconsistent with the Constitution as it would restrict the constitutional power of the Board of Directors," the opinion states.

Barbara Hoberock (405) 528-2465
barbara.hoberock@tulsaworld.com