The proposed bill, Substitute Bill No. 6974, amends the disbursement structure of the Tobacco Settlement Fund, effective July 1, 2025. It repeals the existing subsection (c) of section 4-28e and introduces a new framework for annual disbursements. For the fiscal year ending June 30, 2024, the bill mandates that $12 million be allocated to the Tobacco and Health Trust Fund, with the remainder going to the General Fund. However, for the fiscal year ending June 30, 2025, all disbursements will be directed solely to the General Fund.

Starting with the fiscal year ending June 30, 2026, the bill stipulates a significant increase in funding for the Tobacco and Health Trust Fund, raising the allocation to $32 million, with any remaining funds again directed to the General Fund. The changes reflect a shift in funding priorities and aim to enhance support for health initiatives related to tobacco use while also ensuring that the General Fund receives necessary financial resources.