The proposed bill, Substitute Bill No. 5164, amends the disbursement structure of the Tobacco Settlement Fund. It repeals the existing subsection (c) of section 4-28e and introduces new provisions effective July 1, 2026. Under the new law, annual disbursements from the Tobacco Settlement Fund will be allocated as follows: for the fiscal year ending June 30, 2023, until June 30, 2025, $12 million will be directed to the Tobacco and Health Trust Fund, with the remainder going to the General Fund. However, for the fiscal year ending June 30, 2026, all disbursements will be made solely to the General Fund.

Starting with the fiscal year ending June 30, 2027, the bill increases the allocation to the Tobacco and Health Trust Fund to $32 million, with the remaining funds again directed to the General Fund. The bill effectively modifies the previous disbursement schedule by eliminating the previous fiscal year allocations and establishing a new funding structure that emphasizes increased support for the Tobacco and Health Trust Fund in the future.