Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Louise F. Rogers, Chief, San Mateo County Health
Gina Wilson, Chief Financial Officer, San Mateo County Health
Subject: Tobacco Settlement Change of Authorized Officers
RECOMMENDATION:
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Adopt a resolution substituting the officers authorized to direct transfer of tobacco settlement funds.
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BACKGROUND:
In 1998, the State of California, in partnership with other states, filed litigation against major U.S. tobacco companies. The suit successfully alleged years of deceitful advertising and marketing of tobacco products to adults and children. The lawsuit resulted in major changes to the way these products are advertised, as well as a Master Settlement Agreement (MSA) in which the tobacco companies agreed to pay billions of dollars annually to the states.
Since the MSA went into effect, San Mateo County has received approximately $6 to $7 million dollars annually from this source. These funds are used by San Mateo County Health (Health) for indigent healthcare costs, tobacco prevention activities, and facility expenses that further Health's mission to help everyone in San Mateo County live longer and better lives.
Starting in 2017, to improve the efficiency of cash handling and internal controls, the County Treasurer's Office established individual account structures within Union Bank for the various departments within the County. As a result, the MSA funds will no longer be deposited into the County's main banking account, but instead will be deposited in an account designated to San Mateo County Health.
DISCUSSION:
Given the foregoing, the Tobacco Settlement funds that are currently being received within the main bank account for the County should be redirected to an account associated with Health.
To make this account change, the Attorney General's Office is requesting a resolution from the County to update the individuals...
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