Settlement FAQs

how to apply for texas tobacco settlement

by Prof. Preston Carroll Published 2 years ago Updated 2 years ago
image

A text copy of the settlement agreement is available online or may be requested via e-mail at DSHSTobacco@dshs.texas.gov or telephone at 512.776.2591. What was the total settlement amount, initially, for political subdivisions? The settlement agreement totaled approximately $2.3 billion.

Full Answer

What is the tobacco settlement permanent trust account (TSPA)?

The 76th Texas Legislature created the Tobacco Settlement Permanent Trust Account as a cooperative project between the Texas Department of Health (now DSHS) and the State Comptroller of Public Accounts in order to provide local health departments and hospital districts a portion of the payments from the state's tobacco settlement.

How much does it cost to get a tobacco license in Texas?

Wholesalers who sell cigarettes and tobacco products must obtain a permit for each vehicle used – $15 per annual licensing period. Importers– no fee. Manufacturers with no representation in Texas– no fee. Retailers– $180 for permits issued or renewed. Retailer permits are issued for a two-year period of June 1 through May 31 of even-numbered years.

What forms do I need to start a cigarette business in Texas?

In addition to submitting Form AP-193, Texas Application for Retailer Cigarette, Cigar and/or Tobacco Products Taxes Permit (PDF), a retailer must have an active sales tax permit (Form AP-201, Texas Application (PDF)) for each commercial business location.

Do you need a sales tax permit to sell cigarettes in Texas?

In addition to submitting Form AP-193, Texas Application for Retailer Cigarette, Cigar and/or Tobacco Products Taxes Permit (PDF), a retailer must have an active sales tax permit (Form AP-201, Texas Application (PDF)) for each commercial business location. Permit Fees

image

What are the services that are not counted in the septic system?

Health care education, outreach, screening, laboratory services, counseling, and case management may be counted. However, environmental services such as mosquito control, water testing, and septic tank inspection may not be counted.

Do counties have to include the trust fund?

Counties may only include the expenditures made out of the trust fund. It should not include amounts set aside in the trust fund, but may include expenditures made out of the trust fund if they are used for health care services and the county does not receive reimbursement for those services.

Can a foundation give money to a county?

However, if the foundation gave the money to the county as a general donation, giving the county clear authority to use the money at the county’s discretion, and the county used the money on health care, then the county could count the use of such funds as an unreimbursed health care expenditure.

Can a political subdivision spend the money it receives from the tobacco settlement for any purpose it chooses?

May a political subdivision spend the money it receives from the tobacco settlement for any purpose it chooses?#N#Yes, the use of the money is unrestricted. The settlement agreement does not require that it be spent for a particular purpose.

Is tobacco settlement based on pro rata?

Yes, because all pro rata shares, beginning in 2000, are based on unreimbursed health care expenditures, as defined in the settlement agreement and health care expenditures made with tobacco settlement proceeds are treated as unreimbursed. See #12.

What is a cigar permit holder?

A permit holder who receives cigars and tobacco products for the purpose of making a first sale in this state.

How much does a distributor license cost in Texas?

Distributors who sell cigarettes and tobacco products must obtain a permit for each vehicle used – $15 per annual licensing period.

Is TEXNET undefined the only payment method?

TEXNET External Link: undefined is the only acceptable payment method.

image

General Information

  1. Who is qualified to receive an annual pro rata share of the tobacco settlement proceeds? Political subdivisions as defined in 25 Tex. Admin. Code § 102.1(b). These include “a hospital district, ano...
  2. How can I determine whether a given political subdivision qualifies for tobacco settlement proceeds under this definition? Consult Chapter 61 of the Texas Health and Safety Code pert…
  1. Who is qualified to receive an annual pro rata share of the tobacco settlement proceeds? Political subdivisions as defined in 25 Tex. Admin. Code § 102.1(b). These include “a hospital district, ano...
  2. How can I determine whether a given political subdivision qualifies for tobacco settlement proceeds under this definition? Consult Chapter 61 of the Texas Health and Safety Code pertaining to the C...
  3. How can I get a copy of the settlement agreement? A text copy of the settlement agreement is available online or may be requested via e-mail at DSHSTobacco@dshs.texas.govor telephone at 512.776.2591.
  4. What was the total settlement amount, initially, for political subdivisions? The settlement agr…

Distribution Calculation

  • Once the DSHS receives the expenditure statements, how will it apportion the available dollars among the political subdivisions? The DSHS combines eligible expenditures from all statements received...
See more on dshs.texas.gov

Use of Tobacco Settlement Proceeds

  1. May a political subdivision spend the money it receives from the tobacco settlement for any purpose it chooses? Yes, the use of the money is unrestricted. The settlement agreement does not require...
  2. What are some of the ways in which political subdivisions intend to use the tobacco settlement proceeds? Use of funds varies widely, based on information received by the DSHS.
  1. May a political subdivision spend the money it receives from the tobacco settlement for any purpose it chooses? Yes, the use of the money is unrestricted. The settlement agreement does not require...
  2. What are some of the ways in which political subdivisions intend to use the tobacco settlement proceeds? Use of funds varies widely, based on information received by the DSHS.
  3. Is there any incentive for political subdivisions to spend their tobacco settlement proceeds on health care? Yes, because all pro rata shares, beginning in 2000, are based on unreimbursed health ca...

General Information Regarding Counties

  1. Should counties coordinate with cities to determine how best to maximize funds for reimbursement? Yes, counties should coordinate with cities to maximize all dollars being spent on health care in t...
  2. More specifically, for what kinds of services can a county expect to receive payment under the settlement agreement? These must be for services such as a hospital district may provide. T…
  1. Should counties coordinate with cities to determine how best to maximize funds for reimbursement? Yes, counties should coordinate with cities to maximize all dollars being spent on health care in t...
  2. More specifically, for what kinds of services can a county expect to receive payment under the settlement agreement? These must be for services such as a hospital district may provide. They will ty...
  3. May a county include expendable medical supplies such as bandages, medications, and syringes? Yes, medical supplies may be included, but administrative supplies, such as copy paper, can be counted...
  4. Are expenditures related to medical waste disposal, including the destruction of drugs and n…

County Jail, Sheriff, & Prisoner Information

  1. May a county include the salary and benefits of the nurse in a county jail? Yes, under 25 Tex. Admin. Code § 102.3(b)(1)(J), the county may include employee salary and benefits to the extent the em...
  2. If a county hires a private contractor to provide inmate medical care, would it be considered an eligible expenditure? Yes, the county can claim the contract amount.
  1. May a county include the salary and benefits of the nurse in a county jail? Yes, under 25 Tex. Admin. Code § 102.3(b)(1)(J), the county may include employee salary and benefits to the extent the em...
  2. If a county hires a private contractor to provide inmate medical care, would it be considered an eligible expenditure? Yes, the county can claim the contract amount.
  3. May a county include drug testing for the sheriff’s department personnel? No, the expense must be related to health care for the general public or the inmates of the county jail.
  4. Can the expense of mental competency hearings or mental health commitments in the court system be included as a possible expense? No, court costs and deputy sheriff’s time spent transporting a pris...

Hospital District & County Information

  1. If you have a hospital district that does not cover the entire county, is the hospital district responsible for claiming jail health care? No, the county will file its own report and will include i...
  2. If a county has a hospital district that covers the entire county, which entity will count the unreimbursed health care expenditures for inmates of the county jail – the county or the hos…
  1. If you have a hospital district that does not cover the entire county, is the hospital district responsible for claiming jail health care? No, the county will file its own report and will include i...
  2. If a county has a hospital district that covers the entire county, which entity will count the unreimbursed health care expenditures for inmates of the county jail – the county or the hospital dist...
  3. What expenditures may be claimed by a political subdivision that has sold its public hospital to a private company? Note the following provision in 25 Tex. Admin. Code § 102.3(e)for the distributio...
  4. Who submits an expenditure statement when a new hospital district comes into existence in …

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 1 2 3 4 5 6 7 8 9