HJR 1077: Constitutional amendment; Tobacco Settlement Endowment Trust Fund; creating the For Oklahoma’s Future Trust Fund; purpose; providing fund principal; requiring the Board of Investors of the Tobacco Settlement Endowment Trust Fund to invest monies in Fund; ballot title; ordering special election on certain date; filing. - Oklahoma

Floor (House) → Floor (Senate) · 5 edits

MODERATE

The bill was converted from a House version to a Senate version, introducing significant substantive changes to the Tobacco Settlement Endowment Trust. Key modifications include renaming the fund to the 'For Oklahoma's Future Trust Fund,' increasing the required deposit percentage of tobacco payments to a minimum of 75%, and replacing the Board of Directors with a new Board of Investors to manage the assets. The new structure also establishes a separate special fund for undeposited payments and alters the composition and expertise requirements for the governing board.

Scope change

The bill's scope expanded to include the creation of a new 'For Oklahoma's Future Trust Fund' alongside the existing Tobacco Settlement Endowment Trust Fund, while the applicability of the governing board was significantly altered by removing the Board of Directors and establishing a new Board of Investors with different appointment criteria.

DEFINITION

The primary fund name was changed from 'Tobacco Settlement Endowment Trust Fund' to 'For Oklahoma's Future Trust Fund', and a new special fund was created for payments not deposited into the main trust.

FISCAL

The minimum percentage of tobacco settlement payments required to be deposited into the trust was increased to 75% for all fiscal years after June 30, 2001.

REQUIREMENT

The 'Board of Directors' was eliminated and replaced with a 'Board of Investors' to manage investments, with stricter requirements that members must have expertise in health care or programs benefiting children and senior adults.

ENFORCEMENT

The composition of the governing board was changed from seven members appointed by various officials to five members appointed by the State Treasurer, Governor, Speaker, Senate President Pro Tempore, and State Auditor.

TIMELINE

The timeline for the initial staggered terms of the new Board of Investors was established, with subsequent terms set at four years.

HJR1077 (5-14-26) (PAXTON) FS FA1.PDF → Floor (House) · 4 edits

MODERATE

The bill was completely rewritten to shift from a Medicaid expansion measure to a Tobacco Settlement Endowment Trust reform. The original text proposed expanding Medicaid coverage for low-income adults and repealing Medicaid expansion rules if federal funding dropped below 90%. The new version eliminates all Medicaid provisions and instead creates a trust fund to manage tobacco settlement money, establishing new investment boards and distribution schedules.

Scope change

The bill's scope changed entirely from healthcare policy (Medicaid expansion and eligibility) to financial management of tobacco settlement funds.

SCOPE

All provisions related to Medicaid expansion, including eligibility for low-income adults and restrictions on federal funding thresholds, were removed.

FISCAL

New provisions establish a 'Tobacco Settlement Endowment Trust Fund' to receive and manage tobacco settlement monies.

REQUIREMENT

New requirements create a 'Board of Investors' and a 'Board of Directors' to manage the trust fund, with specific appointment rules and term lengths.

TIMELINE

The legislative referendum and ballot title were changed to reflect the new tobacco trust fund instead of the Medicaid expansion amendment.

HJR1077 (5-14-26) (PAXTON) FA2.PDF → HJR1077 (5-14-26) (PAXTON) FS FA1.PDF · 5 edits

MODERATE

The document was converted from a draft floor amendment to a finalized floor substitute, incorporating specific text changes to clarify eligibility and funding triggers. The bill now explicitly requires the state to provide Medicaid coverage to low-income adults at facilities receiving 100% federal funding and removes previous restrictions on imposing eligibility requirements. It also establishes a contingency where the entire Medicaid expansion section of the state constitution and related statutes will be repealed if federal funding drops below 90%.

Scope change

The bill's scope was expanded to explicitly include low-income adults receiving care at facilities with 100% federal matching funds, and it removed prior limitations on the state's ability to set eligibility rules.

ELIGIBILITY

Clarified that the state must provide Medicaid coverage to low-income adults who receive care at health care facilities where the state receives 100% federal funding.

REQUIREMENT

Removed the word 'if' and inserted 'when' in several sections to clarify that the state must act immediately upon certification by the Attorney General regarding federal funding status.

Changed the phrasing regarding federal funding reduction from 'is reduced' to 'has been reduced' to ensure the repeal of the constitutional expansion provisions only occurs after the reduction is confirmed.

Added a new provision stating that no greater eligibility burdens or restrictions can be imposed on persons eligible under this new article than on any other population eligible for Medicaid.

DEFINITION

Added a formal definition for 'Low-income adults' specifying age limits (18-65) and income thresholds (133% of federal poverty level).

HJR1077 (5-14-26) (HICKS) FA3.PDF → HJR1077 (5-14-26) (PAXTON) FA2.PDF · 4 edits

MODERATE

The amendment replaces the original proposal to add a sunset clause with a new set of six specific edits to the bill text. These edits change conditional language from 'if' to 'when' and adjust verb tenses to ensure the bill triggers automatically upon certification by the Attorney General, rather than requiring a future legislative vote to repeal.

Scope change

The bill's scope regarding the repeal of expansion is modified to be automatic and immediate upon certification, removing the previous requirement for a future simple majority vote to repeal.

REQUIREMENT

Changed the trigger for the bill's provisions from a conditional 'if' statement to an automatic 'when' event, ensuring actions occur immediately upon certification by the Attorney General.

Corrected verb tenses from 'is' to 'has been' to align the timing of the certification with the reduction of the tax rate.

Deleted the original proposal to allow future legislatures to repeal the expansion via a simple majority vote.

TECHNICAL

Changed the sponsor of the floor amendment from Senator Hicks to Senator Paxton.

Senate Committee Substitute for House Bill → HJR1077 (5-14-26) (HICKS) FA3.PDF · 2 edits

MINOR

The document was reformatted to include Senate chamber disposition headers and a specific floor amendment request. The amendment proposes adding a clause allowing future legislatures to repeal the bill's expansion provisions with a simple majority vote, thereby reducing the difficulty of reversing the new funding rules later.

Scope change

The bill's scope regarding future amendments is modified to allow easier repeal of expansion clauses.

REQUIREMENT

Added a requirement that future legislatures can repeal the bill's expansion provisions using only a simple majority vote.

TECHNICAL

Replaced the original bill text with Senate disposition headers and floor amendment metadata.

House Committee Substitute → Senate Committee Substitute for House Bill · 5 edits

MODERATE

The bill was updated from a House Committee Substitute to a Senate Committee Substitute, incorporating changes to the bill's title and adding a new trust fund called the 'For Oklahoma's Future Trust Fund' alongside the existing Tobacco Settlement Endowment Trust. The Senate version also modified the composition and duties of the governing boards, removing the Board of Directors entirely while retaining the Board of Investors, and adjusted the investment and distribution rules for the funds.

Scope change

The bill now explicitly creates a second trust fund ('For Oklahoma's Future Trust Fund') and alters the governance structure by eliminating the Board of Directors, which previously oversaw the Tobacco Settlement Endowment Trust.

TECHNICAL

The document header was updated to include 'ENGROSSED' and added the names of additional Senators (Kane, Hill, Moore, Sterling, Manger, and Pae) to the list of sponsors.

SCOPE

A new 'For Oklahoma's Future Trust Fund' was created, expanding the bill's scope beyond just the Tobacco Settlement Endowment Trust.

REQUIREMENT

The 'Board of Directors' was completely eliminated from the bill, removing its seven-member composition, appointment rules, and meeting requirements.

The duties of the 'Board of Investors' were changed to focus solely on investing monies into the new 'For Oklahoma's Future Trust Fund', rather than managing the Tobacco Settlement Endowment Trust as previously described.

DEFINITION

The text describing the purpose of the trust funds was updated to reflect the new dual-trust structure and the specific investment procedures for the 'For Oklahoma's Future Trust Fund'.

Proposed Committee Substitute (full committee) 2 → House Committee Substitute · 5 edits

MODERATE

The bill was amended to remove the 'Proposed' status and update the committee designation. The most significant substantive change is the restructuring of the Tobacco Settlement Endowment Trust, which now eliminates the Board of Directors and replaces it with a smaller Board of Investors. Additionally, the distribution of earnings was expanded to include specific health and education programs, such as cancer research, tobacco cessation, and children's services.

Scope change

The bill's scope was narrowed by eliminating the Board of Directors, which previously oversaw the trust, and replacing it with a smaller Board of Investors. The scope of fund usage was broadened to explicitly include cancer research and specific children's programs.

REQUIREMENT

The Board of Directors was eliminated and replaced with a new Board of Investors consisting of five members, including the State Treasurer as chair.

The requirements for appointees were updated to require demonstrated expertise in public or private investment fund management rather than health care or children's programs.

FISCAL

New specific purposes for distributing earnings were added, including clinical research for cancer and tobacco-related diseases, cost-effective cessation programs, and services for children and senior adults.

DEFINITION

The title of the trust fund was slightly modified from 'Tobacco Settlement Endowment Trust' to 'Tobacco Settlement Endowment Trust Fund'.

TECHNICAL

The document was updated from 'Proposed Committee Substitute' to 'Committee Substitute' and the page numbering was adjusted.

Proposed Committee Substitute (full committee) 1 → Proposed Committee Substitute (full committee) 2 · 2 edits

MINOR

The bill was amended to clarify that the Tobacco Settlement Endowment Trust Fund's principal includes monies directed by this Constitution, not just the Legislature. Additionally, the distribution of earnings was updated to explicitly include the Trust itself as a beneficiary alongside existing programs.

Scope change

The scope of the trust fund's definition was broadened to include constitutional directives, and the scope of earnings distribution was expanded to include the Trust Fund as a recipient.

DEFINITION

Added 'or this Constitution' to the list of authorities that can direct monies into the trust fund's principal.

FISCAL

Changed the earnings distribution language to explicitly state that earnings are distributed to the benefit of the Trust, in addition to the Higher Learning Access Act and the Education Reform Revolving Fund.

Engrossed → Proposed Committee Substitute (full committee) 1 · 3 edits

MINOR

The bill was converted from a draft version to a formal committee substitute, updating the header information and standardizing the text for the official ballot. The core policy content regarding the Tobacco Settlement Endowment Trust remains substantively identical, with no changes to funding amounts, distribution schedules, or board structures.

Scope change

The scope of the bill remains unchanged; it still directs the Secretary of State to place a constitutional amendment on the ballot regarding the Tobacco Settlement Endowment Trust.

TECHNICAL

Updated document headers to reflect the 'Proposed Committee Substitute' status, including new dates and committee signatures.

Standardized the ballot title text to ensure consistency with legislative formatting requirements.

Corrected minor formatting inconsistencies in the text of the proposed constitutional amendment, such as line breaks and spacing, without altering the legal meaning.

Introduced → Engrossed · 6 edits · Mar 25, 2026

MODERATE

The bill was significantly rewritten to replace a generic 'Funding the Future' proposal with a specific 'Tobacco Settlement Endowment Trust Fund.' The new version details how tobacco settlement money must be split between a legacy revolving fund and a special fund, establishes a new Board of Investors to manage the money, and creates a Board of Directors focused on health and education. It also outlines a specific schedule for distributing earnings to cancer research, prevention programs, and education funds.

Scope change

The bill's scope shifted from creating a generic resolution to establishing a specific trust fund with defined investment rules, new governing boards, and mandatory distribution schedules for health and education purposes.

FISCAL

Added a specific schedule requiring 50-75% of tobacco settlement payments to be deposited into the trust fund, increasing over time.

Added a rule that all subsequent tobacco settlement payments must be split between a 'TSET Legacy Effort Revolving Fund' and a special fund for the Attorney General.

REQUIREMENT

Created a new 'Board of Investors' consisting of five members (including the State Treasurer) to manage investments.

Created a new 'Board of Directors' consisting of seven members focused on health care and education expertise to oversee the fund.

DEFINITION

Defined the fund's name as the 'Tobacco Settlement Endowment Trust Fund' and specified its purpose is to combat tobacco-related diseases and fund education.

SCOPE

Changed the proposed constitutional amendment from adding a new section to Article X to modifying Section 40 of Article X.

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