Gov. Strips Funds From Tobacco Prevention Foundation

Source from:  Tuesday, Apr 08, 2008 - By Denise Yost COLUMBUS, Ohio 04/09/2008

It was a race to the state treasurer's office as the Governor tried to dismantle the Ohio Tobacco Prevention Foundation and strip it of its funds. The foundation pulled some legal maneuvers of its own to keep the money and prevent the state from "using the fund as an ATM." Gov. Ted Strickland wants to take $230 million from the fund and use it for part of his $1.5 billion job stimulus plan. But before the governor could get to the money, the foundation voted on Friday to entrust $190 million of it to other smoking prevention groups. Then, lawmakers passed a bill on Tuesday that gives the governor the power to take the money, NBC 4's Tom Brockman reported. Lawmakers passed the legislation that was originally just to allow the county's board of health to enter into contracts for inspecting plumbing in county buildings. But one amendment has made the bill much more controversial. The amendment made to Senate Bill 192 in the house essentially strips the Ohio Tobacco Prevention Foundation of $230 million -- the same amount that would be directed to the Governor's job stimulus plan. The foundation is left with $40 million to be used for agreements and obligations the foundation already entered into. The state House of Representatives passed the measure on Tuesday morning. From there, it went to the state Senate where, again, it passed. At 3 p.m., Gov. Strickland signed the bill into law. The foundation is now seeking legal advice -- but is apparently not willing to give up the fight to use the money for what members say is its intended purpose. The foundation is an all-volunteer, 19-member board that the Governor established to use money from that giant tobacco industry lawsuit settlement to keep kids from smoking and help adults stop. It fights against tobacco, but NBC 4's Colleen Marshall talked to board members who said they are ready for another kind of fight. "This endowment was set up outside state government for just this reason and, clearly, to reach into it is illegal and unconstitutional and I think immoral as well. But, it's going to cost millions of dollars and years of legal effort to unravel this if the governor tries to go after money," said Dr. Rob Crane. Crane said there are other targets. "The Governor's office has threatened the charities, the attorney general's office has threatened us with personal liability and now, today, the legislature has threatened our kids. I think we'll stand firm," he said. The unpaid board members face tens of millions of dollars in potential personal liability if the attorney general follows through on his threats. But, Crane said the board met late Monday night in executive session and is united in its commitment to fight against tobacco -- and now its fight against big government. "We're going to ask the Governor not to use us as an ATM, but more than that, Gov. Strickland, we ask that you protect the health of our kids and protect their moral future as well," Crane said. NBC 4 was told state Treasurer Richard Cordray is aware of the legal fight brewing, but a statement from his office claims he must follow the law enacted on Tuesday -- and that means steps will be taken to immediately liquidate the funds and take them out of the control of the foundation. Stay with NBC 4 and refresh nbc4i.com for additional information. Enditem