Ohio Lawmakers Move to Seize Tobacco Prevention Funds April 9, 2008
News Summary
In a showdown with the state's main tobacco-prevention charity, lawmakers approved legislation to seize most of the assets of the Ohio Tobacco Prevention Foundation, and the measure was swiftly signed by Gov. Ted Strickland.
NBC-4 in Columbus reported April 8 that state Senate and House lawmakers granted Strickland the power to take $230 million from the trust fund of the foundation after the charity's board voted to grant the money to a trio of charities that would fulfill its mission. The foundation's initial maneuver came in response to Strickland's announced plan to strip $230 million from the tobacco-prevention group to pay for an economic stimulus plan.
The legislation was tacked onto a measure allowing the state board of health to contract with plumbing inspectors.
The foundation's all-volunteer board vowed to fight the raid in court. "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," said board member Rob Crane. "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 ...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."
State Treasurer Richard Cordray said he is bound by law to enforce the legislation signed by the governor, liquidate the funds, and remove them from the foundation's control.
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