Oklahoma Constitution; Tobacco Settlement Endowment Trust; eliminating the Board of Directors; Board of Investors; annual distribution of earnings; ballot title; filing.
What changed between versions
The bill was entirely replaced. The introduced version was a 'State and Federal Governance Resolution of 2026' relating to state and federal relations. The engrossed version is a constitutional amendment to Section 40 of Article X governing the Tobacco Settlement Endowment Trust Fund.
The trust fund principal can now include real property assets, stock, and other equity investments in addition to monies received from tobacco settlements.
The minimum percentage of future tobacco settlement proceeds deposited into the trust fund is reduced from 75% to 37.5%. The remaining 37.5% goes to a new 'TSET Legacy Effort Revolving Fund' and 25% to a special legislative fund.
A new mandatory distribution formula requires: 20% of annual earnings retained as trust principal, then the amount estimated by the State Regents to fully fund the Oklahoma Higher Learning Access Act (Oklahoma's Promise Scholarships), and all remaining earnings to the Education Reform Revolving Fund (1017 Fund).
The Board of Directors' authority to direct specific expenditures of trust earnings for health research, tobacco prevention, children's programs, and senior adult programs is eliminated. In its place, the Board of Investors must distribute earnings in a fixed priority order.
A special election is ordered for August 25, 2026, to submit the proposed constitutional amendment to voters.
