ARIZONA STATE SENATE
Phoenix, Arizona
tobacco tax programs; audit
(NOW; health education
account; audit)
Requires the Office of the Auditor General (OAG) to evaluate tobacco use prevention and reduction programs in the Department of Health Services (DHS). Transfers, beginning on January 1, 2004, the responsibility of conducting evaluations of certain medically needy account programs from DHS to the OAG.
In 1994, Arizona voters increased the state’s tax on tobacco products by forty cents. Twenty-three percent of the revenues collected as a result of the increased tax are deposited in the health education account for programs designed to prevent and reduce tobacco use. DHS is authorized to use monies in this account to defray the costs of developing and delivering education programs, including radio, television and print media costs. DHS is also authorized to contract with county health departments, community health centers, Indian tribes, nonprofit organizations and schools for education programs relating to tobacco use prevention and reduction.
In a September 1999 performance audit of the tobacco education and prevention program, the OAG found evaluation efforts since the program’s inception have yielded inconclusive results; however, the report indicated the program was working on several evaluations that may provide more useful information. Other findings regarding the program included: (1) the program expended approximately $900,000 before discontinuing a process evaluation that did not achieve its goals; (2) the program still lacked a baseline on the prevalence of youth smoking; and (3) the cost-effectiveness study provided very limited information.
The OAG recommended the program develop an evaluation strategy, including a comprehensive evaluation plan that corresponds to the program goals. Other recommendations suggested the program improve its communication with local projects and attempt to obtain tobacco-related information from other entities. Lastly, with respect to assessments, the OAG recommended the program to continue to coordinate surveys with other entities. Since that time, the program has implemented evaluations on three separate levels – on the local community by local health departments; on training and curriculum development by Arizona State University; and on the media program by the University of Arizona. In addition, baseline studies on the prevalence of smoking in adults and youths were recently complete.
S.B. 1313 requires the OAG to evaluate the tobacco use prevention and reduction programs, and to report its findings biennially.
According to JLBC, the total funds available in the health education account is $56.2 million in FY 2001-2002 and $48.1 million in FY 2002-2003. The budget recommendation for the tobacco education and prevention program is $34 million in both years of the biennium.
In her veto message, the Governor said she eliminated the transfer of monies from the health research account to the OAG to perform the health education account evaluations because "this level of annual commitment seems excessive."
Medically Needy Account
In addition, statute requires DHS to conduct annual program evaluations of programs that receive medically needy account monies. The program evaluations are to examine the effectiveness and efficacy of each program, and include specific information such as the level and scope of services being offered, the types of services being used, the frequency of services being used, the personal demographic characteristics of the program participants, program revenue and expenditure information and information on program contractors and service providers. S.B. 1313 transfers, from DHS to the OAG, the responsibility of conducting the annual evaluations of medically needy account programs that are administered by DHS. Statute currently authorizes the transfer of monies from the medically needy account to DHS necessary to conduct the annual program evaluations. This legislation specially transfers $300,000 annually to the OAG to conduct the evaluations.
1. Requires the OAG to evaluate tobacco use prevention and reduction programs funded by the health education account, and to submit a report of its findings biennially to the Governor and Legislature.
2. Requires the OAG to submit the first report by November 15, 2004. Requires the first report to include data beginning in FY 2001-2002.
3. Appropriates $380,000 in FY 2001-2002 from the health education account to the OAG to conduct the evaluations.
Medically Needy Account
4. Transfers from DHS to OAG, beginning January 1, 2004, the responsibility of conducting annual program evaluations of medically needy account programs that are administered by DHS.
5. Requires the OAG to establish a schedule for the periodic review of these programs.
6. Requires the Joint Legislative Audit Committee to review the schedule and approve or modify it.
7. Transfers $300,000 annually from the medically needy account to the OAG to conduct the evaluations.
8. Requires DHS to provide data to the OAG to conduct the evaluations.
9. Provides for a general effective date.
Amendments
Adopted by Committee
1. Adopted the strike-everything amendment.
Amendments
Adopted by the House of Representatives
1. Transfers the medically needy account program evaluations from DHS to the OAG.
2. Transfers monies from the medically needy account to the OAG to conduct the evaluation.
Items Vetoed by
the Governor
Eliminates the requirement of DHS to transfer monies to the OAG from the health education account to conduct Health Education Account evaluations.
Senate Action House Action
HEA 2/20/01 DPA 7-0-1 HEA 3/19/01 DP 7-0-0-3
3rd Read 3/5/01 27-7-1 APPROP 4/18/01 DPA 13-0-0-3
Final Read 5/1/01 29-0-1 3rd Read 4/25/01 54-4-2
Signed by Governor 5/4/01
Chapter 313
Prepared by Senate Staff
May 21, 2001