Measures to protect Colorado's share of tobacco settlement money, create a fund to finance several new programs and establish the governor's third-grade reading program won House approval Monday. One of the proposals, House Bill 1454, would protect Colora

The state would take a single reduced "present value" payment, amounting to about a third of the $2.9 billion, by selling the stream of future payments to investors - excluding the tobacco industry. Under Senate Bills 71 and 124, the proceeds would be placed in a trust fund and used to pay for Gov. Bill Owens' Read-to-Achieve program for elementary school children and programs geared to children's health, visiting nurses, tobacco research and education, and veterans programs. Treasurer Mike Coffman has been pushing for the lump-sum payment idea as a hedge against the risk of falling tobacco sales and mounting lawsuits, which could leave the tobacco industry vulnerable and put the settlement agreement at risk. Colorado was among 46 states involved in a $206 billion settlement with big tobacco companies in 1998. Colorado's share - ranging from about $32 million to $117 million - are to be paid annually for 25 years. The settlement amount is contingent on cigarette sales, which had fallen between 1997 and 1999 before increasing slightly in the first quarter of this year. Coffman announced recently that the reduced tobacco sales of the last two years will result in Colorado receiving $9 million less than the $87 million it originally was scheduled to receive this year. Because the state has committed to funding new programs, like the governor's elementary reading program, Majority Leader Doug Dean, a Colorado Springs Republican, who sponsored HB 1454, said Colorado needs to be able to depend on a steady stream of money to fund them. Dean said taking the lump-sum payment would secure the money and keep the state from being an unwitting partner with the tobacco industry in hoping to boost cigarette sales. By depending on annual payments to fund new programs, Dean said, the Legislature must expect, or hope, domestic tobacco sales remain strong. "This is good public policy," Dean said. "The state shouldn't be a partner with the tobacco industry. The Senate bills go next to the governor's desk. HB 1454 still must undergo final consideration today before advancing to the Senate.

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