Ohio Tobacco Prevention Fund (OATF) Legal Challenge Continues

A judge in Franklin County temporarily blocked Treasurer Richard Cordray from transferring $230 million of anti-smoking money meant for use by the Ohio Tobacco Prevention Foundation (OATF) that Gov. Ted Strickland and the General Assembly want to use for a jobs program. OATF is challenging the constitutionality of legislation passed this week and signed by Governor Strickland (SB 192) that would hold OATF’s endowment for use in the jobs package before the OATF was able to transfer the funds into other programs that curtail tobacco use. In dispute is language legislators added to SB 192 that directs the treasurer to liquidate $230 million of the tobacco foundation’s $270 million endowment and place it in a newly created jobs fund. This legislative maneuver occurred after OATF asked the treasurer to liquidate $190 million of the endowment and transfer it to another foundation. 

The judge has ordered the money to remain in the custody of Treasurer Cordray, however, he noted that the funds are not to be “moved, expended, disbursed, re-appropriated and/or transferred” until further order of the court. A preliminary injunction hearing is set for April 24th.