The Oklahoma Supreme Court put on hold a new state law that critics say threatens the independence of a constitutionally created board overseeing nearly $2 billion in public dollars.
The high court ruled Wednesday that the law that allows the appointing authorities of the Tobacco Settlement Endowment Trust board to remove members at will cannot take effect until further order of the court.
The law was set to take effect Aug. 28, but TSET challenged the constitutionality of House Bill 2783, which also limits governing board members to seven years.
Members currently serve staggered, seven-year terms and oversee the public endowment fund.
Oklahoma voters created TSET, an endowment trust, in 2000 through a constitutional amendment after 46 states sued tobacco companies. The companies paid the states damages for illnesses caused by smoking.
The suit alleges that only a vote of the people can alter the terms board members serve because its creation was put in the Oklahoma Constitution by voters.
Bob Burke, an attorney for TSET, could not immediately be reached for comment.
Over the years, lawmakers have attempted to use the TSET endowment to pay for various initiatives, including Medicaid expansion.
This past session, the panel did not immediately agree to provide $50 million requested by Republican lawmakers to go towards a University of Oklahoma children’s pediatric hospital in Oklahoma City. Lawmakers put $200 million into the project.
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