Legislators in North Carolina are considering a proposal to establish a foundation with a portion of the proceeds from the tobacco settlement with cigarette companies, the News & Observer of Raleigh (N.C.) reports.

The state Senate has given its tentative approval to a bill that would earmark $2.3 billion during the next 25 years for a new foundation, the newspaper reports. The amount is half of the $4.6 billion North Carolina is to receive from the settlement.

Under the proposal, the foundation would work to support economic development efforts in tobacco-growing areas of the state.

The state would receive annual payments in the range of $160 million to $190 million, with half going to the foundation and half to the legislature's fund, under the proposal.

The foundation would have 15 trustees. The House speaker and the Senate president pro tem would each appoint five members. The governor would appoint the other five members and select the chairman. The foundation directors would be appointed to four-year terms.

Full text of the article is currently found at:
http://www.news-observer.com/daily/1999/02/04/
nc00.html