Proposition 99 (November 1988), the Tobacco Tax and Health Protection Act, established a new surtax on cigarettes and tobacco products, thereby generating about $1.5 billion in new revenues for expenditure in 1989-90 and 1990-91. Assembly Bill 75 (Ch 1331/89, Isenberg) allocated the vast majority of these funds. Our review suggests that the major departments responsible for the implementation of AB 75 have generally made reasonable progress in the past two years in implementing the health services and health education programs the act established, although some programs are still experiencing delays in payments or are underutilizing the funds that are available. Our review also indicates that there is currently little data available with which to evaluate the effectiveness of programs.