SB 1191 Creates MO Tobacco Settlement Auth. which may issue bonds to be repaid w/net tobacco settlement agreement recoveries
LR Number:4827L.10T Fiscal Note:4827-10
Committee:Pensions and General Laws
Last Action:06/07/02 - Signed by Governor (w/EC) Journal page:
Title:HS HCS SS#2 SB 1191
Effective Date:Emergency Clause
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Current Bill Summary

HCS/SS#2/SB 1191 - This act is entitled the "Missouri Tobacco Settlement Authority Act". The purpose of the authority is to enter into sales agreements with the state whereby the state sells a portion of its share of tobacco settlement proceeds.

The powers of the authority are vested in a board consisting of the Governor, Lieutenant Governor, and the Attorney General. The President Pro Tem of the Senate, the Speaker of the House of Representatives and the Treasurer shall serve as an ex officio members of the authority. The Office of Administration shall provide staffing for the authority. The Governor shall be authorized to sell or assign to the authority up to thirty percent of the state's share of tobacco settlement proceeds.

Proceeds from bonds issued by the authority shall be deposited in the tobacco securitization settlement trust fund. Moneys in the fund shall be used solely for the payment of all amounts due the state. Within the fund is a "qualified tax- exempt expenditure account" and a "taxable expenditure account". Net proceeds from tax-exempt bonds shall be deposited in the former account and used to reimburse the state. Net proceeds from taxable bonds shall be deposited in the latter account and transferred to the state treasurer for deposit in the general revenue fund.

Those amounts deposited in the general revenue fund shall be used solely for implementing the program plan which provides funds for budget purposes to fund one-time expenditures, short- term revenue shortfalls, and to fund capital projects of any kind. No more than $175 million of the net bond proceeds may be used in any fiscal year.

The authority shall dissolve no later than two years from the date of final payment of all outstanding bonds and the satisfaction of all outstanding obligations of the authority, except to the extent necessary to fulfill outstanding covenants or provisions with bondholders or third parties.

The Board of Public Buildings is expanded to include the Speaker of the House of Representatives and the President Pro Tem of the Senate as ex officio members. The Board currently includes the Governor, Attorney General and the Lieutenant Governor. This portion is identical to HB 1451 (2002).

The Advisory Committee on Tobacco Securitization is created as a joint committee of the General Assembly. The Committee will consist of five members from each body of the General Assembly. The Committee shall study and recommend financial advisors, investment bankers and other professional advisors for the Authority. The Committee shall make a written report within 60 days of passage of the bill and by December 31, annually.

This act contains an emergency clause.