- Introduced -

SB 1191 - This act provides that whenever actual revenues are less than the revenue estimates upon which appropriations are based, or when the Governor makes a declaration of budgetary emergency, the Board of Public Buildings ("Board") may issue bonds to be repaid with net tobacco recoveries. The proceeds from such a bond issuance or sale of revenue may be used for any governmental purpose. The bond issuance or sale of future revenues is limited to $500 million.

Tobacco bonds issued shall, as determined by the Board, bear interest at such rate or rates not to exceed 15% per annum, and shall mature at such time or times within forty years from issuance. The bonds may be term bonds or serial bonds.

Tobacco bonds may be refunded in the following circumstances:

(1) When any bonds have become due and payable and there are not sufficient funds in the interest and sinking fund to provide for payment with interest;

(2) When bonds are called for payment and redemption in advance of their date of maturity;

(3) When bonds are voluntarily surrendered by the holders for exchange for refunding bonds. Such refund bonds shall be payable from the sources which were pledged to the payment of the bonds of from certain other sources as the Board may specify.

Tobacco bonds may be issued pursuant to resolution adopted by an affirmative vote of two-thirds of the members of the board.

This act contains an emergency clause.

ERIC ROSENKOETTER