- Perfected -

SS/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, Attorney General, President Pro Tem of the Senate and the Speaker of the House of Representatives. 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.

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.

This act contains an emergency clause.

CINDY KADLEC