COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 1371-05
Bill No.: SB 436
Subject: General Obligation and Revenue Bonds; Tobacco Products
Type: Original
Date: February 10, 2003
FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials from the Office of the Governor, Secretary of State, Office of the Attorney General, Office of the State Treasurer, Office of the State Auditor, and the Office of Administration, Division of Accounting and Division of Budget and Planning assume this legislation would not fiscally impact their respective agency or that any potential costs arising from this proposal can be absorbed with existing resources.
Oversight assumes this proposal is enabling legislation and there would be no fiscal impact.
| FISCAL IMPACT - State Government | FY 2004 | FY 2005 | FY 2006 |
| $0 | $0 | $0 | |
| FISCAL IMPACT - Local Government | FY 2004 | FY 2005 | FY 2006 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal makes changes to the authorization allowing securitization through the sale of bonds of a portion of the state's annual tobacco settlement payments. Under current law, a limit of $175 million of the bond proceeds could be used in any one fiscal year. Any unused amount could be carried forward and be cumulatively added to the next fiscal year's expenditure allowance of $175 million.
The proposal changes this provision by capping Fiscal Year 2003 expenditures of the proceeds at $100 million and limiting future expenditures to no more than $300 million in any subsequent fiscal year.
The bill also clarifies the law allowing concurrent authority to the Board of Public Buildings to issues bonds for securitization with the Tobacco Settlement Financing Authority and requires all proceeds from the bond sale to be deposited in the Tobacco Securitization Settlement Trust Fund.
The bill contains an emergency clause.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Secretary of State
Office of the Attorney General
State Treasurer
Office of Administration
Division of Accounting
Budget and Planning
Office of the Governor
Office of the State Auditor
Mickey Wilson, CPA
Director
February 10, 2003