HS HCS SS#2 SB 1191 -- TOBACCO SETTLEMENT FINANCING AUTHORITY
ACT; BOARD OF PUBLIC BUILDINGS

This bill allows the state to sell a portion of its share of
tobacco settlement proceeds through the Missouri Tobacco
Settlement Authority, which is created by the bill.  The
authority will consist of the Governor, Lieutenant Governor, and
Attorney General, with the Speaker of the House of
Representatives and the President Pro Tempore of the Senate as ex
officio members without the power to vote.  The State Treasurer
may also serve as an ex officio member without the power to vote.
The Governor may sell or assign to the authority up to 30% of the
state's share of tobacco settlement proceeds.  The authority may
receive appropriations from the state in order to secure debt
obligations with a maturity of a year or less.

Proceeds from bonds issued by the authority will be deposited in
the Tobacco Securitization Settlement Trust Fund.  Moneys in the
fund must 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 will be deposited in the former account and used
to reimburse the state.  Net proceeds from taxable bonds will be
deposited in the latter account and transferred to the State
Treasurer for deposit in the General Revenue Fund.  No more than
$175 million of the net proceeds of the bonds will be used during
any fiscal year.

Amounts deposited in the General Revenue Fund will be used solely
for implementing the program plan which provides moneys for
budget purposes to fund one-time expenditures, short-term revenue
shortfalls, and capital projects.

The authority will not have the power to agree to or pay any
expenses, reimbursements, insurance, or credit enhancements that
exceed 1.5% of the total sales price of the bonds or other
funding options.  The authority will dissolve no later than two
years from the date of the 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 bill establishes the Advisory Committee on Tobacco
Securitization as a joint committee of the General Assembly
consisting of five members of each chamber.  The committee will
study and recommend in writing the choice of financial advisors,
investment bankers, and professional advisors within 60 days of
the bill's passage and study and submit a written report of
suggested allowable projects by December 31 of each year.

The bill adds the Speaker of the House of Representatives and the
President Pro Tempore of the Senate as ex officio members of the
Board of Public Buildings without the power to vote.  The board
may receive appropriations from the state in order to secure debt
obligations with a maturity of a year or less.

The bill contains an emergency clause and will be effective on
the date of its approval or on May 17, 2002, whichever occurs
later.

Missouri House of Representatives
Last Updated October 11, 2002 at 9:04 am