HB 401 -- Tobacco Settlement Payment Securitization

Co-Sponsors:  Pratt, Bearden, Icet, Byrd, Hanaway, Phillips,
Crowell, Schaaf, Yates

This bill 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 bill 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.

Missouri House of Representatives
Last Updated July 25, 2003 at 10:11 am