6828 AMH  FRAS 44

SB 6828 - H AMD TO H AMD (H-4864.3/02) 0545 FAILED 3-12-02

By Representative ___

     On page 6 of the striking amendment, after line 32, insert the following:

     "(2) Prior to issuing bonds pursuant to this section, the authority shall determine whether in any year annual debt service payments attributable to those bonds will exceed twenty percent of the projected payment to the state for that year under the master settlement agreement.  If the authority determines that in any year the annual debt service payments will exceed twenty percent of projected payments for that year, then the authority's ability to issue bonds pursuant to this section is terminated, and any sales agreement between the state and the authority pursuant to section 7 of this act is null and void."

     Renumber remaining subsections consecutively and correct internal references accordingly.

EFFECT:  If debt service payments for the bonds are projected to  exceed twenty percent of tobacco revenues, then the Authority may not issue the bonds and the state's sale of the right to receive the tobacco revenues is null and void.