6828 AMH  FRAS 47

SB 6828 - H AMD TO H AMD (H-4864.3/02) 0547 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 calculate the ratio of expected net proceeds to the present value of the total future payments that the state would otherwise receive under the master settlement agreement from the portion sold under section 7 of this act.  If the authority determines that the expected net proceeds will be less than eighty-five percent of the present value of the total future payments that the state would otherwise receive, 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 the Authority determines that projected net proceeds from the sale will be less than 85% of the present value of the future payments securitized, 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.