6828 AMH  FRAS 53

SB 6828 - H AMD TO H AMD (H-4864.3/02) 0564 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 be deposited in the tobacco securitization trust account to the total future payments under the master settlement agreement that the state would otherwise receive from the portion sold under section 7 of this act.  If the authority determines that the expected net proceeds will be less than twenty-five percent of the total future payments that the state would otherwise receive from the portion sold under section 7 of this act, 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 revenues from the sale will be less than 25% of the total of future payments under the Master Settlement Agreement for the portion sold, 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.