Text: S05618 Text: S05620 Text: S05600 - S05699 Text: S Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Amend House File 2579, as amended, passed, and
1 2 reprinted by the House, as follows:
1 3 #1. By striking everything after the enacting
1 4 clause and inserting the following:
1 5 "Section 1. FINDINGS AND INTENT.
1 6 1. The general assembly finds that certain leading
1 7 United States tobacco product manufacturers have
1 8 entered into the master settlement agreement with
1 9 various states and commonwealths of the United States,
1 10 including this state, obligating the manufacturers, in
1 11 return for a release of past, present, and certain
1 12 future claims against them as described in the
1 13 agreement, to pay substantial sums to the states,
1 14 subject to future adjustments.
1 15 2. Due to uncertainties related to any future
1 16 adjustments in the sums to be paid under the master
1 17 settlement agreement, it is the intent of the general
1 18 assembly to determine if it is in the best interest of
1 19 the state to develop a plan to provide for alternative
1 20 funding options for conversion of all or a portion of
1 21 the future payments into current funds, which, in
1 22 turn, would be invested to provide a stable and secure
1 23 source of future revenue.
1 24 3. It is also the intent of the general assembly
1 25 that a determination be made regarding whether, in
1 26 order to provide for the receipt of payments under the
1 27 master settlement agreement, to provide for issuance
1 28 of bonds, and to provide that the bonds and the
1 29 administration of the bonds be separate from the
1 30 general credit of the state, it is in the best
1 31 interest of the state to create a separate and
1 32 distinct state instrumentality to which all or a
1 33 portion of the amounts received under the master
1 34 settlement agreement might be transferred and to grant
1 35 this instrumentality necessary powers and duties. If
1 36 it is in the best interest of the state, such an
1 37 instrumentality would necessarily benefit the people
1 38 of the state by better securing a future source of
1 39 revenues to meet the needs and goals of the state and
1 40 to avoid obligations by the state, and by performing
1 41 an essential government function in carrying out its
1 42 powers and duties. Such an instrumentality would not
1 43 create any obligation of this state or any political
1 44 subdivision of this state within the meaning of any
1 45 constitutional or statutory debt limitation.
1 46 Sec. 2. EVALUATION – REPORT TO LEGISLATIVE
1 47 COUNCIL AND GOVERNOR.
1 48 1. In order to make the determinations specified
1 49 in section 1 of this Act, a task force shall be
1 50 assembled to evaluate alternative funding options and
2 1 to propose a structure for the administration of any
2 2 funding options.
2 3 a. Any such funding options may include, but are
2 4 not limited to, selling or pledging all or a portion
2 5 of the state's share to a separate and distinct state
2 6 instrumentality to issue bonds to provide for future
2 7 revenues.
2 8 b. Any bonds issued would be payable solely from
2 9 and secured solely by the sums received under the
2 10 master settlement agreement and other funds pledged by
2 11 the instrumentality. The bonds would not, in any
2 12 event, constitute a claim against the full faith and
2 13 credit or taxing powers of the state.
2 14 c. Any sale or pledge of all or a portion of the
2 15 state's share would be irrevocable during the time
2 16 when bonds are outstanding and would not be a part of
2 17 the contractual obligation owed to the bondholders.
2 18 The sale would constitute and be treated as a true
2 19 sale and absolute transfer of the property so
2 20 transferred and not as a pledge or other security
2 21 interest for any borrowing. The characterization of
2 22 such a sale as an absolute transfer would not be
2 23 negated or adversely affected by the fact that only a
2 24 portion of the state's share was being sold, or by the
2 25 state's acquisition or retention of an ownership
2 26 interest in the residual assets.
2 27 d. On or after the effective date of such sale,
2 28 the state would have no right, title, or interest in
2 29 the portion of the master settlement agreement sold
2 30 and such portion would be the property of the
2 31 instrumentality and not the state, and would be owned,
2 32 received, held, and disbursed by the instrumentality
2 33 or its trustee or assignee, and not the state.
2 34 2. The task force shall include all of the
2 35 following members:
2 36 a. The treasurer of state, or the treasurer's
2 37 designee.
2 38 b. The auditor of state, or the auditor's
2 39 designee.
2 40 c. The director of the department of management,
2 41 or the director's designee.
2 42 d. The attorney general, or the attorney general's
2 43 designee.
2 44 e. One member of the senate, selected by the
2 45 majority leader and one member of the senate, selected
2 46 by the minority leader.
2 47 f. One member of the house of representatives,
2 48 selected by the majority leader, and one member of the
2 49 house of representatives, selected by the minority
2 50 leader.
3 1 3. The task force shall receive testimony and
3 2 shall develop a program plan. The program plan shall
3 3 include but is not limited to all of the following:
3 4 a. An analysis of alternative funding options.
3 5 b. The proposed structure of any state
3 6 instrumentality to administer any funding option.
3 7 c. The investment criteria to be used in investing
3 8 funds.
3 9 d. Recommendations to the governor and the general
3 10 assembly regarding necessary statutory changes to
3 11 implement any funding option.
3 12 e. Recommendations as to the immediacy required
3 13 for implementation of any funding option, including
3 14 whether immediate action by the general assembly is
3 15 required.
3 16 4. The task force shall submit the program plan to
3 17 the legislative council and to the governor on or
3 18 before September 1, 2000.
3 19 5. For the purposes of this Act:
3 20 a. "Master settlement agreement" means the master
3 21 settlement agreement as defined in section 453C.1.
3 22 b. "State's share" means all of the state's
3 23 monetary rights and interests, all rights of
3 24 enforcement, and all rights necessary and convenient
3 25 for enforcement of those monetary rights and interests
3 26 in the master settlement agreement.
3 27 Sec. 3. EFFECTIVE DATE. This Act, being deemed of
3 28 immediate importance, takes effect upon enactment."
3 29 #2. Title page, by striking lines 1 and 2, and
3 30 inserting the following: "An Act establishing a task
3 31 force to evaluate funding options for the funds
3 32 received under the tobacco master settlement
3 33 agreement, and providing an effective date."
3 34
3 35
3 36
3 37 COMMITTEE ON JUDICIARY AMENDMENT,
3 38 ANDY McKEAN, CHAIRPERSON
3 39 HF 2579.503 78
3 40 pf/as
Text: S05618 Text: S05620 Text: S05600 - S05699 Text: S Index Bills and Amendments: General Index Bill History: General Index
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