8.550. Tobacco securitization settlement trust fund established, source of fund moneys, uses--qualified tax-exempt expenditure account and taxable expenditure account authorized.
Tobacco securitization settlement trust fund established, source offund moneys, uses--qualified tax-exempt expenditure account andtaxable expenditure account authorized.
8.550. 1. A tobacco securitization settlement trust fund isestablished, separate and apart from all other public moneys or funds of thestate, under the control of the authority. The fund shall consist of moneyspaid to the authority and not pledged to the payment of bonds or otherwiseobligated or any other moneys deposited to the fund by the authority. Suchmoneys shall include but are not limited to payments received from the mastersettlement agreement which are not pledged to the payment of bonds or whichare subsequently released from a pledge to the payment of any bonds; paymentswhich, in accordance with any sales agreement with the state, are to be paidto the state and not pledged to the bonds, including that portion of theproceeds of any bonds designated for purchase of a portion of the state'sshare, which are designated for deposit in the fund, together with allinterest, dividends, and rents on the bonds; and all securities or investmentincome and other assets acquired by and through the use of the moneysbelonging to the fund and any other moneys deposited in the fund. Moneys inthe fund are to be used solely and only as provided in this section, and shallnot be used for any other purpose. Such moneys shall not be available for thepayment of any claim against the authority or any debt or obligation of theauthority.
2. There shall be established within the tobacco securitizationsettlement trust fund a "qualified tax-exempt expenditure account" and a"taxable expenditure account". The net proceeds of all tax-exempt bonds shallbe deposited in the qualified tax-exempt expenditure account. The netproceeds of all taxable bonds shall be deposited in the taxable expenditureaccount. Moneys deposited in the qualified tax-exempt expenditure accountshall be used to pay or reimburse the state for expenditures which arepermissible under federal tax law governing tax-exempt bonds. Upon suchreimbursement or use such moneys shall be transferred by the authority to thestate treasurer for deposit in the state general revenue fund and applied asprovided in subsection 4 of this section or to such other fund as may beprovided by law. Moneys deposited in the taxable expenditure account shall,upon direction of the authority, be transferred to the state treasurer fordeposit in the state general revenue fund or to such other fund as may beprovided by law.
3. For the purpose of maximizing the amount of tax-exempt bonds to beissued, the governor or an authorized designee may evidence in writing thestate's intent to finance any state expenditure from the proceeds of bondseither by directly funding such expenditure or through reimbursement ofamounts originally funded from another source. An allocation of proceeds ofbonds to finance any expenditure originally funded from another source may beevidenced by a written statement signed by the governor or an authorizeddesignee. Upon such allocation, the amount allocated shall be deposited tothe general revenue fund of the state and thereafter may be appropriated forany purpose. The treasurer of the authority shall act as custodian andtrustee of the tobacco securitization settlement trust fund and shalladminister the fund as directed by the authority. The treasurer of theauthority shall do all of the following: hold, invest and disburse funds;sell any securities or other property held by the fund and reinvest theproceeds as directed by the authority, when deemed advisable by the authorityfor the protection of the fund or the preservation of the value of theinvestment; subscribe, at the direction of the authority, for the purchase ofsecurities for future delivery in anticipation of future income; and pay forsecurities, as directed by the authority, upon the receipt of the purchasingentity's paid statement or paid confirmation of purchase. Any sale ofsecurities or other property held by the fund under this subsection shall onlybe made with the advice of the board in the manner and to the extent providedin sections 8.500 to 8.565 with regard to the purchase of investments.
4. All moneys paid to or deposited in the fund are available to theauthority to be used in accordance with sections 8.500 to 8.565, including butnot limited to all of the following:
(1) For payment of amounts due to the state pursuant to the terms of thesales agreements entered into between the state and the authority;
(2) For purposes of paying or reimbursing the state for expenditureswhich are permissible under federal tax law governing tax-exempt bonds;provided, such moneys are transferred at the time of such payment orreimbursement to the state treasurer for deposit in the state general revenuefund and used by the state treasurer solely to pay the costs of implementingthe program plan;
(3) For transfer to the state general revenue fund for the payment ofthe costs of implementing the program plan;
(4) To make interim transfers to the state as provided in subsection 5of this section; and
(5) For payment of any other costs other than the payment of bondsapproved by the authority to implement sections 8.500 to 8.565.
5. Prior to disbursement of the moneys in the tobacco securitizationsettlement trust fund in accordance with subsection 4 of this section, theauthority shall have the power to transfer moneys in the fund to the stategeneral revenue fund for the purposes of funding the program plan on aninterim basis, provided the state agrees to reimburse the tobaccosecuritization settlement trust fund before the date such moneys are expectedto be expended by the authority.
6. No more than one hundred seventy-five million dollars of the netproceeds of bonds authorized by sections 8.500 to 8.565 may be applied to thepayment of the costs of the program plan during any fiscal year; provided,amounts not so applied during a prior fiscal year may be carried over andapplied to costs of implementing the program plan during the next successivefiscal year.
(L. 2002 S.B. 1191)Effective 6-07-02
*Section terminates upon satisfaction of all outstanding notes and obligations issued pursuant to sections 8.500 to 8.590. See section 8.589.