Chapter 045

2007 -- H 6473 SUBSTITUTE A

Enacted 06/15/07

A N A C T

RELATING TO THE TOBACCO SETTLEMENT FINANCING CORPORATION

Introduced By: Representatives Costantino, Fox, and Slater

Date Introduced: May 31, 2007

It is enacted by the General Assembly as follows:

     SECTION 1. The Tobacco Settlement Financing Corporation is authorized prior to

August 1, 2007 to raise additional money pursuant to the Tobacco Settlement Financing

Corporation Act not to exceed one hundred ninety-five million dollars ($195,000,000) of net

bond proceeds to be paid to the state of Rhode Island to be applied for various purposes of the

state as specified by the general assembly.

     SECTION 2. To implement and effectuate the purposes of this act, the Governor, acting

by and through state general officers, state departments, agencies and the Tobacco Settlement

Financing Corporation ("Corporation"), which was established pursuant to Rhode Island general

laws chapter 42-133 ("Tobacco Settlement Financing Corporation Act"), is hereby authorized

and empowered to:

(a) assign, or otherwise convey, to the corporation or its designee for the purposes

described herein, any and all of the state's residual interest, including residual certificates

("Residuals"), arising out of the previous sale to the corporation of "state's tobacco receipts", as

such term is defined in the Tobacco Settlement Financing Corporation Act, and representing a

residual claim against such state's tobacco receipts;

(b) effectuate one securitization transaction prior to August 1, 2007 pursuant to the

provisions of the Tobacco Settlement Financing Corporation Act which authorizes and governs

the issuance of Bonds, as such term is defined in the Tobacco Settlement Financing Corporation

Act, to monetize the residuals and create additional cash proceeds;

(c) distribute the proceeds of the securitization transactions to the state to be used in

accordance with the purposes of this act, provided that the allocation of funds shall be made by

the general assembly pursuant to the annual appropriation process; and

(d) take such additional action, or enter into such additional agreements, as may be

necessary or desirable to effect the purposes of this act.

     SECTION 3. The Tobacco Settlement Financing Trust, a fund established pursuant to

section 42-133-9 shall receive all proceeds, net of financing costs, due to the state from the

securitizations.

     SECTION 4. This act shall take effect upon passage.

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LC03239/SUB A

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