ENGROSSED
Senate Bill No. 178
(By Senators Tomblin, Mr. President, and Sprouse,
By Request of the Executive)
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[Introduced January 11, 2002; referred to the Committee
on Finance.]
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A BILL to amend and reenact sections one, two and three, article
eleven-a, chapter four of the code of West Virginia, one
thousand nine hundred thirty-one, as amended; and to further
amend said article by adding thereto seventeen new sections,
designated sections six through twenty-one, inclusive, all
relating to legislative appropriation of tobacco settlement
funds; setting forth legislative findings and purposes;
receipt of settlement funds and required deposit in West
Virginia tobacco settlement medical trust fund; receipt of
settlement funds and required deposit in the West Virginia
tobacco settlement fund; creation of tobacco settlement
authority and providing for general powers; establishing
governing board of authority; defining staff of the authority;
limitation of liability; providing certain definitions;
authorizing sale of rights in a master settlement agreement; authorization of bonds of the authority; providing for the
establishment of a tobacco settlement endowment fund and for
the investment of funds therein; creating a tobacco settlement
debt service fund; providing an exemption from state
purchasing provisions; providing for the delivery of an annual
report by the authority to the governor; providing bankruptcy
provisions; establishing the dissolution of the authority;
severability of sections; and construction of article.
Be it enacted by the Legislature of West Virginia:
That sections one, two and three, article eleven-a, chapter
four of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended and reenacted; and that said
article be further amended by adding thereto sixteen new sections,
designated sections six through twenty-one, inclusive, all to read
as follows:
ARTICLE 11A. LEGISLATIVE APPROPRIATION OF TOBACCO SETTLEMENT
FUNDS; CREATION OF TOBACCO SETTLEMENT FINANCE AUTHORITY.
§4-11A-1. Legislative findings and purpose.
(a) On the twenty-third day of November, one thousand nine
hundred ninety-eight, tobacco product manufacturers entered into a
settlement agreement with the state. This "master settlement
agreement" releases those manufacturers from past, present and
specific future claims against them in return for payment of annual
sums of money to the state, obligates the manufacturers to change
their advertising and marketing practices, and requires the establishment by the manufacturers of a national foundation for the
interests of public health.
(b) The revenues received pursuant to the master settlement
agreement are directly related to the past, present and future
costs incurred by the state for the treatment of tobacco-related
illnesses. The purpose of this article is to preserve the revenues
received from the settlement.
(c) The receipt of funds in accordance with the master
settlement agreement shall be deposited only in accordance with the
provisions of this article.
(d) West Virginia receives approximately seventy million
dollars in revenue each year under the terms of the master
settlement agreement with the tobacco manufacturers. The revenue
is used to fund programs of vital importance to the people of West
Virginia and the Legislature finds that it is in the best interest
of the people of this state to protect these revenues.
(e) The sale of a portion of
such the revenues, the issuance
of bonds payable
therefrom from the revenues and
the establishment
of a permanent endowment fund with the application of proceeds of
such the bonds to provide funding for programs of vital importance
to the people of West Virginia is in the best interest of the
people of this state.
§4-11A-2. Receipt of settlement funds and required deposit in West
Virginia tobacco settlement medical trust fund.
(a) The Legislature finds and declares that certain dedicated revenues should be preserved in trust for the purpose of
stabilizing the state's health-related programs and delivery
systems. It further finds and declares that these dedicated
revenues should also be preserved in trust for the purpose of
educating the public about the health risks associated with tobacco
usage and for the establishment of a program designed to reduce and
stop the use of tobacco by the citizens of this state and in
particular by teenagers.
(b) There is hereby created a special account in the state
treasury, designated the "West Virginia Tobacco Settlement Medical
Trust Fund", which shall be an interest-bearing account and may be
invested in the manner permitted by section
nine twelve, article
six, chapter twelve of this code, with the interest income a proper
credit to the fund. The fund shall consist of a principal
sub-account and an interest sub-account. Unless contrary to federal
law, fifty percent of all revenues received pursuant to the master
settlement agreement and not sold by the state pursuant to section
thirteen of this article shall be deposited in this fund. Funds
paid into the account may also be derived from the following
sources:
(1) All interest or return on investment accruing to the fund;
(2) Any gifts, grants, bequests, transfers or donations which
may be received from any governmental entity or unit or any person,
firm, foundation or corporation; and
(3) Any appropriations by the Legislature which may be made for this purpose.
(c) The moneys from the principal sub-account in the trust
fund may not be expended for any purpose. The moneys in the
interest sub-account in the trust fund resulting from interest
earned on the moneys in the fund and the return on investments of
the moneys in the fund shall be available only upon appropriation
by the Legislature as part of the state budget and expended in
accordance with the provisions of section three of this article
.:
Provided, That no moneys on deposit in the interest sub-account in
the trust fund shall be expended for any purpose prior to July 1,
2012.
§4-11A-3. Receipt of settlement funds and required deposit in the
West Virginia tobacco settlement fund.
(a) There is hereby created in the state treasury a special
revenue account, designated the "Tobacco Settlement Fund", which
shall be an interest bearing account and may be invested in the
manner permitted by the provisions of article six, chapter twelve
of this code, with the interest income a proper credit to the fund.
Unless contrary to federal law, fifty percent of all revenues
received pursuant to the master settlement agreement
, and not sold
by the state pursuant to section thirteen of this article, shall be
deposited in this fund. These funds shall be available only upon
appropriation by the Legislature as part of the state budget
:
Provided, That for the fiscal year two thousand, the first five
million dollars received into the fund shall be transferred to the public employees insurance reserve fund created in article two,
chapter five-a of this code.
(b) Appropriations from the tobacco settlement fund are
limited to expenditures for the following purposes:
(1) Reserve funds for continued support of the programs
offered by the public employees insurance agency established in
article sixteen, chapter five of this code;
(2) Funding for expansion of the federal-state medicaid
program as authorized by the Legislature or mandated by the federal
government;
(3) Funding for public health programs, services and agencies;
and
(4) Funding for any state-owned or operated health facilities.
(c) Notwithstanding the provisions of section two, article
two, chapter twelve of this code, moneys within the tobacco
settlement trust fund may not be redesignated for any purpose other
than those set forth in this section.
§4-11A-6. Creation of tobacco settlement finance authority.
(a) The tobacco settlement finance authority is hereby created
and constitutes a body corporate and politic, constituting a public
corporation and government instrumentality, separate from the
state, exercising public and essential governmental functions.
(b) The purposes of the authority include all of the
following:
(1) To establish a stable source of revenue to be used for the purposes designated in this article;
(2) To enter into sales agreements;
(3) To issue bonds and enter into funding options, consistent
with this article, including refunding and refinancing its debt and
obligations;
(4) To sell, pledge or assign, as security or consideration,
all or a portion of the state's share sold to the authority
pursuant to a sales agreement to provide for and secure the
issuance and repayment of its bonds;
(5) To invest funds as provided under this article;
(6) To enter into agreements with the state for the periodic
distribution of amounts due the state under any sales agreement;
(7) To refund and refinance the authority's debts and
obligations and to manage its funds, obligations and investments as
necessary and if consistent with its purpose;
(8) To sell, pledge or assign, as security or consideration,
all or a portion of the state's share to implement alternative
funding options; and
(9) To implement the purposes of this article.
(c) The authority shall invest its funds and accounts in
accordance with this chapter and shall not take any action or
invest in any manner that would cause the state to assume or agree
to pay the debt or liability of any corporation in violation of the
United States constitution or the constitution of the state of West
Virginia.
(d) The authority shall not create any obligation of this
state or any political subdivision of this state within the meaning
of any constitutional or statutory debt limitation.
(e) The authority shall not pledge the credit or taxing power
of the state or any political subdivision of this state, or make
its debts payable out of any moneys except those of the authority
specifically pledged for their payment.
(f) The authority shall have no other assets or property than
the portion of the state's share it received and the right to
receive its portion, purchased by sales agreement, proceeds of
bonds held as security for the bonds and investment income on the
proceeds.
§4-11A-7. Definitions.
Unless the context clearly indicates otherwise, as used in
this article:
(a) "Authority" means the tobacco settlement finance authority
created in this article.
(b) "Board" means the governing board of the authority.
(c) "Bonds" means bonds, notes and other obligations and
financing arrangements issued or entered into by the authority
pursuant to this article.
(d) "Consolidated public retirement board" means the board
created to administer all public retirement plans in this state
under article ten-d, chapter five of this code and any board or
agency that succeeds to the powers and duties of the consolidated public retirement board.
(e) "Financial institution" means a bank, trust company or
credit union within or outside the state.
(f)
"Interest rate agreement" means an interest rate swap or
exchange agreement, an agreement establishing an interest rate
floor or ceiling or both, or any similar agreement. Any agreement
may include the option to enter into or cancel the agreement or to
reverse or extend the agreement.
(g) "Master settlement agreement" means the master settlement
agreement as defined in section one of this article.
(h) "Medical trust fund" means the West Virginia medical trust
fund created in section two of this article.
(i) "Net proceeds" means the amount of proceeds remaining
following each sale of bonds which are not required by the
authority to establish and fund reserve funds, to fund capitalized
interest, if any, and to pay the costs of issuance and other
expenses and fees directly related to the authorization and
issuance of bonds.
(j) "Notes" means notes, warrants, loan agreements and all
other forms of evidence of indebtedness authorized under this
article.
(k) "Qualified investments" means investments of the authority
authorized pursuant to this article.
(l) "Sales agreement" means any agreement authorized pursuant
to this article in which the state provides for the sale of all or a portion of the state's share to the authority.
(m) "State's share" means all of the following:
(1) All payments required to be made by tobacco product
manufacturers to the state and the state's rights to receive the
payments, under the master settlement agreement; and
(2) To the extent that the amounts have been assigned to the
state, all payments of attorney fees required to be made by tobacco
product manufacturers under the master settlement agreement and all
rights to receive the attorney fees.
(n) "Tax-exempt bonds" means bonds issued by the authority
that are accompanied by a written opinion of legal counsel to the
authority that the bonds are excluded from the gross income of the
recipients for federal income tax purposes.
(o) "Taxable bonds" means bonds issued by the authority that
are not accompanied by a written opinion of legal counsel to the
authority that the bonds are excluded from the gross income of the
recipients for federal income tax purposes.
(p) "Teachers retirement pension system" means the retirement
system established in article seven-a, chapter eighteen of this
code.
(q) "Tobacco settlement debt service fund" means the tobacco
settlement debt service fund created in section fifteen-a of this
article.
(r) "Tobacco settlement fund" means the tobacco settlement
fund created in section three of this article.
§4-11A-8. Powers not restricted; law complete in itself.
This article shall not restrict or limit the powers that the
authority has under any other law of this state, but is cumulative
as to those powers. A proceeding, notice or approval is not
required for the creation of the authority or the issuance of
obligations or an instrument as security, except as provided in
this chapter.
§4-11A-9. Governing board.
(a) The powers of the authority are vested in and shall be
exercised by a board of five individuals, each appointed by the
governor, with the advice and consent of the Senate, four of whom
shall have skill and experience in finance and one of whom shall
have skill and experience in health care.
(b) Four members of the board constitute a quorum.
(c) The members shall elect a chairperson, vice chairperson,
and secretary, annually, and other officers as the members
determine necessary. The treasurer of state shall serve as
treasurer of the authority.
(d) Meetings of the board shall be held at the call of the
chairperson or when a majority of the members so request.
(e) The members of the board shall not receive compensation by
reason of their membership on the board.
(f) Two of the original members of the authority appointed by
the governor shall serve two-year terms and three shall serve
three-year terms. Thereafter, members of the authority shall serve four-year terms. Any member whose term has expired shall serve
until his or her successor has been duly appointed and qualified.
Any person appointed to fill a vacancy shall serve only for the
unexpired term.
§4-11A-10. Staff; assistance by state officers, agencies and
departments.
(a) The staff of the office of the department of
administration, under the supervision of the secretary of the
department of administration shall also serve as staff of the
authority.
(b) State officers, agencies and departments may render
services to the authority within their respective functions, as
requested by the authority.
§
4-11A-11. Limitation of liability.
Members of the board and persons acting on the authority's
behalf, while acting within the scope of their employment or
agency, are not subject to personal liability resulting from
carrying out the powers and duties conferred on them under this
article.
§
4-11A-12. General powers.
(a) The authority has all the general powers necessary to
carry out its purposes and duties and to exercise its specific
powers, including, but not limited to, all of the following powers:
(1) The power to issue its bonds and to enter into other
funding options as provided in this article;
(2) The power to have perpetual succession as a public
instrumentality, until dissolved in accordance with this article;
(3) The power to sue and be sued in its own name;
(4) The power to make and execute agreements, contracts and
other instruments, with any public or private person, in accordance
with this chapter;
(5) The power to hire and compensate legal counsel, bond
counsel, underwriters, consultants and advisors;
(6) The power to hire investment advisors and other persons as
necessary to fulfill its purpose;
(7) The power to invest or deposit moneys in the manner
permitted by section eight, article six, chapter twelve of this
code;
(8) The power to procure insurance, other credit enhancements
and other financing arrangements and to execute instruments and
contracts and to enter into agreements convenient or necessary to
facilitate financing arrangements of the authority and to fulfill
the purposes of the authority under this article, including, but
not limited to, such arrangements, instruments, contracts and
agreements as municipal bond insurance, liquidity facilities,
interest rate agreements and letters of credit;
(9) The power to accept appropriations, gifts, grants, loans
or other aid from public or private entities;
(10) The power to adopt and promulgate rules, consistent with
this article and in accordance with this code, as the board determines necessary;
(11) The power to acquire, own, hold, administer and dispose
of property;
(12) The power to determine, in connection with the issuance
of bonds and subject to the sales agreement, the terms and other
details of financing; and
(13) The power to perform any act not inconsistent with
federal or state law necessary to carry out the purposes of the
authority.
§4-11A-13. Authorization of the sale of rights in the master
settlement agreement.
(a) The governor or the governor's designee shall sell and
assign all or a portion of the state's share to the authority
pursuant to one or more sales agreements for the purpose of
securitization of all or a portion of amounts received by the state
under the master settlement agreement.
(b) The terms and conditions of the sale established in any
sales agreement shall include the following:
(1) A requirement that the state enforce, at the sole expense
of the authority, the provisions of the master settlement agreement
that require payment of the state's share that has been sold to the
authority under a sales agreement;
(2) A requirement that the state not agree to any amendment of
the master settlement agreement that materially and adversely
affects the authority's ability to receive the state's share that has been sold to the authority;
(3) An agreement that the anticipated use by the state of bond
proceeds received pursuant to the sales agreement shall be for the
purposes set forth in this article, payment of attorney fees
related to the master settlement agreement and to provide a secure
and stable source of funding to the state for purposes designated
by this article;
(4) A statement that the net proceeds from the sale of bonds
shall be transferred to the consolidated public retirement board to
be applied to the teachers retirement pension system and that in no
event shall net proceeds be available or be applied for payment of
bonds or any claim against the authority or any debt or obligation
of the authority;
(5) A requirement that the net proceeds received by the
authority from the sale of any tax-exempt bonds issued to provide
funds for the purposes set forth in this article be paid by the
authority to the state as consideration for the sale of that
portion of the state's share, that the net proceeds be by the state
upon receipt to the consolidated public retirement board to be
applied to the teachers retirement pension system and that the
proceeds are to be held by the authority solely for the benefit of
the state to be used as provided in this article. Each amount
transferred shall be the consideration received by the state for
that portion of the state's share;
(6) A requirement that the net proceeds received by the authority from the sale of taxable bonds issued to provide funds
for the purposes set forth in this article be paid by the authority
to the state as consideration for the sale of that portion of the
state's share, that the net proceeds be transferred by the state
upon receipt to the consolidated public retirement board to be
applied to the teachers retirement pension system and that the
proceeds are to be held by the authority solely for the benefit of
the state to be used as provided in this article. Each amount
transferred shall be the consideration received by the state for
that portion of the state's share;
(7) An agreement that the effective date of the sale is the
date of receipt of the bond proceeds by the authority and the
deposits of the net proceeds of the tax-exempt bonds and any
taxable bonds as provided in this article.
(8) In the event of the sale of more than fifty percent of the
state's share to the authority, a requirement that sufficient net
proceeds of bonds be transferred to the tobacco settlement fund for
acquisition of an annuity or other investment, the corpus and
earnings of which will be used to replace the state's share over a
predetermined period on a declining basis, not to exceed ten years,
that would otherwise be available for appropriation from the
tobacco settlement fund; and
(9) An agreement by the state that subsequent to the transfer
of bond proceeds to the consolidated public retirement board for
application to the teachers retirement pension system should any increase of existing benefits or the creation of new benefits
effected by operation of law in effect on the effective date of
this article, cause any unfunded actuarial accrued liability, as
defined in section three, article eight, chapter twelve of this
code, in the teachers retirement pension system (calculated in an
actuarially sound manner) during any fiscal year, such additional
unfunded actuarial accrued liability of the teachers retirement
pension system will be fully amortized over no more than five
consecutive fiscal years following the date the increase in
benefits or new benefits become effective.
(c) The sale made under this section is irrevocable during the
time when bonds are outstanding under this article and is a part of
the contractual obligation owed to the bondholders. The sale shall
constitute and be treated as a true sale and absolute transfer of
the property so transferred and not as a pledge or other security
interest for any borrowing. The characterization of a sale as an
absolute transfer shall not be negated or adversely affected by the
fact that only a portion of the state's share is being sold, or by
the state's acquisition or retention of an ownership interest in
the residual assets.
(d) On or after the effective date of the sale, the state
shall not have any right, title or interest in the portion of the
state's share sold and the portion shall be the property of the
authority and not the state, and shall be owned, received, held and
disbursed by the authority or its trustee or assignee and not the state.
(e) On or before the effective date of the sale, the state
shall notify the escrow agent under the master settlement agreement
of the sale and shall instruct the escrow agent that subsequent to
that date, all payments constituting the portion sold shall be made
directly to the authority or its assignee.
§4-11A-14. Authorization of bonds of the authority.
(a) The authority may issue bonds and, if bonds are issued,
shall make the net proceeds from the bonds available to the state
pursuant to the sales agreement to be applied as set forth in this
article and to provide a secure and stable source of funding to the
state, consistent with the purposes of this article. In connection
with the issuance of bonds and subject to the terms of the sales
agreement, the authority shall determine the terms and other
details of the financing. Bonds issued pursuant to this section
may be secured by a pledge of all or a portion of the state's share
purchased by the authority and any moneys derived from the state's
share purchased by the authority, and any other sources available
to the authority. The authority may also issue refunding bonds,
including advance refunding bonds, for the purpose of refunding
previously issued bonds and may issue other types of bonds, debt
obligations and financing arrangements necessary to fulfill its
purposes or the purposes of this article.
(b) The authority may issue its bonds in principal amounts
which, in the opinion of the authority, are necessary to provide sufficient funds for achievement of its purposes, the payment of
interest on its bonds, the establishment of reserves to secure the
bonds, the costs of issuance of its bonds, and all other
expenditures of the authority incident to and necessary to carry
out its purposes or powers. The bonds are investment securities
and negotiable instruments within the meaning of and for purposes
of the uniform commercial code.
(c) Bonds issued by the authority are payable solely and only
out of the moneys, assets or revenues pledged by the authority and
are not a general obligation or indebtedness of the authority or an
obligation or indebtedness of the state or any subdivision of the
state. The authority shall not pledge the credit or taxing power
of the state or any political subdivision of the state, or create
a debt or obligation of the state, or make its debts payable out of
any moneys except those of the authority.
(d) Bonds of the authority shall state on their face that they
are payable both as to principal and interest solely out of the
assets of the authority pledged for their purpose and do not
constitute an indebtedness of the state or any political
subdivision of the state; are secured solely by and payable solely
from assets of the authority pledged for such purpose; constitute
neither a general, legal or moral obligation of the state or any of
its political subdivisions; and that the state has no obligation or
intention to satisfy any deficiency or default of any payment of
the bonds.
(e) Any amount pledged by the authority to be received under
any sales agreement is valid and binding at the time the pledge is
made. Amounts so pledged and then or thereafter received by the
authority shall immediately be subject to the lien of such pledge
without any physical delivery of those amounts or further act. The
lien of any such pledge shall be valid and binding as against all
parties having claims of any kind against the authority, whether
the parties have notice of the lien. Notwithstanding any other
provision to the contrary, the resolution of the authority or any
other instrument by which a pledge is created need not be recorded
or filed to perfect the pledge.
(f) The proceeds of bonds issued by the authority and not
required for transfer to the consolidated public retirement board
may be invested in any security or obligation approved by the board
and specified in the trust indenture or resolution pursuant to
which the bonds must be issued, notwithstanding any other provision
to the contrary.
(g) The exercise of the powers granted to the authority by
this article will be in all respects for the benefit of the people
of the state for the improvement of their health, safety,
convenience and welfare and is a public purpose. All bonds of the
authority, and all interest and income on the bonds, shall be
exempt from all taxation by this state and any county,
municipality, political subdivision or agency.
(h) Bonds of the authority shall comply with all of the following:
(1) The bonds shall be in a form, issued in denominations,
executed in a manner and payable over terms and with rights of
redemption, as the board prescribes in the trust indenture or
resolution authorizing their issuance;
(2) The bonds shall be fully negotiable instruments under the
laws of this state and may be sold at prices, at public or private
sale, and in a manner prescribed by the board; and
(3) The bonds shall be subject to the terms, conditions and
covenants providing for the payment of the principal, redemption
premiums, if any, interest which may be fixed or variable during
any period the bonds are outstanding and other terms, conditions,
covenants and protective provisions safeguarding payment, not
inconsistent with this chapter and as determined by the trust
indenture or resolution of the board authorizing their issuance.
(i) The bonds issued under this article are securities in
which insurance companies and associations and other persons
engaged in the business of insurance; banks, trust companies,
savings associations, savings and loan associations and investment
companies; administrators, guardians, executors, trustees and other
fiduciaries; and other persons authorized to invest in bonds or
other obligations of the state may properly and legally invest
funds, including capital, in their control or belonging to them.
(j) Bonds must be authorized by a resolution of the board.
However, a resolution authorizing the issuance of bonds may delegate to an officer of the authority the power to negotiate and
fix the details of an issue of bonds and of their sale by an
appropriate certificate of the authorized officer or by execution
and delivery of a trust indenture or bond purchase agreement.
(k) To comply with federal law with respect to the issuance of
bonds, the interest of which is tax-exempt pursuant to the Internal
Revenue Code, the authority may issue a certain series of bonds, or
periodically issue several series of bonds, so that interest on the
bonds remains exempt from federal taxation or to comply with the
purposes specified in this article.
(l) In connection with the issuance of any bonds authorized
and issued pursuant to this section, and in addition to the funds
and accounts established elsewhere in this article, the board may,
under the trust indenture or resolution pursuant to which the bonds
are issued, establish the other accounts, sub-accounts or reserves
as may be deemed necessary by the board.
(m) The state covenants and agrees with the authority, and the
holders of the bonds in which the authority has included the pledge
and agreement, that the state will: (i) Irrevocably direct the
escrow agent and independent auditor under the master settlement
agreement to transfer all conveyed tobacco settlement payments
directly to the authority or its assignee; (ii) enforce the
authority's rights to receive the tobacco settlement payments to
the full extent permitted by the terms of the master settlement
agreement; (iii) not amend the master settlement agreement in any manner that would materially impair the rights of the holders;
(iv) not limit or alter the rights of the authority to fulfill the
terms of its agreements with such holders; and (v) not in any way
impair the rights and remedies of the holders or the security for
the bonds until the bonds, together with the interest thereon and
all costs and expenses in connection with any action or proceeding
by or on behalf of the holders, are fully paid and discharged.
§
4-11A-15. Tobacco settlement debt service fund created.
There is hereby created a special fund within the state
treasury separate and apart from all other public moneys or funds
of the state named the tobacco settlement debt service fund into
which there shall be deposited on behalf of the authority all
portions of the state's share sold pursuant to the terms of one or
more sales agreements and to be used or pledged to the payment of
debt service on any bonds issued under this article. The authority
may provide, by resolution authorizing bonds issued under this
article or in the resolution or trust indenture pursuant to which
bonds are issued under this article, for priorities on revenues
paid into the tobacco settlement debt service fund as may be
necessary for the protection of the prior rights of holders of
bonds issued at different times under the provisions of this
article. Moneys on deposit in the tobacco settlement debt service
fund shall be transferred and disbursed at the times and in the
manner set forth in the resolution or trust indenture pursuant to
which bonds are issued under this article.
§
4-11A-16. Exemption from purchasing provisions.
The provisions of article three, chapter five-a of this code
shall not apply to the authority and contracts entered into by the
authority in carrying out its public and essential governmental
functions are exempt from the laws of the state which provide for
competitive bids and hearings in connection with contracts.
§4-11A-17. Annual report.
(a) The authority shall submit to the governor, the
Legislature and the attorney general, on or before the thirty-first
day of December, annually, a report including information regarding
all of the following:
(1) Its operations and accomplishments;
(2) Its receipts and expenditures during the previous fiscal
year, in accordance with classifications it establishes for its
operating and capital accounts;
(3) Its assets and liabilities at the end of the previous
fiscal year and the status of reserve, special and other funds;
(4) A schedule of its bonds outstanding at the end of the
previous fiscal year and a statement of the amounts redeemed and
issued during the previous fiscal year;
(5) A statement of its proposed and projected activities;
(6) Recommendations to the governor and the Legislature, as
necessary; and
(7) Any other information.
(b) The annual report shall identify performance goals of the authority and clearly indicate the extent of progress made in
attaining those goals.
§
4-11A-18. Bankruptcy.
Prior to the date which is three hundred sixty-six days after
which the authority no longer has any bonds outstanding, the
authority may not file a voluntary petition under chapter nine of
the federal bankruptcy code or the corresponding chapter or section
as may, from time to time, be in effect and a public official or
organization, entity or other person shall not authorize the
authority to be or become a debtor under chapter nine or any
successor or corresponding chapter or sections during those
periods. The provisions of this section shall be part of any
contractual obligation owed to the holders of bonds issued under
this article. State law shall not subsequently modify any
contractual obligation, during the period of the contractual
obligation.
§
4-11A-19. Dissolution of the authority.
The authority shall dissolve no later than two years from the
date of final payment of all outstanding bonds and the satisfaction
of all outstanding obligations of the authority, except to the
extent necessary to remain in existence to fulfill any outstanding
covenants or provisions with bondholders or third parties made in
accordance with this article. Upon dissolution of the authority,
all assets of the authority shall be transferred to the state and
fifty percent shall be deposited in the medical trust fund and fifty percent shall be deposited in the tobacco settlement fund,
unless otherwise directed by the Legislature, and the authority
shall execute any necessary assignments or instruments, including
any assignment of any right, title or ownership to the state for
receipt of payments under the master settlement agreement.
§4-11A-20. Severability.
If any section, subsection, subdivision, subparagraph,
sentence or clause of this article is adjudged to be
unconstitutional or invalid, the adjudication shall not affect the
validity of the remaining portions of this article and, to this
end, the provisions of this article are hereby declared to be
severable.
§4-11A-21. Construction.
This article, necessary for the welfare of the state and its
people, shall be liberally construed to effect its purpose.
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