SRC-TJG S.B. 1867 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1867
By: Bivins
Finance
5/2/2003
As Filed


DIGEST AND PURPOSE 

As proposed, S.B. 1867 requires the comptroller of public accounts
(comptroller), in consultation with the Legislative Budget Board, to study
and determine the best way to maximize, for use in the 2003-2005 fiscal
biennium, the revenue that may be made available to the state as a result
of the tobacco settlement agreement.  This bill also authorizes the
comptroller to direct the Texas Public Finance Authority and the attorney
general to take certain actions relating to revenue available to the state
as a result of the tobacco settlement.  


RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  (a) Defines "settlement agreement."

(b) Requires the comptroller of public accounts (comptroller), in
consultation with the Legislative Budget Board, to study and determine the
best way to maximize, for use in the 2003-2005 fiscal biennium, the
revenue that may be made available to the state as a result of the
settlement agreement. 

(c) Authorizes the comptroller to direct that the Texas Public Finance
Authority issue revenue bonds, the principal and interest payments for
which may be paid solely from revenue the state is entitled to receive
under the settlement agreement during all or a specified number of future
years or direct that the attorney general assign all or a part of the
state's future right to receive payments under the settlement agreement to
another party in exchange for the fair market value of that right, as
determined by the attorney general in consultation with the comptroller,
and subject to the right of the attorney general to refuse any offer made. 

(d) Authorizes money obtained by the state under Subsection (c) of this
section to be used for any state government purposes. 

SECTION 2.  Effective date: upon passage or September 1, 2003.