Washington Administrative Code Title 465 - Tobacco Settlement Authority
Washington Administrative Code (WAC) Title 465 – Tobacco Settlement Authority
Overview:
WAC Title 465 contains the administrative rules governing the Tobacco Settlement Authority (TSA), a public body established under Chapter 43.340 RCW. The Authority was created to manage and securitize a portion of Washington’s share of the national tobacco settlement (known as the Master Settlement Agreement or MSA) to generate funding for state programs.
Purpose of the Tobacco Settlement Authority:
Issue bonds backed by tobacco settlement revenues.
Provide a stable source of financing for state needs by leveraging future settlement payments.
Ensure transparency and accountability in managing the proceeds and obligations.
Key Provisions in WAC Title 465:
Organization and Governance:
Defines the structure of the TSA, including its board and executive management.
Establishes rules for board meetings, decision-making processes, and public access.
Bond Issuance:
Governs the process for issuing revenue bonds secured by future tobacco settlement payments.
Includes provisions for bond terms, investor disclosures, and repayment procedures.
Use of Proceeds:
Clarifies how proceeds from bond sales may be used—typically to support state programs and offset budget pressures.
Financial Reporting and Audits:
Requires regular financial reporting, independent audits, and disclosure of financial statements.
Public Transparency and Records:
Ensures compliance with public records and open meetings laws.
Example Chapter:
WAC 465-10 – Describes general provisions, such as the Authority’s purpose, definitions, and public meeting procedures.
Background Context:
The TSA was a response to the 1998 Master Settlement Agreement between 46 states and major tobacco companies. Instead of waiting for decades of annual payments, Washington securitized a portion of its future payments through bond issuance, which allowed immediate access to capital.
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