2011 -- H 6015
A N A C T
RELATING TO PUBLIC FINANCE - PRIVATE ACTIVITY BOND ACT
Introduced By: Representative John J. McCauley
Date Introduced: March 31, 2011
It is enacted by the General Assembly as follows:
SECTION 1. Title 35 of the General Laws entitled "PUBLIC FINANCE" is hereby
amended by adding thereto the following chapter:
PRIVATE ACTIVITY BOND APPROVAL ACT
35-22-1. Short title. -- This act may be cited as the "Private Activity Bond Approval
Public policy. -- It is the policy of the State
Plantations (the "State") that in order to maintain an effective system of monitoring the use of
federal subsidies within the state, facilities within the state proposed to be financed with bonds
issued by an issuer that does not have jurisdiction over the location of those facilities including,
but not limited to, issuers located outside of the state, must receive prior host approval from the
governor of the state in accordance with this act.
35-22-3. Definitions. -- "Host approval" means an approval by an applicable elected
representative of a governmental unit, for purposes of section 147(f)(2)(A)(ii) of the Internal
Revenue Code of the
facility is located that is to be financed with bonds issued by an issuer that does not have
jurisdiction over the location of the facility.
35-22-4. Qualification for facility requiring host approval. -- (a) Host approval shall
not be granted unless and until the governor has received the items and information listed in
subsection (b) of this section and has issued an approval as set forth in subsection (c) of this
(b) The following items and information must be received by the governor:
(1) A copy of the notice of public hearing pertaining to the facilities;
(2) Minutes or another official record of the public hearing;
(3) The maximum stated principal amount of the bonds;
(4) A description of the facility, including its location;
(5) A description of the plan of finance;
(6) The name of the issuer of the bonds; and
(7) The name of the initial owner or principal user of the facility.
(c) If, and only if, the governor determines that the facility, its financing in accordance
with the plan, and the items and information submitted under subsection (b) of this section are
consistent with the laws and public policy of the state and are in the best interest of the state, then
the governor shall issue a written approval under this section authorizing the governmental unit to
grant its host approval in its discretion.
SECTION 2. This act shall take effect upon passage.