Chapter 391
2011 -- H 6015
Enacted 07/13/11
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:
CHAPTER
22
PRIVATE
ACTIVITY BOND APPROVAL ACT
35-22-1.
Short title. -- This act may be cited as the
"Private Activity Bond Approval
Act."
35-22-2.
Public policy. -- It is the policy of the State
of
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
section.
(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.
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LC02318
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