STATEMENTS OF POLICY
Title 12--COMMERCE, TRADE AND LOCAL GOVERNMENT
DEPARTMENT OF COMMUNITY AND
ECONOMIC DEVELOPMENT
[12 PA. CODE CH. 61]
Private Activity Bonds
[28 Pa.B. 1139] The Department of Community and Economic Development (Department) amends Chapter 61 (relating to private activity bonds--statement of policy) to read as set forth in Annex A. The statement of policy is amended under authority of section 7(4) of the Tax-Exempt Bond Allocation Act (act) (73 P. S. § 397.7(4)).
Background
The Federal Internal Revenue Code of 1986 (IRC) imposes a State ceiling on the aggregate amount of private activity bonds that may be issued in each calendar year by or on behalf of the Commonwealth and its political subdivisions.
The General Assembly adopted the Tax-Exempt Bond Allocation Act in 1985 to provide for the allocation of the State ceiling. The act authorizes the Secretary of Community and Economic Development to publish as statements of policy the county-by-county allocations. The amended statement of policy provides for the 1998 allocation of the State ceiling. The amendments are needed because the current statement of policy provides allocations only for calendar year 1997.
Amendments
Section 61.5 (relating to allocations of tax-exempt bond authority) is amended to establish the private activity bond allocations for calendar year 1998.
Fiscal Impact
The amended statement of policy has no fiscal impact on the Commonwealth, political subdivisions or the public. The amended statement of policy does not affect the total dollar amount of private activity bonds, as these ceilings are determined by Federal law. No Commonwealth funds are involved in the issuance of private activity bonds. All costs of bond issuance are paid for by bond proceeds or through funds of the issuer or borrower. The amended statement of policy will result in the use of private activity bonds to their maximum benefit, thereby increasing available resources.
Paperwork Requirements
Additional paperwork requirements are not imposed as a result of the amended statement of policy.
Contact Person
For further information regarding the amended statement of policy, contact Jill B. Busch, Deputy Chief Counsel, Office of Chief Counsel, Department of Community and Economic Development, Room 530 Forum Building, Harrisburg, PA 17120, (717) 783-8452.
Findings
The Department finds that:
(1) Delay in implementing the statement of policy will have a serious adverse impact on the public interest.
Order
The Department, acting under the authorizing statute, orders that:
(a) The statement of policy of the Department, 12 Pa. Code Chapter 61, is amended by amending § 61.5 to read as set forth in Annex A, with ellipses referring to the existing text of the statement of policy.
(b) The Secretary of Community and Economic Development shall submit this order and Annex A to the Office of General Counsel for approval as to form and legality as required by law.
(c) The Secretary of Community and Economic Development shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.
(d) This order shall take effect upon publication in the Pennsylvania Bulletin.
SAMUEL MCCULLOUGH,
SecretaryFiscal Note: 4-66. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 12. COMMERCE, TRADE AND LOCAL GOVERNMENT
PART III. BUSINESS FINANCING
Subpart B. BONDS
CHAPTER 61. PRIVATE ACTIVITY BONDS--STATEMENT OF POLICY § 61.5. Allocations of tax-exempt bond authority.
The act allocates the Commonwealth's tax-exempt bond authority to five categories as follows:
(1) Housing related bonds. An amount equal to $160 million will be allocated for housing related bonds, including qualified residential rental projects and qualified mortgage bonds as defined by sections 142(d) and 143(a) of the Internal Revenue Code (26 U.S.C.A. §§ 142(d) and 143(a)). Requests to apply the housing related bond allocation to specific projects or uses, including mortgage credit certificate programs, will be reviewed and may be approved or disapproved by the Board of the Housing Finance Agency. Application for housing related bond allocations shall be made to the Executive Director of the Housing Finance Agency.
(2) Qualified student loan bonds. An amount equal to $50 million will be allocated to the Pennsylvania Higher Education Assistance Agency for qualified student loan bonds provided by section 144(b) of the Internal Revenue Code (26 U.S.C.A. § 144(b)).
(3) Qualified small issue bonds. An amount equal to $175 million will be allocated for qualified small issue bonds under section 144(a) of the Internal Revenue Code. This amount will be allocated in accordance with the formula in § 63.1(d) (relating to allocations). Requests to apply this allocation to specific projects or uses will be reviewed and may be approved or disapproved by the Secretary. Application for allocations shall be made to the Private Capital Financing Office in the Department. The Secretary will provide allocations for qualified small issue bonds utilizing the procedure and subject to the requirements in § 63.3 (relating to procedures).
County Allocation Adams $400,000 Allegheny $14,785,000 Armstrong $400,000 Beaver $400,000 Bedford $400,000 Berks $6,457,000 Blair $4,188,000 Bradford $400,000 Bucks $9,445,000 Butler $5,471,000 Cambria $1,505,000 Cameron $400,000 Carbon $400,000 Centre $400,000 Chester $6,860,000 Clarion $400,000 Clearfield $1,259,000 Clinton $400,000 Columbia $400,000 Crawford 3,981,000 Cumberland $400,000 Dauphin $400,000 Delaware $1,659,000 Elk $400,000 Erie $8,514,000 Fayette $400,000 Forest $400,000 Franklin $4,605,000 Fulton $400,000 Greene $400,000 Huntingdon $400,000 Indiana $400,000 Jefferson $2,242,000 Juniata $400,000 Lackawanna $574,000 Lancaster $4,327,000 Lawrence $3,439,000 Lebanon $2,530,000 Lehigh $2,508,000 Luzerne $5,681,000 Lycoming $400,000 McKean $3,609,000 Mercer $5,106,000 Mifflin $400,000 Monroe $1,214,000 Montgomery $17,270,000 Montour $2,175,000 Northampton $12,416,000 Northumberland $400,000 Perry $400,000 Philadelphia $6,240,000 Pike $400,000 Potter $400,000 Schuylkill $3,777,000 Snyder $400,000 Somerset $400,000 Sullivan $400,000 Susquehanna $400,000 Tioga $400,000 Union $400,000 Venango $400,000 Warren $400,000 Washington $6,628,000 Wayne $400,000 Westmoreland $5,160,000 Wyoming $400,000 York $6,575,000 Totals $175,000,000 (4) Other qualified private activity bonds. An amount equal to $166 million will be allocated to other qualified private activity bonds, including qualified redevelopment bonds as defined by section 144(c) of the Internal Revenue Code, exempt facility bonds as defined by section 142 (excluding section 142(d)) of the Internal Revenue Code, and enterprise zone bonds as defined by section 1394 of the Internal Revenue Code (26 U.S.C.A. § 1394), all of which are subject to the volume cap provided by section 146 of the Internal Revenue Code (26 U.S.C.A. § 146). Requests to apply this allocation to specific projects or uses will be reviewed and may be approved or disapproved by the Secretary. Applications for allocations shall be made to the Private Capitol Financing Office in the Department. An allotment of at least 25% of the allocation provided in this paragraph is reserved for solid waste disposal projects.
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[Pa.B. Doc. No. 98-334. Filed for public inspection February 27, 1998, 9:00 a.m.]
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