Chapter 007
2010 -- H 7139 SUBSTITUTE A
Enacted 04/12/10
A N A C T
RELATING TO
PUBLIC FINANCE -- THE AMERICAN RECOVERY AND
REINVESTMENT
ACT--BONDS
Introduced By: Representatives Costantino, Carter, Melo, Giannini, and Silva
Date Introduced: January 19, 2010
It is enacted by the
General Assembly as follows:
SECTION 1. Chapter 35-8 of the General Laws entitled
"Bonded Indebtedness of State"
is hereby amended by adding thereto the following
section:
35-8-28. Interest
earnings on state bonded indebtedness -- Federal requirements. –
Notwithstanding any general or public law or rule to
the contrary, income from investments in the
capital development fund may be applied to capital purposes
and shall not become part of the
general fund of the state to the extent necessary to exempt
(in whole or in part) the interest paid
on such bonds or notes from federal taxation, to
preserve and maintain any federal tax credits
associated with such bonds or notes, or to preserve or maintain
any refundable tax credits paid or
to be paid to the state with regard to such bonds or
notes.
SECTION 2. Section 42-10.1-3 of the General Laws in Chapter
42-10.1 entitled "Public
Finance Management
Board" is hereby amended to read as follows:
42-10.1-3.
Allocation of statewide financing limitation. – (a)
The eighty-seven million
four thousand dollars ($87,004,000) in total recovery zone
economic development bond volume
cap allocations granted to the five (5) counties of the
State of
Secretary of the Treasury pursuant to 26 U.S.C.
sections 1400U-1 and 1400U-2 of the Internal
Revenue Code are hereby ceded to the State of
with the issuance of general obligation bonds of the
state.
(b) The one hundred
thirty million five hundred four thousand dollars ($130,504,000) in
total recovery zone facility bond volume cap allocations
granted to the five (5) counties of the
State of
sections 1400U-1 and 1400U-3 are hereby ceded to the public
finance management board for
subsequent allocation by the board in accordance with rules and
regulations to be promulgated by
the board in accordance with the Administrative Procedures
Act, Chapter 35 of this title.
(c) The ten million
nine hundred one thousand dollars ($10,901,000) in total qualified
energy conservation bond volume cap allocation granted to
the State of
Secretary of the Treasury pursuant to 26 U.S.C.
section 54D of the Internal Revenue Code is
hereby allocated to the board for subsequent allocations by
the board in accordance with rules and
regulations to be promulgated by the board in accordance with the
Administrative Procedures
Act, Chapter 35 of this title, provided, however, that
the City of
the board no less than its portion as provided in 26
U.S.C. section 54D(e)(2)(A) of the Internal
Revenue Code unless the City of
such portion to other bond issuers.
(d) The general
assembly hereby finds, declares and designates the entire State of
Island as a “recovery zone” meeting the standards
referenced in 26 U.S.C. section 1400U-1(b)(1)
of the Internal Revenue Code, given the significant
unemployment, rate of foreclosures, or
general distress present throughout the State of
geographic compactness of the state and the resultant
interrelated nature of economic conditions
and activities within the state as a whole.
(e) The board is
hereby authorized to allocate tax exempt and taxable bond issuance
capacity and/or federal tax credits among all issuers
in the state of
U.S.C. section 103, 26 U.S.C. section 145, or
pursuant to 26 U.S.C. sections 1400U-1, 1400U-2,
1400U-3, 54D
and any similar federal legislation heretofore or hereinafter enacted. The
allocations of tax exempt and taxable bond issuance
capacity and/or federal tax credits shall be
pursuant to rules and regulations to be promulgated by the
board in accordance with the
Administrative Procedures Act, chapter 35 of this
title.
SECTION 3. This act shall take effect upon passage.
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LC00469/SUB A
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