An Act To Provide for the 2016 and 2017 Allocations of the State Ceiling on Private Activity Bonds

Emergency preamble. Whereas,  acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and

Whereas,  the Maine Revised Statutes, Title 10, section 363 and Private and Special Law 2015, chapter 6 make a partial allocation of the state ceiling on private activity bonds to some issuers for calendar year 2016 but leave a portion of the state ceiling unallocated and do not provide sufficient allocations for certain types of private activity bonds that may require an allocation prior to the effective date of this Act if not enacted on an emergency basis; and

Whereas,  if these bond issues must be delayed due to the lack of available state ceiling, the rates and terms under which these bonds may be issued may be adversely affected, resulting in increased costs to beneficiaries or even unavailability of financing for certain projects; and

Whereas,  in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Sec. 1. Allocation to the Treasurer of State. The $5,000,000 of the state ceiling on private activity bonds for calendar year 2016 previously allocated to the Treasurer of State remains allocated to the Treasurer of State to be used or reallocated in accordance with the Maine Revised Statutes, Title 10, section 363, subsection 5 for calendar year 2016. Five million dollars of the state ceiling for calendar year 2017 is allocated to the Treasurer of State to be used or reallocated in accordance with Title 10, section 363, subsection 5.

Sec. 2. Allocation to the Finance Authority of Maine. The $40,000,000 of the state ceiling on private activity bonds for calendar year 2016 previously allocated to the Finance Authority of Maine remains allocated to the Finance Authority of Maine to be used or reallocated in accordance with the Maine Revised Statutes, Title 10, section 363, subsection 6 for calendar year 2016. Forty million dollars of the state ceiling for calendar year 2017 is allocated to the Finance Authority of Maine to be used or reallocated in accordance with Title 10, section 363, subsection 6.

Sec. 3. Allocation to the Maine Municipal Bond Bank. The $10,000,000 of the state ceiling on private activity bonds for calendar year 2016 previously allocated to the Maine Municipal Bond Bank remains allocated to the Maine Municipal Bond Bank to be used or reallocated in accordance with the Maine Revised Statutes, Title 10, section 363, subsection 7 for calendar year 2016. Ten million dollars of the state ceiling for calendar year 2017 is allocated to the Maine Municipal Bond Bank to be used or reallocated in accordance with Title 10, section 363, subsection 7.

Sec. 4. Allocation to the Finance Authority of Maine as successor to the Maine Educational Loan Authority. The $15,000,000 of the state ceiling on private activity bonds for calendar year 2016 previously allocated to the Maine Educational Loan Authority is now allocated to the Finance Authority of Maine to be used or reallocated in accordance with Public Law 2015, chapter 170 and with the Maine Revised Statutes, Title 10, section 363, subsection 8 for calendar year 2016. Fifteen million dollars of the state ceiling for calendar year 2017 is allocated to the Finance Authority of Maine to be used or reallocated in accordance with Title 10, section 363, subsection 8.

Sec. 5. Allocation to the Maine State Housing Authority. The $50,000,000 of the state ceiling on private activity bonds for calendar year 2016 previously allocated to the Maine State Housing Authority remains allocated to the Maine State Housing Authority to be used or reallocated in accordance with the Maine Revised Statutes, Title 10, section 363, subsection 4 for calendar year 2016. Fifty million dollars of the state ceiling for calendar year 2017 is allocated to the Maine State Housing Authority to be used or reallocated in accordance with Title 10, section 363, subsection 4.

Sec. 6. Unallocated state ceiling. One hundred eighty-one million five hundred fifteen thousand dollars of the state ceiling on private activity bonds for calendar year 2016 is unallocated and must be reserved for future allocation in accordance with applicable laws. One hundred eighty-one million five hundred fifteen thousand dollars of the state ceiling for calendar year 2017 is unallocated and must be reserved for future allocation in accordance with applicable laws.

Emergency clause. In view of the emergency cited in the preamble, this legislation takes effect when approved.

SUMMARY

This bill establishes the allocations of the state ceiling on issuance of tax-exempt private activity bonds for calendar years 2016 and 2017 among the state-level issuers of tax-exempt bonds.