NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.



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F I S C A L I M P A C T R E P O R T





SPONSOR: Burpo DATE TYPED: 02/22/01 HB 169/aHGUAC
SHORT TITLE: State Private Activity Bond Changes SB
ANALYST: Eaton


REVENUE



Estimated Revenue
 Subsequent

Years Impact

 Recurring

or Non-Rec

 Fund

Affected

FY01 FY02
Unknown



(Parenthesis ( ) Indicate Revenue Decreases)



SOURCES OF INFORMATION



Attorney General's Office



SUMMARY



Synopsis of HGUAC Amendment



The House Government & Urban Affairs Committee amendment changes the "state ceiling" definition/calculation by striking fifty dollars and inserting $62.50, and by changing the minimum amount from $150 million to $187.5 million. As a point of information, the ceiling will also be raised because population based on decennial census figures is used in the calculation and is higher in 2000 than in 1990 (p. 5 lines 20-22).



Synopsis of Original Bill



This bill will expand the definition of "issuing authorities" and will provide the Board of Finance greater flexibility in allocating the state's private activity bonds.



Significant Issues



The current law has calendar, percentage and agency limits on bond allocations. Currently, the Board of Finance can only make available 40 percent of the year's allocation to state agencies (i.e., Mortgage Finance Authority and Education Assistance Foundation) prior to June 30th. The other 60 percent of the year's allocation goes to non-state agencies prior to June 30th. The Board can make available any remaining amounts to any party after July 1st. This bill will delete these calendar, percentage and agency limitations. This bill will also add "regional housing authorities" and "other governmental entities permitted by state law" to the definition of "issuing authorities".







FISCAL IMPLICATIONS



Unknown.



POSSIBLE QUESTIONS



Why does the current law have percentage limitations on state agencies and non-state agencies?



JBE/ar