Bill Text: VA SB1061 | 2023 | Regular Session | Chaptered
Bill Title: Private activity bonds; updates notice requirements for public hearings.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2023-03-21 - Governor: Acts of Assembly Chapter text (CHAP0130) [SB1061 Detail]
Download: Virginia-2023-SB1061-Chaptered.html
Be it enacted by the General Assembly of Virginia:
1. That §§2.2-2292, 15.2-4906, 15.2-4907, and 36-29 of the Code of Virginia are amended and reenacted as follows:
§2.2-2292. Public hearing and approval.
Whenever federal law requires public hearings and public
approval as a prerequisite to obtaining federal tax exemption for the interest
paid on private activity bonds under Section § 147(f) of the
Internal Revenue Code, unless otherwise specified by federal law or regulation,
the public hearing for private activity bonds of the Authority shall be
conducted by the Authority and the procedure for the public hearing and public
approvals shall be as follows:
1. For a public hearing by the Authority:
a. Notice of the hearing shall be published once a week for
two successive weeks not less than seven days in advance of such hearing
in a newspaper published or having general circulation in the municipality
locality in which the facility to be financed is to be located of
intention to provide financing for a named applicant. The applicant shall
pay the cost of notification. The notice shall also be mailed or otherwise
delivered to the clerk of the local governing body of the municipality. The
notice shall specify the time and place of hearing at which persons may appear
and present their views. The hearing shall be held not less than six
seven days nor more than 21 days after the second notice
shall appear in such newspaper has been published. The hearing may
be held at any place within the Commonwealth determined by the Board.
b. The notice shall contain (i) the name and address of the Authority; (ii) the name and address of the principal place of business, if any, of the applicant seeking financing; (iii) the maximum dollar amount of financing sought; and (iv) the type of business and purpose and specific location, if known, of the facility to be financed.
c. Every The Authority may require any request
for private activity bond financing when submitted to the Authority shall
to be accompanied by a statement in the following form, but the absence
of any such form shall not affect the validity of a private activity
bond:
Name of Applicant: ______________________________
Facility: ______________________________
Date: ____________________
Maximum amount of financing sought: $_____
Estimated taxable value of the facility's real property in the municipality in which it is located. $_____
Estimated taxable value of the facility's real property once constructed or expanded. $_____
Estimated real property tax per year using present tax rates on the facility's real property once constructed or expanded. $_____
Estimated personal property tax per year from property to be located in expanded or constructed facility using present tax rate. $_____
Estimated merchants' capital tax per year from property to be located in expanded or constructed facility using present tax rate. $_____
Estimated dollar value per year of goods and services that will be purchased in the Commonwealth during construction or expansion of facility. $_____
Estimated dollar value per year of goods and services that will be purchased in the Commonwealth for the operation of the facility. $_____
Estimated dollar value per year of goods and services that will be produced and sold from the facility. $_____
Estimated number of employees during construction or expansion _____
Estimated number of regular employees on a year round basis during operation of the facility _____
Average annual salary per regular employee during operation of the facility. $_____
Estimated payroll for labor during construction or expansion of the facility. $_____
If any of the above questions do not apply to the eligible business being financed, indicate by writing N/A (not applicable) on the appropriate line.
2. For public approval, the Governor is appointed by this
article as the applicable elected representative within the meaning of
Section § 147(f)(2)(E) of the Internal Revenue Code.
§15.2-4906. Public hearing and approval.
A. Whenever federal law requires public hearings and public
approval as a prerequisite to obtaining federal tax exemption for the interest
paid on industrial development private activity bonds, unless
otherwise specified by federal law or regulation, the public hearing shall be
conducted by the authority and the procedure for the public hearing and public
approval shall be in accordance with this section.
B. For a public hearing by the authority, notice of the
hearing shall be published once a week for two successive weeks not
less than seven days in advance of such hearing in a newspaper having
general circulation in the locality in which the facility to be financed is to
be located of intention to provide financing for a named individual or
business entity. The applicant shall pay the cost of publication. The
notice shall specify the time and place of hearing at which persons may appear
and present their views. The hearing shall be held not less than six
seven days nor more than twenty-one days after the second
notice shall appear in such newspaper has been published.
The notice shall contain: (i) the name and address of the authority; (ii) the name and address (principal place of business, if any) of the party seeking financing; (iii) the maximum dollar amount of financing sought; and (iv) the type of business and purpose and specific location, if known, of the facility to be financed.
If after the hearing has been held the authority approves the financing, a reasonably detailed summary of the comments expressed at the hearing shall be conveyed promptly to the locality's governing body together with the recommendation of the authority.
C. For public approval, the governing body of the locality on
behalf of which the bonds of the authority are issued shall within sixty
calendar days from no more than one year after the public hearing
held by the authority either approve or disapprove financing of any facility
recommended by the authority.
Action of the governing body shall be by a majority of a quorum set out in a resolution. Such vote shall be recorded and disclose how each member voted.
In case of a joint authority the approval required by the governing body of the locality shall be that governing body of the area where the facility will be located, if permitted by federal law or regulation.
The provisions of this section shall not apply to bonds, notes or other obligations issued pursuant to hearings held and governmental approvals obtained prior to the effective date of this act in compliance with federal law or regulation.
§15.2-4907. Fiscal impact statement.
Every An authority may require any request for
industrial development (facility) private activity bond financing
when submitted to the governing body of the locality for approval shall
authority to be accompanied by a statement in the following form, but
the absence of any such form shall not affect the validity of a private
activity bond:
____________________
Date
________________________________________
(Name of Applicant)
________________________________________
(Facility)
|
1. Maximum amount of financing sought |
$_____ |
|
|
2. Estimated taxable value of the facility's real property to be constructed in the locality |
$_____ |
|
|
3. Estimated real property tax per year using present tax rates |
$_____ |
|
|
4. Estimated personal property tax per year using present tax rates |
$_____ |
|
|
5. Estimated merchants' capital tax per year using present tax rates |
$_____ |
|
|
6. a. Estimated dollar value per year of goods that will be purchased from Virginia companies within the locality |
$_____ |
|
|
b. Estimated dollar value per year of goods that will be purchased from non-Virginia companies within the locality |
$_____ |
|
|
c. Estimated dollar value per year of services that will be purchased from Virginia companies within the locality |
$_____ |
|
|
d. Estimated dollar value per year of services that will be purchased from non-Virginia companies within the locality |
$_____ |
|
|
7. Estimated number of regular employees on year round basis |
$_____ |
|
|
8. Average annual salary per employee |
$_____ |
Signature
________________________________________
Authority Chairman
________________________________________
Name of Authority
If one or more of the above questions do not apply to the facility indicate by writing N/A (not applicable) on the appropriate line.
The provisions of this section shall not apply to bonds, notes or other obligations issued pursuant to hearings held and governmental approvals obtained prior to the effective date of this act in compliance with federal law or regulation.
§36-29. Power to issue bonds; liability in general.
An authority shall have power to issue bonds from time to time in its discretion, for any of its corporate purposes. An authority shall also have power to issue refunding bonds for the purpose of paying or retiring bonds previously issued by it or for the purpose of refunding loans made by another entity if such loans could have been made by the authority. An authority may issue such types of bonds as it may determine, including (without limiting the generality of the foregoing):
(a) Bonds on which the principal and interest are payable:
(1) Exclusively from the income and revenues of the housing project financed with the proceeds of such bonds; or
(2) Exclusively from the income and revenues of certain designated housing projects whether or not they are financed in whole or in part with the proceeds of such bonds; or
(3) From its revenues generally.
(b) Bonds on which the principal is payable solely from annual contributions or grants received from the federal government or received from any other source, public or private.
Any such bonds may be additionally secured by a pledge of any grant or contributions from the federal government or other source, or a pledge of any income or revenues of the authority, or a mortgage of any housing project, projects or other property of the authority.
Neither the commissioners of an authority nor any person executing the bonds shall be liable personally on the bonds by reason of the issuance thereof. The bonds and other obligations of an authority (and such bonds and obligations shall so state on their face) shall not be a debt of the city, the county, the Commonwealth or any political subdivision thereof (other than the authority) and neither the city or the county, nor the Commonwealth or any political subdivision thereof (other than the authority) shall be liable thereon, nor in any event shall such bonds or obligations be payable out of any funds or properties other than those of the authority. The bonds shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction.
Whenever federal law requires public hearings and public approval as a prerequisite to obtaining federal tax exemption for the interest paid on private activity bonds authorized by this section, unless otherwise specified by federal law or regulation, the public hearing shall be conducted by the authority and the procedure for the public hearing and public approval shall be consistent with the procedures set forth in §15.2-4906.
An authority may require any application for private activity bond financing when submitted to the authority to be accompanied by a statement in the form set forth in §15.2-4907, but the absence of any such form shall not affect the validity of a private activity bond.
